Key Insights:
Falling New Car Prices: The average new car price has dropped by 3% from June 2023 to June 2024, a shift that could lead to a significant increase in new retail sales.
Increased Inventory: Rising inventory levels are driving the price reductions, as manufacturers offer more incentives like promotional financing and cash back.
Lease Deals: Lease deals are a major factor in incentive spending, accounting for nearly 23% of new retail sales.
Cyberattack Impact: A recent cyberattack on CDK Global's Dealer Management System has disrupted the sales process and communication between dealers and buyers, posing a challenge during the crucial July 4 holiday weekend.
Key Takeaway:
The auto industry is seeing a positive shift with falling new car prices and increased inventory, but a recent cyberattack on dealer management systems poses challenges to sales and communication.
Trend:
The trend of rising new car prices is reversing, with increased inventory and manufacturer incentives leading to lower prices and potentially higher sales volumes.
Consumers Addressed:
This information is relevant to potential car buyers who can benefit from lower prices and more available inventory, but may face challenges due to the ongoing cyberattack's impact on the sales process.
Conclusions:
The decrease in new car prices and increased inventory are positive signs for the auto industry and consumers.
The cyberattack on dealer management systems could hinder sales during the critical July 4 holiday period.
Implications for Brands:
Automakers can leverage the increased inventory and falling prices to boost sales and offer attractive incentives to consumers.
They need to address the challenges posed by the cyberattack to ensure smooth sales processes and communication with customers.
Implications for Society:
Falling car prices can make new vehicles more accessible to a wider range of consumers.
The cyberattack highlights the vulnerability of critical systems in the auto industry and the need for enhanced cybersecurity measures to protect consumers and businesses.
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