Car market checkup: Inventory, incentives, lending, and more...

Hey, everyone. We’re throwing a party 👀

I’m excited to host a private celebration in New Orleans during the 2025 NADA Show.

It’s going to be a special evening in the French Quarter to connect, celebrate, and unwind with some of the top dealers and auto industry leaders.

And we’ve got some amazing things lined up for the night—delicious gourmet bites, top-shelf cocktails, a cigar bar … and a few fun surprises.

Space is limited, but we’ve opened up a small waitlist here. You can also check out my LinkedIn announcement for more details.

Big shout-out to NNN Pro for sponsoring this event. It’s going to be a fantastic evening.

—CDG

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Each week, I curate the top 5 automotive industry headlines based on the topics CDG readers engaged with the most on social media. Let’s get started.

1. Auto loan delinquencies are on the rise again

Auto loan delinquencies ticked up in August, hitting both prime and subprime borrowers, Morgan Stanley reports.

Why it matters: U.S. consumers have been a buffer against recession, but cracks are forming as the labor market weakens. The economy's resilience against looming threats may be wearing thin.

By the numbers:

• Subprime: 60+ day delinquencies rose 26 basis points month-over-month and 20 basis points year-over-year to 5.17%.

• Prime: 60+ day delinquencies edged up 1 basis point from July and 9 basis points from last year to 0.50%.

Between the lines: Borrowers with loans from the past two years are slipping further behind, with subprime loans from 2023 hit hardest by soaring rates and vehicle prices.

(Read the full article)

Rising delinquencies, particularly in subprime, suggest U.S. consumer strength may be nearing its limit. No wonder lenders continue to tighten…

2. Auto financing gets tougher as incentives ramp up

Auto credit availability took another hit in August, declining for the fifth straight month and signaling mounting challenges for consumers looking to finance their next car, says Cox Auto.

What's happening: Approval rates for auto loans dropped from July and negative equity rose — raising more red flags about the financial health of American households.

Why it matters: Tighter lending criteria is shutting more Americans out of car ownership, a critical factor for economic stability and mobility. Studies show car owners are twice as likely to land a job, four times more likely to keep it, and can earn up to three times more than those without a vehicle.

Quick facts:

• Credit unions have responded most aggressively by tightening their lending standards.

• Auto-focused finance companies showed slightly more leniency.

• New car loans through franchised dealers experienced the least tightening.

• Used loans saw the most tightening during the month.

(Read the full article)

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Even as credit tightens, consumers are getting a break on prices. New car transaction prices have fallen for nearly a year, averaging $47,870 in August, as dealers boost incentives to clear out 2024 models…

3. New car inventory dips in Aug.—bringing down days' supply

U.S. new-vehicle inventory dipped slightly in August to 2.91 million units, down from 2.94 million in July, but remains 914,000 vehicles higher than a year ago, according to Cox Auto. With the average new car days' supply now at 72, manufacturers are feeling pressure to move vehicles quickly.

Why it matters: Higher inventory is prompting automakers to ramp up incentives, like discounts and low-interest loans, to maintain market share. But brand-by-brand, the approaches are very different.

• Audi, Infiniti, and Nissan have increased incentives above 10% of transaction prices.

• Meanwhile Toyota, with nine of the top ten fastest-selling models, keeps incentives low due to strong demand.

The intrigue: Stellantis faces particularly elevated inventory levels—over 300 days' supply for models like the Jeep Renegade—forcing higher incentives, but Dodge took the opposite approach, cutting incentives—a risky move given the 323-day supply of the Hornet.

(Read the full article)

Stellantis has been struggling with an inventory glut for months, and dealers have finally had enough…

4. Stellantis strikes back after dealer outcry

Stellantis responded to sharp criticism from its National Dealer Council (SNDC) after an open letter accused CEO Carlos Tavares of steering the company toward “disaster.”

Driving the news: The SNDC's letter blasted Tavares for policies in 2023 that it claimed led to “devastating” consequences. 

• Stellantis fired back, calling the letter a “public personal attack” and stating that such issues should have been addressed privately. 

• The company also says its road to recovery is already working, pointing to a 21% sales increase in August and a 10% reduction in dealer inventory since June.

Zooming out: The SNDC did not demand Tavares’ resignation but accused him of prioritizing profits over brand health, citing layoffs, plant closures, and a 48% drop in profits from 2023. 

(Read the full article)

But the hurdles for Stellantis don’t stop there…

5. More than 1.2 million Ram 1500 trucks recalled in the U.S.

Stellantis has recalled over 1.2 million Ram 1500s in the U.S. (1.5 million worldwide) due to a software bug that could affect the vehicle's stability and cause a crash.

The details: The issue is caused by a software malfunction in the pickup’s antilock braking systems (ABS) control module that can disable the truck’s electronic stability control (ESC) system, according to the National Highway Traffic Safety Administration (NHTSA).

• Failure of the ESC system can cause the vehicle to crash without warning.   

• Recall models include 2019 and 2021 – 2024 model-year Ram 1500 pickups.

The good news? Stellantis officials said the brakes will work if the software fails and they aren't aware of any crashes or injuries from the issue.    

Next steps: Dealers will update the control module software in the affected vehicles free of charge. 

(Read the full article)

We’ve got tons of great jobs hitting the CDG Job Board right now:

• Foureyes is looking for a fully (remote) account executive.

• Gregg Young Automotive Group needs a GM-certified technician in Iowa. 

• Ron Marhofer Auto Family is looking for an F&I manager in Ohio.

Looking to hire? Add your roles today—it’s 100% free.

That’s a wrap for now – make sure you’re following along on X, LinkedIn and IG for more real-time updates.

🚨 Hey you! Before you go…

Thanks for reading. Hit reply and let me know if you found this week-in-review valuable or have any feedback. I’ll see you next weekend.

—CDG

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