From The Newsroom – Cox Automotive May 27, 2022



Welcome to From the Newsrooma roundup of news from Cox Automotive and perspectives from its analysts and experts on topics dominating the automotive industry.

With the unofficial start of summer on the horizon, Cox Automotive is taking one final look back at 2021 in our annual Cox Automotive Market Insights and Outlook (CAMIO) flipbook. CAMIO provides a digital review of 2021 data and insights as well as 2022 Cox Automotive outlooks and forecasts for the new, used and wholesale markets plus certified pre-owned, fleet, credit and repossessions.

Cox Automotive is also launching the new Monthly Industry Update video series today with the goal of providing a holistic look at the auto industry’s performance each month in video format.

BMW and Toyota returned to their long-held spots as America’s most-shopped vehicle brands in their respective segments, after being upended late last year, according to the Q1 2022 Kelley Blue Book Brand Watch™ reports. All three Brand Watch reports are now available non-luxury, luxury and electrified.

In this newsletter issue, we also report the latest on wholesale used-vehicle prices in the mid-month Mannheim Used Vehicle Value Index, a key indicator for what is coming in the retail used-vehicle market. We also take a look at inventory and pricing data for the new and used markets and report the latest Xtime service department metrics.

Worth noting: Cox Automotive has delivered on its promise of providing a vibrant wholesale marketplace that could deliver value on both sides of the transaction with Upside™.

We hope you find this selection of articles informative and helpful. Visit the Cox Automotive Newsroom for the latest on the industry’s most important topics, and bookmark the Auto Market Snapshot, a one-stop dashboard for the data our team is tracking. Register now for the Cox Automotive Mid-Year Review on Tuesday, June 28.

2022 COX AUTOMOTIVE MARKET INSIGHTS AND OUTLOOK FLIPBOOK AVAILABLE

The Cox Automotive Economic and Industry insights team’s goal is to help automotive industry stakeholders make the best decisions for the future. The 2022 Cox Automotive Market Insights & Outlook (CAMIO) flipbook is an easy to read overview of the auto industry’s performance in 2021, and our team’s expectations for the year ahead. This digital almanac provides readers a quick, easy to navigate flipbook that can also be downloaded as a PDF and easily printed.

Check out the just-published CAMIO flipbook, a digital look back at 2021 data and insights and the source for 2022 Cox Automotive outlooks and forecasts for the new, used and wholesale markets plus certified pre-owned, fleet, credit and repossessions. Earlier versions of the CAMIO can be found in the Cox Automotive Newsroom.

COX AUTOMOTIVE LAUNCHES MONTHLY INDUSTRY UPDATE VIDEO SERIES

The Cox Automotive Monthly Industry Update is a new monthly presentation offered by the Cox Automotive Industry Insights team. The goal is to provide a holistic look at the auto industry’s performance each month in video format.

In this month’s video, Cox Automotive Research Manager Rebecca Rydzewski is joined by Senior Economist Charlie Chesbrough and Chris Frey, senior manager of economic and industry insights.

Watch the video as the team covers both new- and used-vehicle sales and inventory and talks about the economic factors impacting the auto industry.

BMW AND TOYOTA ARE BACK ON TOP AS AMERICA’S MOST-SHOPPED VEHICLE BRANDS, ACCORDING TO KELLEY BLUE BOOK

BMW and Toyota returned to their long-held spots as America’s most-shopped vehicle brands in their respective segments, after being upended late last year, according to the Q1 2022 Kelley Blue Book Brand Watch™ reports.

The Kelley Blue Book Brand Watch™ reports are a quarterly barometer of which brands are hot and which ones are not. Kelley Blue Book produces separate reports for non-luxury and luxury brands each quarter. A special look at electrified vehicle shopping is also included.

Read the press release to learn more about how brands ranked in the Q1 report. Watch a video of Cox Automotive Executive Analyst Michelle Krebs and Senior Research and Market Intelligence Manager Vanessa Ton discussing what is driving the opinions and buying decisions of consumers shopping on KBB.com.

INVENTORY LEVELS HOLD STEADY IN NEW AND USED MARKETS

The monthly Cox Automotive analysis of vAuto Available Inventory data shows inventory levels for both the new and used markets barely budging in April. Continued supply chain disruptions are impacting the new-vehicle supply. Meanwhile, a spring sales bounce that has been late coming and more spread out than expected has led to used-vehicle supply holding largely steady.

While inventory is stuck in place, prices resumed their upward trajectory, with new-vehicle listing prices climbing above $45,000 again and used-vehicle listing prices rising above $28,000.

Check out the new vehicle and used vehicle Data Points to learn where inventory levels, days’ supply and average listing prices stood as the month of May began.

DEALERSHIP SERVICE REVENUE HITS A RECORD IN APRIL WITH LESS ACTIVITY, ACCORDING TO XTIME METRICS

Service revenue increased at US franchise dealerships in April on fewer repair order tickets, according to the latest Cox Automotive analysis of Xtime metrics. The Repair Order Volume Index decreased month over month in April. Meanwhile, the Repair Order Revenue Index increased month over month to the index’s highest level, dating back to January 2018.

Here’s a look at the monthly Xtime volume and revenue metrics designed to showcase average service department performance over time.

WHOLESALE USED-VEHICLE PRICES INCREASE IN THE FIRST HALF OF MAY FROM SEASONAL ADJUSTMENT

Wholesale used-vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) increased 0.7% in the first 15 days of May compared to the full month of April. This brought the Manheim Used Vehicle Value Index to 222.7, up 9.7% from May 2021. The non-adjusted price change in the first half of May was an increase of 1.0% compared to April, leaving the unadjusted average price up 12.1% year over year.

Most major market segments saw seasonally adjusted prices that were higher year over year in the first half of May. Pickups were the exception, with a 2.8% decline year over year. Vans had the largest increase at 27.0%, and both non-luxury car segments outpaced the overall industry in seasonally adjusted year-over-year gains.

Read the Data Point for additional details on major segment performance and wholesale supply.

COX AUTOMOTIVE’S UPSIDE DELIVERS A VIBRANT WHOLESALE MARKETPLACE WITH ADVANTAGES FOR BUYERS AND SELLERS

To some dealers, it sounded too good to be true: a vibrant wholesale marketplace that could deliver value on both sides of the transaction. But that’s exactly what Cox Automotive set out to provide with Upside™. With the first Upside Direct sales attracting strong participation, Cox Automotive is confident in saying that the promise of Upside has become a reality. Upside sellers made money above the Kelley Blue Book® Instant Cash Offer value on every vehicle listed. At the same time, buyers acquired a range of much-needed inventory, including some great deals. Overall, sellers on Upside Direct received 99.4% of the Manheim Market Report value on average for their vehicles while getting approximately $1,500 over the recommended trade-in value.

Find out more about how Upside Direct sales deliver enhanced profitability to sellers and value to buyers looking for much-needed inventory.

REGISTER NOW TO ATTEND THE MID-YEAR REVIEW

The Cox Automotive Mid-Year Review will be hosted on Tuesday, June 28, 11 am EDT, shortly before the auto industry closes the book on a first half of highs and lows.

During this 90-minute webinar, you will hear how the auto industry performed in the first half of the year and how the Cox Automotive team sees the industry progressing.

Our experts and analysts, led by Chief Economist Jonathan Smoke, will review our 2022 first-half forecasts for new- and used-vehicle sales. We will also provide insights and data to help quantify how the consumer, the industry and the economy performed in the first half of the year.

Register to attendand if you can’t make the live webinar, be sure to register anyway, and we’ll send you the recording after the event.

Looking ahead: Cox Automotive will publish its May US auto sales forecast on Wednesday, May 25, ahead of Sales Day on Wednesday, June 1. Check back later this week for commentary on Memorial Day sales.

Additional commentary will be published after the major automakers report sales on June 1. We will also report May certified-preowned sales the week of June 6, and the May Manheim Used Vehicle Value Index will be published on Tuesday, June 7.

If you have questions or want to connect with the Cox Automotive PR team in the meantime, feel free to contact us.

SELF QUOTES

“High fuel prices and a few high-profile product launches really shuffled the order in the Q1 Kelley Blue Book Brand Watch. Shopping for traditional sedans, which are often more affordable and efficient than SUVs and trucks, jumped up in Q1 after years of declining. Fuel prices clearly influenced shopping behavior.”

– Vanessa Ton, senior research and market intelligence manager for Cox Automotive, commenting on the Kelley Blue Book Brand Watch reports.

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