Car Dealership Guy Podcast

The Leasing Boom Continues, Hybrids Hit Their Stride, New Universal EV Charging Framework | The Weekly

Dec 7, 2024

Leasing is on the rise, strengthening captive lenders but casting a shadow with negative equity and delinquency concerns. A universal EV charging framework is set for 2025, promising to enhance the EV landscape. Meanwhile, hybrids are proving their reliability, closely matching gas-powered vehicles and driving impressive market growth. The trade-in process faces hurdles, particularly for dealers dealing with negative equity. The evolution of auto financing and vehicle dynamics highlights an exciting time in the industry!

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Quick takeaways

Leasing continues to rise among prime buyers, reflecting a shift in the auto finance landscape and challenges for subprime borrowers.

Hybrids are increasingly attracting customers from other brands, showcasing their reliability and performance compared to gas-powered vehicles and EVs.

Deep dives

Rising Leasing Trends in the Auto Industry

Leasing in the auto industry is on the rise, with nearly 24% of new vehicles leased in the most recent quarter, up from 20% last year. This increase is primarily driven by prime buyers, who are more inclined to lease vehicles, contrasting with the struggles faced by subprime buyers, who saw their loan market share decline. Captive lenders, although still leading in new car financing, are experiencing a slight market share drop, while banks and finance firms are gradually gaining ground. This shift in both leasing and lending highlights ongoing challenges for subprime borrowers, making it essential for dealers to navigate these changing dynamics to close sales effectively.

Leasing Trends and Challenges in Auto Lending

2min

The Evolution of Vehicle Trade-Ins and the Rise of Hybrids

4min

Welcome to The Weekly, your go-to roundup of the top five auto industry headlines of the week.

This week's top stories:

1. Leasing continued to rise in Q3 strengthening captive lenders

2. Negative equity and delinquencies cast a shadow on auto lending

3. Universal EV charging framework set to roll out in 2025

4. Hybrid reliability is neck and neck with gas-powered cars

5. Hybrids drive higher conquest rates in the auto market

Have a tip for our editorial team? Send us your scoop at insights@cardealershipguy.org.

This episode is brought to you by:

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