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Hey everyone,
Did you know that incentive spend fell to 6.4% in July, its lowest level since January? Read this week’s Market Pulse to find out how dealers can adjust to communicate and connect with customers.
— CDG
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Welcome to The Weekly, a roundup of the top five auto industry headlines of the week.
FTC reinforces its focus on price transparency, announcing $4M settlement
Reinforcing its focus on price transparency, the Federal Trade Commission, joined by the state of Connecticut, announced on Wednesday a $4 million settlement with an auto dealership.
Driving the news: The FTC and Connecticut filed the 29-page case against Manchester City Nissan in January 2024 for alleged deceptive and unfair violations of Section 5 of the FTC Act.
The case stated that the dealership and six individuals participated in double-charging customers certification fees for certified pre-owned vehicles and not honoring advertised low prices. There were also accusations of attaching add-ons without the consumer's consent, totaling thousands of dollars. Additionally, the dealership allegedly collected excessive fees for registration and taxes.
Used vehicles under $20K hit average of 71K miles, 6 years old
As the price of 3-year-old used vehicles rises past $32,000, the age and mileage of lower-priced units are also rising.
An Edmunds study found that vehicles in the $15,000 to $20,000 range are now 6 years old and have roughly 71,000 miles.
Driving the news: Three-year-old used vehicles hit a record $32,461 in the second quarter, which Edmunds pointed out is a 4% increase year-over-year and a 15.5% increase since mid-2021. Over the past seven years, overall used vehicles under $20,000 have fallen from 55.2% of the market to just a 31.8% share. And vehicles over $50,000 are now at an 8% share.
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Niello Company hits 100% compliance with technicians’ MPI submissions
The Niello Company has reached 100% in submitting MPI videos across its stores and is now working toward its next goal: getting more of its customers to watch the videos that accompany their service quotes.
“Right now, we’re at 89-90%, not as high as I’d like because we think there’s something wrong with the website,” explained Tully Williams, Fixed Operations Director for the Niello Company, to host Sam D’Arc during Fixed Ops Friday on Daily Dealer Live.
How they got here: The Niello Company reached 100% compliance on its MPI by giving its technicians across its 10 stores a stake in completing the task.
Williams said he monitored which technicians landed in their 100 Club on video scoring and gave away $22,300 last month in a scoring contest. He’s now offering $500 to technicians with a 90 score or better for the next three months and $250 for those with scores in the 80s.
Nine vehicles found to have less than 4% chance of unexpected repair in CARFAX research
As the price of cars and also repairs increase, car buyers are increasingly considering the cost of maintenance as they research options.
Using historical reports, CARFAX compiled its list of vehicles ranked as the most reliable across three segments, with those being cars, SUVs, and trucks.
CARFAX just evaluated model years 2019-2023 for its reliability rankings. The most reliable vehicles on the list for the three segments had less than a 4% likelihood of unexpected repairs.
Ten models see insurance premiums drop 15% or more
After closing 2025 with insurance premiums down 6%, rates are projected to finish the year with a 1% increase.
But as car shoppers weigh different models and insurance costs, it’s worth noting that at least 10 models saw at least a 15% drop in annual premiums, including several EVs, according to Compare.com.
Some models present savings: While prices may be rising on average, Compare.com found at least 10 models that saw premiums fall between 15% and 19%, or $509 and $917.
The vehicle with the largest percentage decrease was the Hyundai IONIQ 5, which saw rates drop 19% or $704 to an annual cost of $2,990.
