New + used car market pulse, Jaguar’s confusing rebrand, the end of EV tax credits

Go deeper: 5 min. read

November 23, 2024

Hey, everyone. More Americans are struggling to keep up with car payments as subprime 60+ delinquency rates hit an all-time high of 6.23%, according to Fitch Ratings.

But Wall Street is unfazed. Sales of bonds tied to subprime borrowers reached nearly $40 billion by Oct., a 17% increase over all of 2023, says JPMorgan Chase.

It's a calculated bet from investors who hope the economy's strength will outweigh financial strain. But, it could unravel if job losses rise.

—CDG

First time reading the Car Dealership Guy Newsletter? Subscribe here.

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. New car inventory skyrockets but prices hold stable in Oct.

New car lots are filling up, with inventory jumping 26.4% year-over-year, according to Cars Commerce marketplace data. 

More cars on hand should mean more buyers, right? Not quite. Demand has barely nudged, and prices are likely to blame. 

  • The average new car still lists for $49,000 — down just 0.5% from 2023.

  • Even sub-$30,000 models, the fastest-growing segment with a 51.8% spike in listings, still make up only 13% of the market.

  • The result? Cars are sitting on lots longer — an average of 72 days now, up 37.4% from last year.

The big picture: Inventory growth is great for consumer choice, but until prices adjust meaningfully, especially for budget models, the disconnect between supply and affordability will keep a lid on demand.

But there’s a different story going on in the used car market…

2.  Used car market sees higher sales and lower market days’ supply in Oct.

The used car market is heating up.

  • Retail sales surged to 1.4 million units in Oct., up nearly 7% from Sept. and 12% year-over-year, marking the strongest monthly volume in three years, reported Cox Auto.

  • Inventory inched up to 2.17 million vehicles by early Nov., but fast turnover pushed days’ supply down to 45. For cars under $15K, supply is even tighter at just 33 days, well below the industry average.

  • The average used car lists for $25,499 — down 4% year-over-year but still high by historical standards. 

Big picture: Strong demand is driving the used car market forward, even as affordability pinches consumers. As dealers work to find and balance high-margin inventory — it's clear that the used car market isn’t hitting the brakes anytime soon.

Outdated payment systems are draining dealership profits.

Dealer Pay isn’t just a credit card terminal—it’s a fully tailored payment solution built to meet your dealership’s unique needs.

Our cutting-edge technology streamlines payments across your entire operation, from the service department to the cashier’s office. Say goodbye to hidden fees and manual work, and hello to detailed reporting, seamless integrations, and built-in compliance features.

Stop letting inefficient processors eat into your profits. With Dealer Pay, you’ll save time, cut costs, and boost financial performance—guaranteed.

Dealer Pay isn’t just another terminal; it’s the smarter way to manage payments across your entire operation.

Used EVs, in particular, are having a moment…

3. Experts weigh in on predictions for the 2025 used EV market

The used EV market is hitting its stride, shifting from niche to mainstream as prices drop and acceptance grows. At Used Car Week 2024, industry leaders looked back on the past year and shared their vision for the future of used EVs.

  • Used EV supply and demand have stabilized, with inventory turnover matching that of traditional gas-powered cars. 

  • Prices, which tumbled last year due to Tesla’s aggressive discounts, have found their footing, making pre-owned EVs more appealing than ever.

But the key to profitability for dealers is speed — moving used EVs quickly and addressing unique challenges like limited parts availability and educating consumers on charging and maintenance are still top priorities.

Between the lines: There will likely be a short-term spike in demand as tax credits phase out. But with used EV volumes set to grow 5X over the next four years, the market’s momentum is undeniable.

Speaking of EV tax credits…

4. Ending EV tax credit to drive 27% drop in demand — report

The EV market faces a major shift as President-elect Donald Trump’s plan to end federal tax credits looms. 

  • While EVs only make up 8.95% of U.S. market share, the potential impact is striking: experts project a 27% drop in EV sales — roughly 317,000 units, according to a Bloomberg report.

  • That’s a small dent in the industry’s overall 15.5 million units sold in 2023, but a sharp blow to EV momentum.

And for automakers? The stakes couldn’t be higher. 

Having sunk billions into electrification, brands aren’t turning back. The good news? Even without the credits, EV adoption is still projected to grow.

The bottom line: Removing tax credits will sting, but the EV transition is too entrenched to reverse course.

Have a tip for our editorial team? Send us your scoop at [email protected].

And one brand is taking their EV ambitions down a somewhat confusing path…

5. Jaguar's new brand identity for ultra-luxury EVs swings and misses

Jaguar is turning the page on its 89-year history with a complete rebrand, aiming to reposition itself as a high-end luxury EV maker competing with Rolls Royce and Bentley. 

Its new identity leans heavily on aesthetics: a refreshed logo, bold primary colors, a "strikethrough" graphic motif, and a modern typeface — all debuting at Miami Art Week under the theme “Copy Nothing.”

But the backlash has been swift. 

  • Critics argue that Jaguar’s rollout misses the mark by focusing on abstract branding instead of what matters most — cars. 

  • With its lineup down to a single model, the F-Pace SUV, and no hints of its future vehicle designs, the reveal has left car buyers and dealers questioning the overall strategy.

While lifestyle branding may work for luxury fashion, applying it to an automotive rebrand runs the risk of alienating core audiences. For Jaguar, this gamble could make its uphill battle in the ultra-luxury market even steeper.

3 great opportunities hitting the CDG Job Board right now:

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

🚨 Hey you! Before you go…

Did you like this edition of the newsletter?

Tell us why or why not - it's the only way we get better

Login or Subscribe to participate in polls.

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

Want to advertise with CDG? Click here.

Want to be considered as a guest on the CDG podcast? Right this way.

Want to pitch a story for the newsletter? Share it here.

Reply

or to participate.