Buying a car was easier last month, Asian brands report strong Nov. sales, GM's China dilemma

Hey everyone. What Carvana has gone through over the past 2 years is unprecedented —

From the brink of bankruptcy to a nearly full recovery — the company’s market cap is close to $54 billion today.

Which is why I’m stoked to share that Carvana co-founder and CEO Ernie Garcia will join me on the Car Dealership Guy podcast this Friday (!)

Let me know what I should ask him by sending your questions to [email protected].

— CDG

Auto loan rejection rates officially hit an 11-year high:

The average rejection rate for auto loans reached 11.4%** in Oct. (on an annual basis)...

One reason?

The share of borrowers with FICO scores < 680 have increased their applications for auto loans by 17.5% year-over-year.

Basically, more people with worse credit are trying to buy cars, but not enough lenders want to lend them money.

And so, the cycle continues…

(Data source: NY Fed / TransUnion)

1. Dealerships raised the bar for customer satisfaction last month

Consumers had a smoother car buying process in Nov., with dealerships delivering on customer experience as inventories grow.

The details:

• CDK Global’s Ease of Purchase score climbed to 91% — just shy of its record high.

• Nearly two-thirds of shoppers drove away with a car already in stock, cutting down on wait times and extra trips.

• While trade-in negotiations were still a sticking point, easier pricing talks helped smooth things out.

As inventory levels recover, dealerships are setting expectations high for overall customer experience — just in time for the holidays … (Go deeper: 3 min. read)

2. Asian import brands see strong U.S. sales in Nov. after difficult Q3

Asian automakers rallied in Nov., with big names like Toyota, Hyundai, and Honda posting impressive sales gains.

• Toyota led the pack, breaking a two-month slump with over 207,000 units sold — up 4.8% year-over-year and 11.5% against Oct.

• Hyundai’s brands saw a nearly 15% year-over-year boost, while Honda logged a 10% monthly jump.

• But not all brands shared in the success — Nissan’s challenges continue to weigh on its outlook.

Bottom line: Last month’s results show that demand for reliable imports remains strong … (Go deeper: 3 min. read)

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3. GM announces $5B charge from losses in China

GM’s China troubles are piling up, with the automaker bracing for over $5 billion in charges tied to its joint venture with SAIC Motors.

Between the lines: Once a cash cow, the partnership has hit a rough patch — sales are down 59% this year, and GM has been bleeding.

To cut costs, they’re closing plants and slashing inventory in hopes of turning things around.

But with domestic Chinese brands surging — GM isn’t the only global player facing an uphill battle abroad … (Go deeper: 3 min. read)

• 'Radical' targets toppled Tavares at Stellantis, sources say.

• GM adds over 132,000 heavy-duty pickups to recall for tailgates that can open unexpectedly.

• U.S. to loan $7.54B to Stellantis joint venture for 2 EV battery plants.

• The most awkward and absurd car names in automotive history.

• Time to rethink automotive regulations.

Thanks for reading everyone.

— CDG