Navigating the Turbulence: We're Back With The Numbers

Good morning,

Welcome back to the Topmarq Dealer Weekly, your snapshot of industry news and happenings. Our apologies for the long break this year, but we spent the time making this newsletter better with access to data you can’t get anywhere else. We hope you like the changes!

As a belated Memorial Day Special we’re diving back in and are excited to show off some of the upgrades over the next few weeks. In addition to the quick-read headlines and in-depth breakdowns of the major stories of the week, we will be adding vehicle and market analytics data directly from our platform which processes 100,000’s of vehicle listings every day.

Finally, this week we discuss a seismic shift in consumer preferences, tech innovations that are breaking the mold, and a reshuffling in the used-vehicle retailer rankings.

Cheers!

Surge in Used Car Sales

Used car sales have seen a record-breaking surge in 2023, accounting for nearly 75% of all vehicle sales. Despite soaring new car prices, consumer demand for used cars remained high. This trend is attributed to the global semiconductor shortage that affected the production of new cars. While we see inventory at the < $30,000 range recovering, average transaction prices have resisted the price decline for the time being. We’ll be watching for changes here over the next ~6 months.

Interestingly, the cost of a used vehicle exceeded that of a new one for the first time ever, yet this didn't dampen the strong sales performance in the used market. Many dealerships have been capitalizing on this trend, with increased focus on their used car inventories​¹​.

Headlines

• Know limits of EV credits and which trim levels qualify - AutoNews

• Ford CEO says China main EV rival, not GM, Toyota - Reuters

• Texas bill to ban 'forced financing' may be out of time - AutoNews

• PODCAST: CarDealershipGuy interviews CEO of Cars.com, discusses market shifts, EVs, DTC, and more - CDG Podcast

• Tesla Model Y was the world's best-selling car in Q1 - AutoNews

• Dealer-backed VC fund raises $13 million, lower than target - AutoNews

• PODCAST: Matthew Phillips, CEO, Car Pros Automotive Group - DNT

• Data Innovation That Drives Bottom Line Results - Cox Auto

• PODCAST: Brett Hopkins, CEO, Ken Garff Automotive Group - DNT

• Turning Data into Actionable Intelligence - Cox Auto

Tech Innovations in Dealerships

In a notable update from the tech front, Tekion, a dealership management system startup, took an unconventional approach to fine-tuning its product. The company purchased two California dealerships to use as real-world laboratories for its developers. Tekion's team was stationed at these dealerships to observe, answer questions, and adjust their technology based on the needs and wants of dealership personnel.

This unique venture shaped Tekion's technology beyond what traditional pilot programs could have accomplished, demonstrating a promising direction for tech innovation in the auto retailing industry​²​. As a member of the auto-tech cohort, we’re big fans of companies finding ways to get in the trenches with customers.

Changes in Used Vehicle Retailer Rankings

Automotive News recently released a new list ranking retailers by used-vehicle-only sales. The list includes a mix of national and regional used-vehicle retailers, as well as online used-vehicle retailers that have seen significant growth during the COVID-19 pandemic. CarMax topped the list, selling 807,823 used vehicles in the fiscal year ending Feb. 28, 2023, despite a 13% decline from the previous year. Other notable retailers included Carvana, DriveTime Automotive, CarShop, EchoPark Automotive, America's Car-Mart, Vroom, Tricolor Holdings, and Shift Technologies, each with their respective sales volumes and growth rates​³​.

For those data nerds out there… More now than ever if there are metrics or breakdowns you’d like to see reach out by responding to this email!

Average Used Vehicle List Prices By Make

Most Popular Used Vehicle Models vs. % of Total of Mfg Listings

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