Summary
- The automotive new vehicle market has slowed down in Q2 2024, defying predictions it would be one of the busiest times of the year, even as prices fluctuate on new vehicles
- Multiple factors have affected, or could be affecting, this slowdown
- Price uncertainty and rising costs are the two most prevalent factors
- The uncertain political climate is another area of concern
- The used market becoming more and more where consumers turn to get value-for-money is another factor
- Overall, we think that the pricing uncertainty can be tied almost directly to the costs of business getting passed to the consumer, and that this was always going to happen. We just didn’t know when.
2024 is turning out to be “one of those years” where everything that is expected to happen, doesn’t. In 2023, manufacturers predicted EV sales would strengthen, but in fact, they have slowed to a crawl.
In the example presented today, manufacturers also predicted a strong Spring-Summer season based on Q1 2024 results. Yet, the truth of the matter is that sales are slowing, not insignificantly but also not too majorly, often in the range of about 8 to 14% compared to the best month of Q1 2024.
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