Interest in auto refinancing surges, dealer satisfaction jumps, hype around extended-range EVs grows

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—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. Drivers eye relief with possible auto loan refinancing

With the Fed’s recent rate drops, many consumers are hoping auto loan rates will follow suit, sparking interest in refinancing among those burdened by high monthly payments. 

• A TransUnion survey shows 76% of respondents are considering refinancing, with over half saying they’d do so to save $50 - $149 monthly. 

Digging deeper: While prime borrowers have a solid shot at refinancing, it’s a tougher game for subprime borrowers. And refinancing isn’t always simple — early payments in the loan term are mostly interest, so borrowers might end up paying more in the long run if they refinance. It’s even trickier if owners are “upside down” (owing more than the car’s worth).

For borrowers, potential relief is in sight—but maximizing savings will hinge on strategic timing and an honest view of their finances.

(Go deeper: 4 min. read)

While car owners might not be totally satisfied with their monthly payments, they do have a better view of the dealership car buying experience…

2. Dealer satisfaction jumps in 2024 on inventory, pricing improvements

Customer satisfaction with car dealers is ticking up as inventory levels rise and prices stabilize. 

• J.D. Power’s latest Sales Satisfaction Index shows an eight-point improvement this year, reaching 801 out of 1,000. 

• And with more cars on the lot, fewer customers are paying above MSRP — only 8% of mass-market buyers and 6% of premium buyers.

But it’s clear that it’s not just about pricing when it comes to high satisfaction scores. Dealers who really get what customers need and make the delivery process seamless see way higher ratings. But for those who miss the mark, scores can take a serious hit.

For dealers, the road to better customer loyalty lies in getting the details right.

(Go deeper: 3 min. read)

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As new car buyers enjoy better experiences, the used car market is also seeing price adjustments…

3. Wholesale car prices slide in Oct. as used retail sales accelerate

In Oct., wholesale prices for used cars slipped 1.9% from the previous month, marking the second straight month of declines after a summer rally, according to Manheim’s Used Vehicle Index. 

• Despite the drop, sales conversion rates stayed higher than usual for this time of year — a sign that demand is holding steady.

• Depreciation rates are slowing down too as prices gradually return to pre-pandemic norms.

• Looking closer, midsize cars saw a slight price increase, while SUVs and luxury vehicles had modest declines. 

Big picture: With days’ supply at Manheim running lower than usual, depreciation trends are likely to stay below average, helping further stabilize prices as we head into the end of the year.

(Go deeper: 2 min. read)

Speaking of depreciation trends…

4. What's really going on with EV depreciation?

Used EV prices have declined roughly 42% since reaching their peak in July 2022 and are down 10% compared to January 2024.

Why? Tesla’s aggressive discounts and the $25,000 federal tax credit cap, which has dealers adjusting prices to meet the threshold for quicker sales.

But even so, used EVs remain a niche, making up just 1.7% of pre-owned sales in Sept. compared to the larger new EV market.

And while these falling prices may seem steep, they’re not necessarily a massive loss for buyers. Tax credits and incentives offset some of the depreciation, and leasing is making a comeback as brands sweeten deals for EVs. 

Looking ahead: The $25,000 tax credit cap may act as a pricing floor, giving dealers a target for pricing strategies. But with average used EV prices still above $37,000, there’s likely room for more price drops before we reach an equilibrium.

(Go deeper: 4 min. read)

While the used EV market tries to find its footing, Scout Motors is stirring up fresh interest with a different approach…

5. Scout Motors reignites buzz around extended-range EVs

Scout Motors is bringing extended-range electric vehicles (EREVs) back into the conversation with its new Traveler SUV and Terra pickup, set to hit production in 2025. EREVs aim to bridge the gap between traditional hybrids and fully electric vehicles, offering a bridge to ease buyers into the EV world.

So, what makes an EREV different? While it has both an electric motor and a gas engine, the gas engine doesn’t control propulsion as it does in hybrids. Instead, it acts as a generator, recharging the battery to extend driving range.

But this isn’t entirely new territory. Models like the Chevy Volt and BMW i3 dabbled in EREV tech, though they didn’t catch on widely. But with big players like Stellantis, Nissan, and Hyundai planning EREV launches in the next few years, it could be a game-changer.

(Go deeper: 3 min. read)

🚨 One more thing… I have a big announcement!

I’m so stoked to announce that Sam D’Arc, COO at Zeigler Automotive Group will be hosting a brand new weekly segment on our podcast called the Car Dealership Guy Industry Spotlight!

The purpose of the segment:

Highlight the most compelling dealerships and innovative companies in automotive today, with each episode offering insights into key industry trends, best practices and future developments.

Stay tuned for the first official episode of the Car Dealership Guy Industry Spotlight, premiering on November 17.

LET’S GO!

• Nissan is slashing 6% of global workforce.

• Ford sees Oct. sales gains backed by trucks, but EVs drop.

• Stellantis leveraging deep discounts to move Jeep inventory.

• Volkswagen must correct 'decades of structural problems' says CEO.

• Rivian stumbles last quarter but is betting on a swift turnaround.

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

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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