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Hendrick earns no. 1 in Reputation rankings, used car supply under pressure in 2025, auto credit access improves

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Welcome to The Weekly, your go-to roundup of the top five auto industry headlines of the week. Let’s dive in.

1. Hendrick Automotive dominates Reputation rankings for fourth straight year

Hendrick Automotive Group has claimed the top spot in Reputation’s 2024-25 North American Automotive Industry Rankings, leading the pack in customer sentiment, visibility, and engagement.

Ken Ganley Automotive took second place, with Holman Automotive close behind in third. Findlay Automotive came in fourth, and Swickard Automotive rounded out the top five.

Over on the public retailer side—Penske Automotive Group shook things up, knocking AutoNation out of first place and into second, followed by Group 1 Automotive, Sonic Automotive, and Asbury Automotive.

What’s the secret to staying on top? It’s all about keeping the customer at the center of everything.

  • Jeff Swickard, CEO of Swickard Auto Group, explained it well on the CDG Podcast: “The better you treat people, whether its customers or employees–they’re experts at knowing whether you care or don’t—they will come, customers, technicians, whoever.”

But according to Reputation, the top dealerships are nailing other basics like asking for feedback, responding to reviews, keeping online info up to date, personalizing the customer experience, and leveraging data.

And maintaining top tier customer satisfaction is more crucial now given the stickiness of new car prices…

2. New car prices rise four months in a row to near-record high

Last month, new car prices averaged $49,740—just $218 short of the all-time high set in December 2022, according to Kelley Blue Book.

  • Luxury vehicles led the charge, with sales of models priced over $80,000 making up a record 5.6% of total transactions. 

  • Full-size pickup trucks weren’t far behind, averaging $64,261 per sale.

The reason? End-of-year holidays tend to bring out big spenders, so it’s no surprise high-ticket models dominated. But the rising prices also hit buyers’ wallets hard. 

  • The average monthly payment climbed to $756, the highest in six months.

  • Incentives helped soften the blow, averaging 8% off transaction prices—or about $3,958 per vehicle. 

  • And EV buyers scored even bigger deals, with discounts averaging $6,700, pushing sales to a record 1.3 million units for the year.

Looking ahead—relief could be on the way. Auto loan rates dropped to 9.8% in December, the lowest in 18 months, and analysts expect them to fall further in 2025. Combined with rising incentives, prices and payments might finally start to ease.

For now, December proved one thing: when buyers feel confident, they’re willing to spend—even if it means stretching their budgets a little further.

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3. 2025 auto market: affordable new car inventory rises, used car supply shrinks

The auto market is set for another year of twists and turns, with shifts impacting both new and used car sales.

  • Bigger incentives and increased inventory boosted vehicle sales last year, but Cars.com’s 2024 Auto Market Year-In-Review suggests 2025 will bring a mix of opportunities and challenges.

  • On the new car side, about 62% of buyers now pay $600 or more a month—double pre-pandemic levels—and 35% pay over $800.

  • In the used car market—prices dropped 5% last year. But with inventory for 1- to 3-year old used cars shrinking 7%, prices could rise in 2025—especially during tax refund season.

The good news? New car inventory priced below $30,000 surged 64% year-over-year in 2024, with budget-friendly models like the Toyota Camry Hybrid selling in just 15 days, compared to 186 days for pricier options like the Dodge Challenger.

Bottom line—falling trade-in values and stubborn new car prices will challenge affordability, but incentives and potential auto loan rate drops could give dealers room to grow.

Speaking of auto loan rates—analysts report they have begun to drop steadily…

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4. Dec. sees slight credit access boost as auto loan rates decline

Auto credit availability improved for the fourth straight month in December, according to Cox Automotive’s Dealertrack All-Loans Index, which rose to 95.5—up 0.2% from November and 1.9% year-over-year.

Why this matters: This marks the highest level of credit access since early 2023, though conditions still vary based on where consumers apply for financing.

  • Credit unions led the way, loosening requirements throughout December, with auto finance companies following suit. 

  • However, captives—manufacturer-backed financing arms—tightened their approval criteria after months of easing, reflecting growing competition among lenders to regain market share.

Still—lower auto loan interest rates (down 23 basis points from November) and higher approval rates (up 40 basis points) played a big role in boosting credit access—-offsetting challenges like rising negative equity and fewer subprime approvals.

Down the road: Credit conditions are expected to keep improving. Cox Automotive predicts auto loan rates could drop by a full percentage point by tax refund season, potentially leading to higher approval rates and increased sales by mid-spring.

But it’s not all good news…

5. California wildfires likely to push auto insurance rates, loan deferrals higher

The wildfires tearing through Southern California have already burned 38,000 acres, damaged over 12,000 structures, and caused an estimated $150 billion in losses. Beyond the immediate devastation—they’re adding strain to California’s already expensive auto market.

Zooming out: Car insurance rates in the state are skyrocketing. 

  • The average annual cost of full-coverage insurance hit $2,575 in December 2024—up a staggering 47.8% from last year, according to Insurify. 

  • That’s far outpacing the national increase of 15.2%, which brought the average to $2,313.

But California’s insurance problems have been years in the making, driven by a string of natural disasters and regulatory challenges. Insurers like State Farm and Allstate stopped issuing new property policies last year, blaming growing risks and rising costs. And when the state lifted its moratorium on rate hikes, steep price increases followed.

Meanwhile—lenders are stepping up to support borrowers hardest hit by the wildfires. Toyota, Lexus, and Mazda Financial Services are offering payment deferral programs, giving affected drivers extra time to make their payments.

The downside? In some cases, borrowers with high interest rates accumulate so much unpaid interest during their deferrals that their loan principal barely shrinks for months.

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

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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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