Auto loan defaults increased to 0.95 percent in August, from 0.86 percent in July.
This is the second consecutive monthly increase.
Overall, the S&P Dow Jones Indices and Experian increased to 0.86 percent in August.
The only index to decline was bankcard defaults, which dropped to its lowest level since December 2016.
Three of the five major cities saw their default rates increase.
Average wholesale prices in August were once again up largely on the strength of truck prices, although another factor could be early impacts from Hurricane Harvey, which appeared to drive prices up at the end of the month, particularly in Texas.
According to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class, wholesale used vehicle prices in August averaged $10,947 – up 0.6 percent compared to July and up 1.9 percent relative to August 2016. Luxury cars had a standout month, with significant average price increases on both a monthly and annual basis.
Price softening was less evident than in previous months when holding constant for sale type, model-year age, mileage, and model class segment.
CarMax Inc. celebrated the grand opening of its new store in Langhorne, Pa.
This is the company’s fifth location in the Philadelphia area. The store is located at 1776 E Lincoln Hwy and has the capacity to stock approximately 240 used vehicles. In celebration of the Langhorne store opening, CarMax and The CarMax Foundation awarded $8,000 in donations and grants to the Lower Bucks Family YMCA. Support for this organization came at the recommendation of the Langhorne CarMax associates.
American Honda Motor Co. is recalling 646 2008-12 Accord, 2010 and 2012 Accord Crosstour, 2006-11 Civic, 2007-11 CR-V, 2009-12 Fit and Pilot, and 2010-12 Insight vehicles that received replacement passenger frontal air bag inflators.
One dealership may have incorrectly installed the replacement air bag inflators.
Honda will notify owners, and dealers will replace the passenger frontal air bag module assembly, free of charge.
The recall is expected to begin Oct. 1.
Honda's numbers for this recall are O07, Y0A, N06, G05, M04, Y01, and O09.
More dealers feel market conditions are weakening.
The Cox Automotive Dealer Sentiment Index fell to 45 in the third quarter, which means more dealers felt market conditions were currently weak relative to those who felt market conditions were strong.
Pricing pressure, increasing costs of doing business, declining profits, slow customer traffic and a lack of inventory, especially for independent dealers, are the factors that drive dealers to be less positive about the current market.
Dealers were more positive about the next three months. More dealers expected conditions to be strong in the future, compared to those who think conditions will be weak.
Derived from a quarterly survey that Cox Automotive issues to a representative sample of franchise and independent auto dealers, the index measures dealer perceptions of current retail auto sales and sales expectations for the next three months as “strong,” “average” or “weak.” The survey also asks dealers to rate new car sales and used car sales separately along with a variety of key drivers including consumer traffic.
Responses are used to calculate an index where any number over 50 indicates that more dealers view conditions as strong rather than weak.
CarMax Inc. is hiring to fill 50 positions for a new CarMax store in Colma, Calif., slated to open in November.
Job applicants hired for the Colma location will be the recipients of special compensation incentives and sign-on bonuses – the largest in CarMax history for these positions.
Entry-level associates are eligible for starting pay of up to $25 an hour. Additionally, all Colma associates will receive bonus compensation of $200 on every paycheck to help with cost of living expenses – a total of more than $5,000 every year.
The associates will also receive a new store bonus awarded semi-annually during the first two years of employment totaling $2,000.
Associates will receive the following sign-on bonuses for joining CarMax’s team:
$3,000 - $7,500 for automotive technicians (based on experience level)
$3,000 for sales consultants and service advisors
$1,500 for reconditioning associates
A Kansas man was sentenced to 28 months in federal prison for using stolen identities to obtain car financing.
The sentence is in addition to 20 months he has already served.
Reu Charles Chamberlain, of Wichita, Kan., pleaded guilty to two counts of wire fraud.
In his plea, he admitted he used a stolen identity at Eddy’s Chrysler Jeep Dodge in Wichita to qualify for a $48,902 loan to buy a 2016 Dodge Challenger. At Midway Motors in Wichita, he used a stolen identity to qualify for a $44,746 loan to buy a 2015 Dodge Challenger.
Consumers spend more time using their smartphones to conduct research prior to visiting a dealership, according to the J.D. Power 2017 New Auto Shopper Study.
The study analyzes how new-vehicle buyers use digital devices – tablets, smartphones and computers – to gather information prior to purchase, as well as which websites and apps they use during the shopping process. The study also examines which types of content new-vehicle buyers access during their shopping process and which content they find most useful.
This year, the study also explores the behavior of users of disruptive websites and apps that consumers use in their everyday life.
Users of disruptive websites and apps comprise 13 percent of new-vehicle buyers who use automotive shopping sites. They tend to be younger, but are not limited to the youngest generations – although 33 percent of Gen Y are users, 18 percent of Gen X and 6 percent of Boomers and Pre-Boomers also fall into the disruptive user category.
Michelin North America Inc. is recalling 185 Pilot Power 3 replacement sport motorcycle tires, size 180/55ZR17 (73W), manufactured between April 17, 2016 and May 7, 2016.
These tires are missing the required maximum load and corresponding inflation pressure information on the sidewall. As such, these tires fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) number 119, "New Pneumatic Tires-Other Than Passenger Cars."
Michelin will notify owners, and dealers will replace the tires, free of charge.
The recall is expected to begin Sept. 25
Black Book saw its Used Vehicle Retention Index dip slightly in August.
The Index fell to 112.6 in August from 113 in July.
The Black Book Used Vehicle Retention Index is calculated using Black Book’s published Wholesale Average value on two- to six-year-old used vehicles, as percent of original typically equipped MSRP.
The Index has now declined 3.9 percent year-over-year.
Compact cars, near-luxury cars, and subcompact cars each saw slight gains during August, despite the Index overall seeing a slight drop. It is expected that trucks and pickups and even smaller cars may see gains in the near term as dealers and individuals look to replace damage or destroyed vehicles from Hurricanes Harvey and Irma.