Dealership cyberattacks surge, captive auto lenders gain ground, Ford's mixed Q3 results

Hey everyone. Really insightful episode of the Car Dealership Podcast dropped today:

Sanjiv Yajnik, President of Financial Services at Capital One, and Kris Gaerlan, President of Dallas Lease Returns discuss why people don't trust car dealers… and how to fix it.

This one is a real eye-opener — Stream it here.

— CDG

Used vehicle trade-in values have gotten decimated over the past year:

Nearly every brand has experienced a double-digit decline in value from last year...

The worst offender? Fiat, declining a whopping 21%.

The best performer? Toyota, dropping only 8%.

Unprecedented.

(Data via AccuTrade)

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

Captive lenders are tightening their grip on auto finance, becoming indispensable allies to dealerships by aligning financing offers with sales strategies.

While traditional lenders struggle with stricter underwriting and rising costs, captives like Ford Credit and GM Financial are expanding portfolios and offering flexible terms banks can’t match.

And with inventory levels swelling, dealerships are leaning on captives to keep cars moving off the lot. As long as consumer incentives remain in play, captives will likely continue to dominate dealership financing strategies … (Go deeper: 2 min. read)

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

Cyberattacks targeting the auto industry have surged since the CDK Global breach in June, forcing dealerships to double down on cybersecurity.

Attack attempts spiked 232% in July and remain 155% above the yearly average as of late Sept., with another uptick expected during the holiday season.

Dealers are now firmly in the crosshairs of bad actors, drawn to the sector’s vulnerabilities despite recent efforts to bolster defenses … (Go deeper: 2 min. read)

Tired of brokers overcharging and slow shipping?

Auto Hauler Exchange is connecting shippers and carriers directly on our online marketplace — no brokers allowed. With 5,000+ vetted carriers, dealers can move vehicles faster and explore new markets. On average, it takes just 5 days from listing to delivery. Don't know how long your vehicles are taking to ship? That’s another reason to try Auto Hauler Exchange.

Get analytics and reporting to better understand your costs and timelines. Best of all, it’s free to list your vehicles, with a transparent fee for shipping — no hidden costs.

Ready to speed up your shipping? Contact the Auto Hauler Exchange team to set up your shipper account today!

3. Ford tops revenue targets, but EV losses drag down profits

Ford’s Q3 results show the automaker walking a fine line — revenue exceeded expectations, but profits fell short as EV challenges weighed heavy.

With losses continuing in its Model e unit and plans scrapped for a three-row electric SUV, Ford faces tough decisions on where to focus next.

The question now is whether it can stabilize its EV ambitions without derailing its core business. … (Go deeper: 2 min. read)

• Nonprofit plans to lease electric semis at low rates.

• Tesla using China incentives to achieve promised results.

• Polestar criticizes Biden's proposed ban on China software.

• Behind the scenes of crashing used EV prices.

• Rivian launches 'car costumes' with Knight Rider spoof.

Thanks for reading everyone.

— CDG