- Topmarq Dealer Weekly
- Posts
- Volume 01, Edition 4
Good morning,
Welcome to Topmarq Dealer Weekly, your snapshot of industry news and happenings. Read on to learn what a G-Wagon has in common with a Sonata Hybrid. We say goodbye to some Hemi engines and welcome a new auto plant in North Carolina. There may also be worry ahead for subprime auto lenders.
What else would you like us to cover in Topmarq Dealer Weekly? Contact us with your suggestions; we’d love your input.
Cheers!
Market at a Glance
Prices up for fuel-sippers
Hybrids and electrics among the leaders
A G-Wagon surprise
This week, we take a different look at the used car market by checking out how iseecars.com views things. While the site reports February prices increased 35% year-over-year (mostly consistent with other sources), it drills down on the action with specific models and eye-opening numbers.
Gas prices were already on the upswing last month, with the Russia-Ukraine war only making things worse. Record per gallon costs are pushing car shoppers into more fuel-efficient vehicles. While this isn’t much of a surprise, big price increases for fuel sippers are.
At the head of the pack is the Hyundai Sonata Hybrid, with an average used retail of $24,913 in February. This is a whopping $9,457 (61.2%) increase from the previous February. The rental car mainstay Chevrolet Spark takes the silver with a 54.5% increase ($16,949 from $10,969) over the same period.
And the Nissan Leaf, once noteworthy for legendary depreciation, has seen a strong comeback, with average pre-owned examples selling for $24,393 last month—an $8,579 or 54.3% bump from 12 months ago.
While 9 out of the 10 vehicles on the list make sense (EVs, hybrids, and econoboxes), there’s one head-scratcher: the Mercedes-Benz G-Class (G-Wagon). Its $215,946 average price increased by $73,963 (52.1%) over the past year. Perhaps some Bitcoin holders decided to cash out.
Bye-Bye Hemi. It Was Good While It Lasted
It wasn’t too long ago that the introduction of a new six-cylinder engine would be followed by a few yawns and some blank stares. But today’s car industry is moving fast. So, Stellantis’ introduction last week of a pair of all-new 3.0L turbocharged inline sixes with 400 and 500 horsepower is significant. While the maker of Jeeps and Dodges (and other brands) hasn’t gotten into specifics, these powerplants will likely take over for the company’s 5.7L and 6.4L Hemi engines. The new “Hurricane” engine is not your father’s slant-six.
The move to ax V-8s is gaining speed as Toyota recently made a twin-turbo V-6 the sole powerplant for its new Tundra pickup and upcoming Sequoia SUV.
VinFast Gets Real
Efforts for Vietnamese automaker VinFast to set up shop in the U.S. have been swirling around for almost two years. Some pundits have equated these efforts to sell two Pininfarina-designed SUVs here as vaporware. But, it appears that VinFast is the real deal, as the automaker has inked an agreement to spend up to $4 billion on a factory in North Carolina. VinFast has already been taking reservations for its VF 8 and VF 9 models, with hopes of delivering Vietnam-built units at the end of the year. The company plans to switch to U.S. production for the American market in 2024 when the new factory comes online.
VinFast
Subprime Auto Loans Hit Trouble Spot
Is an increase in subprime auto loan delinquencies a canary in the coal mine for problems ahead? MarketWatch reports Deutsche Bank data citing that late payments (over 60 days) on high-interest car loans are at their highest (4.15%) since April 2020. Fitch Ratings reports similar information but at a higher 4.8% delinquency rate. Unlike two years ago, pandemic assistance in the form of government checks and payment extensions has dried up.