The pandemic has been a global event with unprecedented impact on our industry. We learned that in these times, our customers demand convenience, efficiency, and speed in the buying process. Online transactions have become an expected part of the purchasing experience. Through it all, dealers have embraced digital tools to create a smooth car buying experience. 

The latest studies showed that nearly all the car buyers in the market start their research online, regardless of how they ultimately complete their purchase.

Fewer and fewer respondents completed each subsequent phase of the research process online. After submitting a lead form, the shopper either continues the process online or moves in-store.

The results showed that even though some purchasers end up buying online, the majority of them visited the store to complete their transaction. 

 

Did you complete your entire vehicle purchase online? 

How you can apply this your dealership:

 

Online research is one of the most important parts of the car buying process. A potential buyer needs to find the right vehicle, calculate payment estimates, and even start the credit application which is an important phase while they’re shopping for cars. There’s a higher chance to complete the sale when the applicants submit an application rather than just visiting your website or calling you for further information without filling out your online application.

This only can happen if you provide them with the right amount of information and convenience as they’re engaging with your website or your online inventory.

 

During the “research” phase, when consumers find a car on your website that they’re interested in, calculate payment estimates, and a credit application can play an important role until they finalize their purchase with you– whether online or in-store.

UNDERSTANDING THE ONLINE BUYER 

 

“11.63% of respondents said they completed their last vehicle purchase online. This subset of customers was asked again if they visited the dealership for any reason at all, and 77.59% still had to visit the dealership for one reason or another. Meaning of the total survey respondents, a mere 2.56% purchased 100% online. When asked about their online purchase experience, their satisfaction level was above average, with a score of 7.97 on a 10-point scale. 39% said convenience was the driving factor.”

 

The good news is consumers are willing to pay more for their vehicle if the dealership offers the following portions of the deal online:

As the studies show, the customer needs to be able to structure their deal on your website. 

Therefore, Ontario Underwriters are introducing an exciting new product to help you sell cars. We are offering our dealer partners an opportunity to add a link from their website (on other online presences such as Facebook, Kijiji, etc.)to a customized credit application. To Learn more about the product:

 

 

 

 

Reference:

REYNOLDS&REYNOLDS. (n.d.). Car buying unfolded. Reyrey.com. Retrieved April 21, 2022, from https://www.reyrey.ca/en/cp/retail-anywhere-report?utm_campaign=RR-CAN-ENG-RetailAnywhere_SY22_Q1&utm_source=RA_Car_Buying_Stats&utm_medium=CAD_Mar22 

 

Time to raise the red flag about what’s coming up, and how to manage the inevitable.

As a general principle, the non-prime market did somewhat well over the course of the pandemic, due to government aid.

The help consumers received during the COVID-19 crisis led to increased purchases for vehicles and even power sports. There was an increase in value for many reasons, and the price for used vehicles actually jumped about one per cent month-over-month—for power sports as well.

With government aid, many consumers were able to save more and spend more on things like more expensive vehicles. Some of these consumers are subprime, and specifically subprime consumers buying vehicles that are more expensive today.

The problem with this, that will inevitably present itself before us in the near future, is that consumers that buy into these more expensive vehicles will have a much higher negative equity when they want to resell or repurchase a new vehicle and trade-in that vehicle.

The problem we have today is not related to consumers getting approved at credit, because the credit approval and the default rates have been great. There is no issue with the markets as it is today.

But every lender knows that what is coming soon are rising (general) inflation rates—and higher interest rates mean consumers that are in non-prime will be the first to be impacted due to having purchased a vehicle over market value.

The whole non-prime market will see this potential issue coming fairly soon, where people will want to get out of those very expensive payments. And when they return those vehicles to a store or to try to sell them, they will be losing quite a lot, because their interest rates are higher and the vehicle price is higher. Therefore, their negative equity will be much higher.

This is a problem we are creating right now—that we created as of around last November, December, and into January. These consumers are buying high with high interest rates, and we are creating an impact that—in a few months from now, or years, or maybe a year or two—will have a lot of people buying vehicles with huge negative equities.

So for now, dealers are happy to sell vehicles during what may otherwise be a difficult period, with the vehicle inventory issue and other pandemic-related challenges. The problem is that we are shoveling negative equities, and we are not going to see such a nice scenario in a few months from now.

There is something coming—there is a wave coming, or it is already here. And what I can say is that I’m certain about that.

If you become more selective on prime,  then the non-prime segment will just grow by itself.

There will be more non-prime in the coming months and years because the interest rates will be higher. Therefore, consumers will be stuck with payments and it will be complicated and challenging for dealers that are not decoding non-prime, to cater to that segment. And the reason being is that the files will get more complex.

Dealers in the market will be choosing their consumers much more wisely, because they will not be able to afford issues with clients delaying payments since their interest rate will be high. They will become more narrow in terms of the actual prime consumers they want, which will raise the non-prime segment.

That’s the effect. If you become more selective on prime, then the non-prime segment will just grow by itself. There will be more non-prime consumers in the future, and with higher negative equities.

The challenge with that is that dealers need to secure the right inventory and the right employees to deal with the more complicated files that will result from this situation.

It’s not a simple prime approval—it will require expertise. Some dealers have that expertise, but I expect artificial intelligence technology to become a key or important player in this overall situation.

These types of tools, like predictive AI, are being adopted by some dealers to help with loan-matching and customer credit management, so that more consumers are approved, and dealers don’t leave money on the table.

And this year, dealers must investigate and implement this new technology, as well as prepare their non-prime processes for the coming months. Unprepared dealers will struggle with non-prime, they will pay a high price for experienced non-prime business managers, and their sales volumes will suffer as a result.

 

 

 

 

dealer, C. auto, & Hobbs, A.-M. (2022, February 22). Decoding the subprime lending market for 2022. Canadian Auto Dealer. Retrieved April 11, 2022, from https://canadianautodealer.ca/2022/02/decoding-the-subprime-lending-market-for-2022/

In the car industry we can be mystified when we see good finance applications are rejected. People just move on to the next deal and don’t give it much thought while they could make the deal work . 

If a finance manager can understand why certain deals get rejected at first, it can help dealers find some hidden opportunities for rejected applications.

Automatic rejections from a lender are often accepted as: “Consumer does not fit the lender criteria.”, without more information. Sending the application from one lender to another until the finance manager closes the file, only hurts the applicant’s credit.

Lenders see a different credit bureau than the finance managers and have their own internal scoring system. A finance manager will rarely know the actual internal score of a customer with that lender.

Lenders might decline a file that is not structured based on that lender’s specific criteria. The decision made by the lender is 90 percent based on the data that the finance manager puts in their system. It is very important for dealers to have a deep understanding of credit in order to figure out if their clients will be declined or approved prior to submitting. 

Dealers have to be aware that when you send a finance application, approximately 2 out of every 3 deals are decided automatically regardless of an approval or decline. These transactions may never be seen by a person. 

For example, there was an applicant who applied for a car loan while under bankruptcy. On the credit bureau you could see a vehicle repossession happened nine months after the bankruptcy, but in fact it was included in the bankruptcy. The lender’s system was  triggered to decline the application, however it was only bad timing and not another issue on the credit file.

Ontario Underwriters are confident that we can provide your customers the best finance option for their situation. Our licensed financial agents will consider each lender’s financing requirements when working on each deal. We know how to navigate your finance deals and help you to make the most out of each deal. 

A Hyundai car dealership is shown in Bowmanville, Ont., on Jan. 22, 2022. Around the world, automakers are still struggling with a global chip shortage that has hobbled the industry for much of the past year. Doug Ives/The Canadian Press

Canadians hoping to buy a new or used vehicle in 2022 are in for the same kind of rough ride that 2021 turned out to be.

Continuing supply chain snarls and pent-up buyer demand mean consumers should brace for shortages, staggering price tags and months-long wait times for new orders, industry experts said.

In the new car market, buyers will likely find a dearth of both vehicles and financial incentives on the dealership floor, said David Adams, president of Global Automakers of Canada.

The chances consumers will walk onto a dealer’s lot and find what they’re looking for are slim. Instead, according to Mr. Adams, more and more consumers will have to place an order for the vehicle they want and wait weeks or months for it to arrive.

And with demand outstripping supply, deals will be hard to come by, he cautioned. As of January, Canadians were paying around $44,000 on average for a new vehicle, according to figures from J.D. Power.

Buying a preowned vehicle won’t spare Canadians from sticker shock either. As of mid-February, the average used-car price in Canada was $34,594, up an astonishing 47 per cent compared with the same period in 2021, according to figures provided by Canadian Black Book (CBB).

Normally, cars lose between 20 per cent and 30 per cent of their value in the first year. But with new-vehicle shortages diverting demand to the used-car market, one-year-old vehicles are now often selling for roughly the price of new ones, said Daniel Ross, senior automotive analyst at CBB. He expects that trend to continue into the spring and summer.

Frustrated consumers can blame a lasting mismatch between supply and demand for their woes, according to Shawn DuBravac, chief economist at IPC, an electronics manufacturing trade association.

Around the world, automakers are still struggling with a global chip shortage that has hobbled the industry for much of the past year. Semi-conductors, an essential component of electronic devices, are also a mandatory input for a number of new vehicles’ features, from infotainment modules to fuel management systems to backup cameras.

The shortage traces its origins to the onset of the pandemic in the spring of 2020, when automakers around the world abruptly cut down production – and their semi-conductors orders – in response to what turned out to be a sharp but short-lived drop in demand for new vehicles.

When car sales bounced back and vehicle manufacturers rushed to increase orders from parts suppliers, they found they’d slipped to the back of the line for chip producers, which were also facing soaring demand for products such as laptops and servers from households and businesses adapting to remote work and schooling, Mr. DuBravac said.

While chip makers are producing at full throttle and new manufacturing capacity is coming online, persistently strong global demand for durable goods, many of which require semi-conductors, means the industry will likely take until late 2022 or early 2023 to catch up with the backlog, he said.

And chips are just one of the supply chain bottlenecks facing auto manufacturers, with the cross-border trade delays linked to Canada’s trucker convoy protests adding another disruption to an already strained logistics network.

Rising interest rates, which would make it more expensive for Canadians to finance their auto purchases, are unlikely to have much of a dampening effect on demand this year, Mr. Adams said. That’s because many consumers will be able to trade in their used vehicle for unusually high values, softening the financial impact of higher borrowing costs, he said.

For car buyers with a limited budget, the only options may be shopping for less popular models, such as large sedans, or older vehicles, according to Mr. Ross.

By Erica Alini, The Global and Mail

Even though the Emergencies Act invoked by Canadian Prime Minister Justin Trudeau halted the various border protests by truckers, some people in the Canadian automotive industry believe it will impact the relationship between Canada and the U.S. as trade partners.

David Adams, President of the Global Automakers of Canada, said beyond just the initial financial losses the Canadian automotive industry suffered, due to the inability of goods to cross the U.S.-Canadian borders, there is also the damage it may have caused in the business partnership between the two countries.

“The whole premise of investing in Canada is you have access to the United States, which is the largest market,” said Adams in an interview with Canadian auto dealer, adding the border impasse “probably caused significant damage internationally” for Canada. 

Moreover, he wondered if the protests were part of a concerted effort to make it look like Canada is an untrustworthy trading partner.

In an interview with the Globe and Mail, Automotive Parts Manufacturers’ Association President Flavio Volpe said the border disruptions have “caused potentially irreparable harm to Canada’s reputation as a reliable trading partner.”

The protests happened at a time when Canada was actively trying to stop the U.S. from passing controversial legislation by U.S. President Joe Biden that would provide financial incentives to build electric vehicles in America—something that could cripple the Canadian auto industry. 

Though the bill failed to pass by one vote in December, the Canadian auto sector is concerned it could pass if it is tweaked.

Jeanine Lassaline-Berglund, President of Automate Canada and the Canadian Association of Mold Makers, said regardless of why the protests happened, it is one of the many things that has been piled on the manufacturing community to deal with as a result of on-going legislation to control the pandemic. 

“When (the governments) call manufacturing an essential sector, it’s difficult to see our way through that without interruption,” said Lassaline-Berglund.

She said the protests and the fallout made it difficult on a manufacturing sector that is already feeling the impact of strained relations with their U.S. partners, customers and suppliers.

“We’re going to need to do some significant work through the manufacturing community with our government partners in building back relations with the U.S. if we want to get out of the mess we’re in,” she said.

The decision by Trudeau to step up the government’s reaction happened after various U.S. politicians publicly spoke about the need for Canada to end the dispute. Among those who voiced their opinion was Transportation Secretary Pete Buttigieg and Homeland Security adviser Liz Sherwood Randall. 

Michigan Democrat Debbie Dingell told CBC News the impasse is going to have an impact on relying on Canada for imports. “I’m going to be very blunt. It does,” she said. “We cannot let ourselves be held hostage to these kinds of situations. If this is going to become a new and regular situation, we’ve got to bring our supply chain back home. We can’t count on this bilateral relationship we have.”

Adams was critical of the length of time it took Trudeau to put legislation in place to end the protests. “The time to do this was probably a week or two ago, not three weeks into the dispute,” he said. “I think it seemed pretty clear after the first week that nobody was going to be doing anything any time soon. But if (the Emergencies Act) gets the protests sorted out, that’s a good step to take.”

 

 

 

Source:

dealer, C. auto, Lefko, P., Ockedahl, C., dealer, C. auto, Moskowitz, B., & Phillips, T. (2022, February 16). Auto leaders concerned protests damaged relationship with U.S. Canadian Auto Dealer. Retrieved February 16, 2022, from https://canadianautodealer.ca/2022/02/auto-leaders-concerned-protest-damaged-relationship-with-the-u-s/

More than half of the car buyers apply for a car loan or lease when they’re at the dealership. Here’s some useful information when they ask about rates. 

Most people know that their credit score affects their approval. There are many more variables involved than only the applicant’s credit score. Here are the most important factors when applying for a car loan:

 

Credit history 

There are two components that matter to the lenders: 

1. History of borrowing money and paying it back on time. No credit leaves the lenders guessing about what the future behavior will be. Lenders want to charge a higher rate people with little or no credit because they will have difficulty predicting their behavior. For example, someone can have a high credit score but don’t have long enough history to put them in a lower risk category for the lenders. 
2. Affordability: If the applicant can afford the payments based on their current debts, income, etc. If the applicant has a lot of debt and expenses, they will be seen as a riskier borrower, which results in a higher interest rate.

Overall, credit score is only a number. Score is only a screening factor. A high score means that a person has not made any mistakes with their credit but lenders don’t just look at your credit score and decide “approved” or “denied”. Our credit department will look at your credit, help you to get the best approval, and establish your credit for the future.

Debt-to-Income Ratio

Your debt-to-income ratio is all your monthly debt payments divided by your gross monthly income. This number is one way lenders measure your ability to manage the monthly payments to repay the money you plan to borrow. Lenders like to look at this ratio because it’s a good indication of how likely you are to pay off your new loan.

It’s also important to note that having debt can be better than having no debt, as lenders will be hesitant to lend to someone who cannot show any history of repayment.

 Vehicle Status

The car itself is considered as a collateral to secure the loan. Usually, older cars are less valuable to the banks. If the customer does not make their payments, the lenders will consider that as a riskier asset and charge a higher rate. Also, an older car will tend to become more expensive to maintain. Someone who’s already struggling to make their payments is more likely to default if the car requires repairs. When the banks do the analysis to calculate the interest rate, that’s a variable which contributes to their decision. Newer cars encourage lenders to offer lower rates.

Car Loan Terms 

Age and odometer are important factors that can affect the terms of the loan, such as interest rate, down payment, and amortization.

For example, the same person can be approved for a longer term and lower rate for a newer car, but might get a higher interest rate and shorter terms for another car. You can always reach out to us and discuss your customer’s options. 

Down Payment 

Down payment is equity towards the loan that offsets the bank’s risk. The down payment is a percentage of the purchase price of the car, that is paid upfront. Our underwriters will do their best to meet your customers expectations and get them the best approval based on their financial situation. 

Employment Stability

Lenders might ask for proof of employment, such as pay stubs, bank statements etc. Lenders will feel more confident in the applicant’s ability to pay back the loan. We are able to provide loans for many types of employment or in some cases non-employed . You can contact our licensed agents to discuss options.

The Economy

The economy is a big factor for lenders in determining interest rates. In times of economic distress, such as Canada’s 2008 recession, or this year’s COVID-19 pandemic, lenders change their programs according to the market and the risk exists. 

 

Ontario underwriters will be happy to answer all your questions about car loans and do a free, no obligation pre-approval for you. Which is a powerful time-saver.

 

Joe Tarin of Corsa Auto Repair and Sales surveys his downtown Toronto lot with a stoic smile. 
 
To pedestrians shuffling by, the used car dealership likely appears plenty full, with coupes and sedans parked bumper to bumper. But in fact, Tarin says his inventory is down as much as 35 per cent compared to pre-pandemic levels.

“After the pandemic, it’s extremely hard [to find used vehicles] and the prices have gone up extremely,” he noted. “So when we’re retailing it, the price is obviously going to be a bit higher.”

With inflation in Canada rising at the fastest pace in 18 years in October, virtually everything consumers buy has become more expensive. But amid a crippling microchip shortage and corresponding reduction in new car production, price hikes in the used vehicle market have been very severe. 
 
According to AutoTrader.ca, the country’s largest online marketplace for pre-owned cars, the average list price of a used vehicle surged 27 per cent year-over-year in November to $31,875. Previously, the mean price of a used car had never surpassed $30,000. Inventory, meantime, dropped 17 per cent. 

“One of the things that’s always been true about cars is that you buy a car and it’s worth less as soon as it leaves the lot,” said Flavio Volpe, president of the Automotive Parts Manufacturers Association. “This past year, the average value of used cars has gone up. It’s never happened before. It defies all economic modelling.”

Volpe said new car production was the “first domino” to fall during the pandemic. Without the semiconductors necessary to complete their vehicles, automakers were forced to slash output and park their unfinished inventory in sprawling lots. The issue then spread to auto parts suppliers, rental service companies and used car dealers, which rely on a steady flow of new cars and trucks. 

“Dealership groups usually have about 60, 70 days of inventory on hand,” Volpe noted. “They’re down to a week or two weeks in some cases. It’s really unprecedented.”

 

NEW GUARD, OLD GUARD

Experts also note the impact of the supply chain crunch on used car dealers has been uneven. Whereas more traditional retailers saw their inventory dwindle as the microchip shortage took hold, online used-vehicle sellers have managed to buck the trend. 

Clutch Canada Inc., for example, saw its inventory balloon over the course of the pandemic. 

The online buyer and seller of used cars had just 89 vehicles in its inventory at the end of the first quarter of 2020. Today, they boast 1,250 used cars and trucks.

“We’re a technology company at heart,” said Dan Park, chief executive officer of Clutch. “So our secret sauce is the software engineers, the data scientists and the analysts that we have that buy inventory every day.”

Park said that unlike traditional used car dealers, which rely heavily on trade-ins to replenish their stock, his team taps auctions, wholesales and private sales.

Still, Park noted it has become harder to source used vehicles, particularly given rental services’ depleted fleets. And as a result, prices for Clutch and its buyers have climbed.

On average, he said prices for vehicles selling on the online platform are up 16 per cent compared to the start of the pandemic. 

 

PRICE PRESSURE WON’T LET UP SOON

Experts say it will likely take at least two more quarters before car production returns to pre-pandemic levels and the auto ecosystem normalizes. But even then, there may be ongoing price pain for consumers. 

 According to Ian MacDonald, the chief marketing officer at AutoTrader.ca, carmakers may be learning the value of production discipline, and re-evaluate their inventory models.

“Maybe [automakers] will have less of an appetite to build up that inventory,” he said. “Because when demand is constant or even high… and the supply is constrained, many [carmakers] have realized that they don’t need to be quite as generous with incentives and things like that. There’s a higher margin for them.”

 

 

 

Ellis, P. (2021, December 6). Chip shortage, supply chain issues give used car prices rare boost – BNN Bloomberg. BNN. Retrieved December 7, 2021, from https://www.bnnbloomberg.ca/chip-shortage-supply-chain-issues-give-used-car-prices-rare-boost-1.1691701.

Any Score Accepted

Financing on the Vehicle of Your Choice, Bad Credit, No Credit!

Car Loan With No Money Down Up To $50K With Any Credit. Low Affordable Payments. Fast, Easy,  & 100% Secure!!! 

In the car industry we see these quotes everywhere. What extent can you trust these promises?

How long did it take you to realize misinformation from the finance company you’re working with can harm your business? When customers are presented with misinformation at the start of the process, it will be harder to close them at the end. You don’t want to make promises that you can’t keep.

 

• Are low interest rates available? Yes!
• Will it be available for anyone or on any car? No! 
• Can a customer be approved with 0 down payment? Yes!
• Will every customer qualify with 0 down payment? No!
• Can a customer be qualified without providing their SIN number? Yes!
• Can every customer on any car be approved without providing their SIN number? No!

 

In the finance world, one person can be qualified with a lower rate on one car, or the same person might be qualified for a higher rate on a different car. The same customer might even be declined for a different car! 

 Financing is a very scenario-based product. There are more variables involved than just a credit score. While we access the lowest prime rates for used cars, it is important to be aware that those rates will not be available for any car or any customer.

Just like selling cars requires your knowledge and experience, finance is our profession. Our services are not limited to only taking applications from you. We are looking forward to your growth. We’d like to do business with professional dealerships who may need more financing resources or need a virtual finance office to take care of some part of the job. We don’t sell cars and we only focus on getting the best terms for your customers. 

We are confident that we can provide your customers the best finance option for their situation. After the application is submitted we’ll get back to you and your customers in 1 to 2 hours and we take care of the whole financing process. We are mobile and provide our financial services throughout southern Ontario.

Let us professionally take care of your financing and work together to create the best sales experience for your customers.

 

Wholesale Prices, Week Ending October 22nd

 

 

The Canadian used wholesale market continues to be red-hot, as prices increase for the 11th straight week. 21 of 22 vehicle segments saw prices rise for the week, as lack of inventory continues to drive wholesale prices higher. Overall, prices increased +0.60% for the week, with Car segments up +0.69% and Truck/SUV segments up +0.51%. The Near Luxury Car segment had the largest price increase (+1.80%) for the week, followed by Sub-Compact Luxury Crossover (+1.37%).

	This Week	Last Week	2017-2019 Average (Same Week)
Car segments	+0.69%	+0.68%	-0.44%
Truck & SUV segments	+0.51%	+0.59%	-0.30%
Market	+0.60%	+0.64%	-0.37%

 

 

 

 

 Car Segments

 

 

• Overall, volume-weighted wholesale used car prices increased +0.69% for the week, continuing the positive trend for the 11th straight week.
• 8 of 9 car segments had prices increase – with only Prestige Luxury Car seeing prices decline for the week, down -0.16% from last week.
• The Near Luxury Car segment had the largest price increase for the week (+1.80%) followed by the Compact Car (+1.16%), and Sporty Car (+1.01%).

 

 

 

 

Truck Segments

 

 

• For the 8th consecutive week, all 13 Truck/SUV segments saw prices increase. Collectively, the Truck/SUV segments were up +0.51% for the week.
• The Sub-Compact Luxury Crossover segment had the largest price increase for Truck/SUV segments at +1.37%, followed by Sub-Compact Crossovers (+0.97%) and Compact Crossover/SUVs (+0.90%).
• Compact Luxury Crossovers/SUVs (+0.13%) had the smallest increase for the week.

 

 

 

 

Used Retail Prices & Listing Volumes

 

 

The average listing price for used vehicles continues to hit historic highs week-over-week, as the 14-day moving average now sits above $29,700. Analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots.

 

 

The number of used active listings continues to fall and now sits below 112,000 — the lowest point in the last 3 years. The 14-day moving average has now sits at ~111,800 units. Days-to-turn remains stable at ~48 days (unchanged from last week).

 

 

 

 

 

 

Volume

 

 

Used Retail

 

 

The CBB Listing Volume Index for used vehicles remained flat for the week. Currently the index sits at 0.87; dealers continue to deal with depleting inventory levels on both New and Used vehicles. Over the past 18 weeks, the used vehicle listing volume has seen significant declines.

 

 

 

 

Wholesale

 

 

The Canadian wholesale market continues to increase yet again. This past week, nearly all segments reported increasing values.
Supply remains low while demand continues to be strong on both sides of the border. Upstream channels continue to tap supply before it can be available at physical auctions.

 

 

Conversion rates remained strong this past week. Rates were observed into the 75% range on some lanes last week, with the few low kilometer, good condition units garnering high levels of bidding activity and premium pricing. In general, the quality of vehicles at auction remains somewhat below average as the supply of better-quality vehicles continues to be bought upstream.

 

 

The U.S. market exchange rate is similar compared to the previous week and remains favorable for exportation when price and demand are taken into consideration.

 

 

Canadian Black Book’s Market Insights

 

 

Economics & Government

 

 

• The Consumer Price Index rose 4.4% on a year-over-year basis in September, the fastest pace since February 2003 and up from a 4.1% gain in August.
• Year over year, consumers pay more for gasoline in September. Prices at the gas pump rose 32.8% compared to September last year.
• The Canadian dollar remains stable around the $0.81 to finish the week.

 

 

Industry News

 

 

• Toyota will spend $3.4 billion through 2030 to make automotive batteries in the U.S.
• Kia teases redesigned Sportage ahead of US debut next week.
• Polestar and Electrify America announced an agreement that will result in free fast charging over a period of two years for all Polestar 2 sold in the U.S.

 

 

U.S. Market

 

 

In the U.S., overall Car and Truck segments (+0.63%) increased for an eighth week; the prior week increased by +0.61%.

 

 

Volume-weighted Car segments increased +0.87%, compared to the prior week’s increase of +0.67%:

 

 

• All nine car segments reported gains again last week.
• Mid-Size Cars increased for a tenth week in a row with a gain of +1.29% last week, an increase from the prior week’s already large gain of +1.11%.
• Compact Cars have also now reported ten consecutive weeks of increases for an average weekly increase of +0.68%.

 

 

Volume-weighted Truck segments increased +0.52%; the previous week had an increase of +0.58%:

 

 

• All thirteen truck segments reported gains last week.
• Full-Size Van values continue to push higher, now reporting increases thirty-eight out of the last thirty-nine weeks. The average weekly increase is +0.56%.
• Compact Vans have also had consistent week-over-week increases, with gains reported in thirty-six out of the last thirty-eight weeks, for an average weekly gain of +0.65%.

 

 

 

CBB Weekly Automotive Market Update 10/26/2021. Canadian Black Book. (2021, October 26). Retrieved October 29, 2021, from https://www.canadianblackbook.com/blog/cbb-weekly-automotive-market-update-10-26-2021/.