Dealership cyberattacks surge, brand loyalty climbs, used car prices drop faster than new

Hey, everyone. Big news —-

We’re launching a new segment on the Car Dealership Guy Podcast — with a fresh host joining the team. He’s a seasoned pro managing dealerships nationwide, bringing sharp insights and a great personality to the mic.

I’ll still be here with my regular episodes — but get ready for even more content and transparency in the car industry.

Stay tuned for the official announcement!

—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. Automotive brand loyalty shifts closer to pre-pandemic levels

With car lots filling up again more drivers are sticking with brands they know and trust. Aug. saw brand loyalty hit 50.3%, marking 16 straight months of growth, reports S&P Global Mobility.

The reasons? Bigger new car inventories and more leasing options. Since early 2022, inventory has nearly tripled, giving buyers more chances to find what they want without switching brands. 

• Leasing has also taken off, making up almost a quarter of new car deals, and repeat leases have ticked up meaningfully, especially in luxury.

Although – loyalty shifts across powertrains. Gas drivers mostly stick with gas, hybrids are split, and while Tesla fans remain loyal, only half of EV owners buy another one.

Big picture: As new car supply and automaker incentives continue to grow, pre-pandemic levels of brand loyalty are well within reach.

(Go deeper: 3 min. read)

This momentum is also helping captive auto lenders (the financing arm of a specific automaker) grow their market share…

2. Captives gain ground by offering the flexibility other lenders can't

While some traditional lenders struggle to keep up, captives are emerging as key partners for dealerships, especially in new car sales, offering flexibility that banks and credit unions can’t match.

What’s happening: Captives are expanding retail loans and using targeted incentives, helping them weather tighter credit conditions while maintaining dealer volume. 

• Ford Credit’s share of Ford’s U.S. vehicle financing rose to 55%, and GM Financials’ originations reached $14.3 billion — up from last year.

Why it matters: Captives have a unique edge — they can offer subsidized financing options, like 0% annual percentage rates, which are tailored to help dealers move inventory. However, traditional lenders face rising costs and regulatory pressures, limiting their competitiveness. 

Basically — as long as demand is incentivized, captives will stay central to dealer financing strategies.

But there’s a side effect:

(Go deeper: 2 min. read)

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Stronger automaker incentives are also partially responsible for cooling off used car prices…

3. Price gap between new and used cars breaks record

The price gap between new and used cars has reached a record $20,365, with used vehicles now averaging $27,177 compared to $47,542 for new ones, according to Edmunds.

Quick facts:

• New vehicle prices have hit a plateau, even as incentives climb — averaging $1,744 in Q3, more than double last year’s discounts. 

• Yet, these discounts aren’t moving inventory as fast, with new cars now sitting on lots for an average of 57 days, the longest in three years. 

• Meanwhile, used car prices are declining 6.2% year-over-year.

It’s an encouraging sign for used car demand…

But for buyers entering the market after many years away, historically elevated monthly payments across the board could be a rude awakening. 

(Go deeper: 1 min. read)

Speaking of monthly payments — auto loan delinquencies are climbing among prime borrowers.

4. Red flag: Prime borrowers are slipping on their auto loan payments

Auto loan delinquencies are elevated. And even prime borrowers — those with solid credit — are now missing payments at higher rates than before the pandemic, while subprime delinquencies are gradually normalizing.

What it means: Inflation, high interest rates, and rising living costs are stretching even well-qualified borrowers thin, according to KBRA’s auto loan report.

• In Sept., prime borrower delinquencies ticked up, with 30 - 59 day delinquencies at 1.21% and 60+ day delinquencies at 0.56%. 

But also…

At the end of the day, prime delinquencies are a warning sign — lower-risk borrowers, often a buffer against economic swings, are now being eroded financially. 

(Go deeper: 2 min. read)

5. Cyberattacks against dealers up 155% year-over-year at the end of Sept.

The CDK Global breach incident in June exposed the auto industry’s vulnerabilities, drawing more unwanted attention even as cybersecurity efforts get better.

The result? Cyber incidents surged 232% by July and are still 155% above average, according to Proton Dealership IT. And dealers should be ready for another potential spike during the holiday season.

As threats stay elevated, heightened awareness will be crucial for keeping dealerships compliant and customers’ data safe.

(Go deeper: 2 min. read)

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

• Dealerslink: Automotive Software Sales Executive, Northeast in Boston, MA.

• Ron Marhofer Auto Family: F&I Manager in Ohio.

• Riverside Auto Group: Controller located near Rome, Georgia.

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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