Q3 new car sales forecast, used car affordability shows positive signs, automakers battle for brand loyalty

Hey everyone. Crazy how many vehicle recalls are triggered by one thing: stickers.

That’s right — first, it was the misprinted tire pressure sticker from Mercedes (that caused a stop-sale), and then Toyota recalled nearly 34,000 vehicles due to incorrect load-carrying-capacity stickers. Even Rivian had missing stickers back in May, and now…

The Hyundai Tuscon is the latest to fall victim by failing to secure an airbag warning sticker.

Just goes to show nothing gets past regulators — not even stickers.

— CDG

1. New car sales expected to cool in Sept. causing further slide in Q3

New vehicle sales are forecasted to decline this quarter, with Edmunds expecting a 2.3% year-over-year drop to 3.9 million units. September sales have been especially weak, down 11% year-over-year, contributing to the overall slowdown.

Elevated vehicle prices and limited incentives are keeping many buyers on the sidelines, with Stellantis leading the declines at 10.5%. However, Honda and Ford are bucking the trend, posting gains of 9.9% and 1.1%, respectively.

Big picture: Despite improving inventory levels, many consumers are still waiting for better deals before making a purchase, leaving the market in a cautious state … Read more

2. Used car buyers are finally being rewarded for their patience

Used car prices are declining after a prolonged period of high costs. In August, one-to-five-year-old used vehicles averaged $32,672, a 4.7% drop compared to last year.

The intrigue: A notable driver of this trend is the increase in models priced below $20,000, which now make up 16.5% of the market—a 30% jump from 2023.

While overall prices are still significantly higher than pre-pandemic levels, the growing availability of more affordable options is fueling demand and boosting used car sales as 2024 winds down … Read more

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3. Automakers reclaim brand loyalty as inventory improves

Some automakers are regaining brand loyalty as inventory levels improve, according to the J.D. Power 2024 U.S. Automotive Brand Loyalty Study.

Driving the news: Porsche, Toyota, and Ford continue to dominate their respective categories for the third consecutive year, with Ford boasting the highest loyalty rate among truck owners at 65.1%. In the SUV segment, Lexus and Honda top the loyalty rankings for premium and mass-market brands.

Yet — despite these gains, the study hints at growing challenges, with nearly half of Americans indicating they're likely to switch brands in the future, signaling that brand loyalty could become more elusive as competition, especially in the EV sector, intensifies … Read more

• Auto industry preps for unprecedented USMCA review as crucial elections loom.

• The big, hidden risk of syncing your phone with a rental car infotainment system.

• Ford reaches tentative local deal to avert UAW strike at Dearborn Tool and Die.

• Ford exec says most drivers don’t realize the major perks of EVs like charging at home.

• Donald Trump's new proposal to the auto industry.

Thanks for reading everyone.

— CDG