Week four of the 2023 Legislative Session came to a close last week and included the half way point of the 2023 Legislative Session. There are now less than three weeks remaining in the session. There have been big pushes regarding water and water conservation. Other pushes still include schools and teacher salaries. Budget meetings have finalized giving way to state budgets to be finalized. There was one new substantial motor vehicle bill that was released during week four that will help clarify the processes during internet and out of state sales. This is SB 172, Vehicle Sales Amendments from Senator Don Ipson. Watch for details on this bill as the session continues.
Read MoreAverage monthly payments and the average amount financed were higher for both new and usedvehicle loans in the fourth quarter of 2022 vs. a year ago.
But the increase was at a slower pace than prior quarters, possibly an indication of better availability – that’s the relatively good news in the just-published Quarterly Credit Industry Insights Report from TransUnion.
New car dealers continue to sing the blues. The pandemic limited sales because of supply chain bottlenecks resulting in rising prices. But there may be a silver lining for consumers willing to consider a used model.
Now that the supply chains are improving, prices remain high and consumers have taken notice. The Wall Street Journal reports the lack of affordable options has dampened new car sales over the last few months.
Only vehicles without keyless ignition are included in the recall
Honda issued a recall for more than 114,000 vehicles because their backup cameras might not display when the vehicle is in Reverse, which could cause a crash. The recall covers Fit hatchbacks from the 2018 through 2020 model years and HR-V SUVs from the 2019 through 2022 model years.
The problem is due to a faulty circuit in the vehicle’s audio system and affects only vehicles that have a physical ignition key instead of a push-button start.
With today’s high gas prices and the hassle of needing to go out of your way to find a gas station whenever your tank runs low, it can be incredibly annoying to drive a car that runs on fuel. Not to mention the growing awareness of the environmental harm that vehicles that run on gasoline or diesel have on the environment.
If you are looking to shift to an electric vehicle, but are wary of the high price point — there’s no need to fear. By simply investing in a used electric vehicle, you can enjoy all the benefits of owning an electric vehicle without the expensive upfront costs. Before browsing used car sites and car dealerships near you, there are a few things you should be aware of when buying this type of vehicle.
Federal Reserve Chairman Jerome Powell said Tuesday that inflation is beginning to ease, though he expects it to be a long process and cautioned that interest rates could rise more than markets anticipate if the economic data doesn’t cooperate.
“The disinflationary process, the process of getting inflation down, has begun and it’s begun in the goods sector, which is about a quarter of our economy,” the central bank chief said during an event in Washington, D.C. “But it has a long way to go. These are the very early stages.”
Interest rates are on the rise according to multiple sources, with Cox Automotive observing an increase from an average of 5.15 percent in December 2021 to 8.02 percent in December 2022. This is corroborated by a TransUnion report that noted monthly payments increasing in Q4 2022, as well as Edmunds, which reports APR on new car loans averaged 6.92 percent in January. For used vehicles, they averaged an even higher 10.57 percent APR. In August, those numbers reportedly sat at just 5.7 and 9.0 percent.
During the years following the COVID pandemic, many dealers, unable to remain disciplined during the challenging times, replaced good habits with bad ones. However, as Dale Pollak, Executive Vice President of Cox Automotive and Chairman and Founder of vAuto, argues, now is the time for storefronts to get back into shape, before the new market leaves them behind. CBT News anchor Jim Fitzpatrick got the chance to meet with Pollak to hear more of his insights at the 2023 NADA convention.
Used car prices keep getting cheaper — especially Teslas.
Prices for used Teslas fell significantly in January after the automaker slashed MSRPs on new models. Used electric vehicle sales overall are also picking up in general as a result of lower prices and new tax credits.
The large year-over-year gain was amplified by historic low fleet sales a year ago. Still, combined sales into large rental, commercial, and government fleets have seen seven consecutive months of double-digit, year-over-year increases. Sales into rental fleets were up 96% year over year, sales into commercial fleets were up 31%, and sales into government fleets were up 65%. Fleet sales were robust in January, juicing the total sales number.
Purchasing a luxury car comes with a set of pros and cons unique to this most expensive segment of the automotive market. Since buyers pay a premium price for new luxury cars that are often inflated compared to economical cars that perform nearly as well, these high-priced vehicles tend to rapidly depreciate in value. As a result, many shoppers choose to wait until luxury cars appear on the used car market for more reasonable asking prices. As much better values now than when first introduced to the public, used luxury cars have several other advantages including the fact that they generally have less mileage and were meticulously cared for by previous owners.
Auburn Hills, MI – February 5, 2023 – Volkswagen (OTCMKTS:VWAGY) is recalling 37,558 cars over an ongoing Takata airbag issue. The issue has resulted in close to 30 deaths and at least 400 injuries due to the propensity of these airbags to explode when deployed in a crash.
The recall comes on the back of a U.S. government investigation and affects the following vehicles:
2015 – 2016 Volkswagen Beetle
2015 – 2016 Volkswagen Beetle Convertible
A spike in the price of new cars has both buyers and auto dealers worried.
As The Wall Street Journal (WSJ) reported Saturday (Feb. 4), some dealers say customers were already hesitant due to high prices and a shortage of affordable cars. Rising interest rates and a drop in used car prices have made things worse.
Over 99% of original “Alpha” inflators have been replaced or accounted for, leaving only about 8,200 inflators in Honda/Acura vehicles on U.S. roads
So-called “Alpha” driver airbag inflators began being recalled in 2008
Honda has attempted to reach owners of these vehicles more than 18.3 million total times including mailed notifications, emails, phone calls and door-to-door canvassing visits.
Repair is free, along with free towing and free loaner vehicle, if needed
Honda is advising owners of certain 2001-2003 Acura and Honda vehicles containing recalled Takata driver airbag inflators to stop driving their vehicles until the free recall repairs have been made. Owners can arrange free towing or mobile repair (where available), with free loaner/rental vehicles also available by contacting Acura client relations, Honda customer service or their local authorized dealer.
Average monthly payments and the average amount financed were higher for both new and usedvehicle loans in the fourth quarter of 2022 vs. a year ago.
But the increase was at a slower pace than prior quarters, possibly an indication of better availability – that’s the relatively good news in the just-published Quarterly Credit Industry Insights Report from TransUnion.
Week three of the 2023 Legislative Session comes to a close and we will be approaching a half way point of the session next week. Appropriation meetings will end next week giving way to committee meetings both in the morning and afternoon. The process will begin moving much faster next week. As for this week of automotive legislation, here are the updates.
Motor Vehicle Dealer Requirements (HB194):
The original bill language prohibits a motor vehicle dealer from requiring a purchaser to pay, as a condition of the sale, a fee or charge in addition to the negotiated purchase, other than sales and use taxes, temporary permit fees, required title fees, and required registration fees. One item among others not initially included in the bill is Dealer Documentary Fees.
Read MoreDeadline to apply: February 16, 2023 3:00 pm CT
The NAAA Warren Young, Sr. Scholastic Foundation, Inc. has established the NAAA Warren Young, Sr. Scholastic Foundation, Inc. Scholarship Program to assist full-time employees, their children, step-children and grandchildren who plan to continue education in college or vocational school programs. Scholarships are offered each year for full-time study at an accredited institution of the student’s choice.
Read MoreOn January 11th, 2023, it was announced that Utah’s Congressman Blake Moore (R- CD1) had been elected to the House Ways and Means Committee. This is a huge win for taxpayers in Utah. Utah has never had a Republican member on the committee since statehood and there has never been a member on the committee from any state west of Texas.
Even with the incredible rise in used-car values, it’s still a wise financial move to buy a 3-year-old car instead of a brand-new one. That’s because they have many of the same safety and comfort features found in brand-new cars. This strategy also allows buyers to get a vehicle that’s almost equivalent to a new car, but at a lower price.
Immediately after the National Automobile Dealer Association wrapped up NADA Show 2023, the National Independent Automobile Dealers Association made a major move.
On Monday morning, NIADA and Buckeye Dealership Consulting announced an integration of the NIADA 20 Groups with Buckeye’s Dealer Performance Groups.
According to a news release, all existing Dealer Performance Groups, including those focusing on retail, buy-here, pay-here, service and finance, will move under the leadership of NIADA’s Dealer 20 Group program.
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