Ford's new dealer incentives, TikTok car interest spikes, troubling negative equity trends

Hey, everyone. New data reveals that certified pre-owned (CPO) vehicle sales are dropping because there aren't enough off-lease and trade-in units.

This has led some automakers to shake things up —

They're expanding eligibility for their CPO cars, especially for leases.

Right now, only a handful of automakers offer CPO leasing, but it’s a smart move to help lower those monthly payments on used cars, which are still averaging over $500.

—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. Oct. new car days’ supply mirrors pre-pandemic “norm”

The new vehicle market is starting to feel a lot more and more like 2019, according to recent data.

At the beginning of Oct., the days’ supply of new cars (the number of days needed to sell all the new vehicles in inventory) sits at 81—just a day more than it was in 2019.

Why? 2025 vehicles are flooding dealer lots. Which means —  there’s a real push to clear out older inventory. 

As a result, incentives have jumped to 7.3% of the average transaction price, which is $3,522. While not back to 2019 levels just yet, it’s a steady, gradual improvement.

(Go deeper: 2 min. read)

But incentives aren’t just for consumers — dealers can qualify for some programs as well…

2. Ford giving dealers up to $22,500 for F-150 Lightning restocks

Ford is rolling out new dealer incentives through a pilot program that tests the brand’s Retail Replenishment Centers (RRC). 

The details: Dealers can earn $1,000 for each F-150 Lightning stocked through a Ford RRC, with a cap of 15 units, although the Lightning Pro trim is excluded.

• For orders exceeding 9 units, the incentive increases to $1,500 per vehicle, allowing for a total of $22,500 if dealers restock the maximum number of trucks.

Ford aims to test the logistics and efficiencies of these RRCs, designed to cut distribution costs and speed up customer delivery times. But as EV demand grows in key markets, the automaker also wants to clean house and gear up for the 2025 model-year Lightning pickups.

(Go deeper: 2 min. read)

Dealers and manufacturers keep asking: How do we rebuild our lease portfolios in 2024 and beyond?

Leasing is crucial for establishing loyal, repeat customers and increasing their lifetime value. While the auto market is seeing a return to leasing, current numbers remain below pre-pandemic levels and lease returns are expected to decline.

To understand the evolving leasing market and its impact on the automotive retail ecosystem, TransUnion conducted a study on post-lease consumer behaviors, brand loyalty, the influence of electric vehicles, and more.

Explore TransUnion’s The State of Auto Leasing for pertinent research findings and actionable insights, and learn how to stabilize and rebuild lease portfolios in today’s unique environment.

But Ford isn’t the only automaker capitalizing on growing EV demand…

3. Electric vehicle sales charge ahead, defying market doubts

Electric vehicle (EV) sales showed robust growth in Q3 despite concerns about waning consumer interest. 

By the numbers: According to Cox Automotive, Q3 2024 witnessed an 11% year-over-year increase, with approximately 346,309 EVs sold — 5% more than in Q2 —pushing market share to a record 8.9%. 

• This growth is bolstered by significant incentives averaging over 12% of the average transaction price (ATP), as well as the “leasing loophole” that has expanded access to discounts for all buyers. 

• While Tesla led the charge per usual — GM's sales soared nearly 60%. 

While price concerns and infrastructure improvements are ongoing challenges, the segment's upward trajectory shows that the EV transition is far from stalling.

(Go deeper: 3 min. read)

EVs are also finding an enthusiastic audience on TikTok…

4. Auto brands and dealers drive big engagement on TikTok

Car content is really taking off on TikTok.

A recent report shows that 89% of TikTok users have an interest in cars, with the hashtag #Car booming at a 25% increase in video views year-over-year.

On top of that — two-thirds of car enthusiasts on the platform are looking to buy a vehicle in the next two years, making TikTok a hot spot for brands aiming to connect with potential buyers.

The report also digs into some interesting buyer behaviors. Turns out, 13% of TikTokers are serious brand loyalists — they're 1.7 times more likely to buy after watching car content on the app. And get this — 29% are already thinking about going electric or hybrid.

Big picture: TikTok is proving to be a game-changer for both manufacturers and retailers, who are making waves and racking up millions of likes.

(Go deeper: 3 min. read)

And lastly, Edmunds’ latest “consumer check up” revealed a troubling trend…

5. Negative auto loan equity is creeping up toward all-time high

According to the latest data, a growing number of U.S. car owners owe more on their auto loans than their vehicles are worth. 

Quick facts: Negative equity is on the rise, with 24.2% of trade-ins having this issue, up from 23.9% in Q2 2024 and significantly higher than 18.5% in Q3 2023. 

• While still below the peak of 31.9% in Q1 2021, the average amount owed on upside-down loans has hit a record high of $6,458.

• What's even more alarming is that 22% of vehicle owners with negative equity owe over $10,000, with 7.5% owing more than $15,000. 

Jessica Caldwell, Edmunds' head of insights, points out that a mix of market factors and consumer decisions during the inventory crunch of 2021 – 2022 has led to this situation.

And the impact is widespread, affecting all vehicle types, not just luxury models. 

Bottom line: This growing negative equity can dampen consumer confidence and make it harder for dealerships to find high-quality used cars, as owners may be reluctant to trade in vehicles they owe too much on.

(Go deeper: 2 min read)

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

• CarNow is searching for a (remote) Regional Sales Manager.

• Riverside Auto Group is on the hunt for a Controller located near Rome, GA.

  Ron Marhofer Auto Family needs a Automotive Service BDC Manager in Ohio.

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

Hunting? View over 250 listings on the Job Board.

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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