2019 was a strong year for the US economy. There was record-low unemployment. Personal savings rates continued to climb. Small business optimism remained high. But 2019 was also full of economic challenges. Costs are rising faster than wages. 59% of Americans live paycheck to paycheck. Rumblings of a possible recession have ebbed and flowed this year. So what does this mean for car dealers in 2020?
At this year’s Navigate conference, George Augustaitis—CarGurus Director of Industry Analytics and Economics—shared the four key macroeconomic trends that will shape 2020 and what dealers should do to prepare. In this video, you’ll learn:
- The health of 2019’s auto industry: CPO sales are up 2.4% and new vehicle sales are down 1.2% year-over-year.
- Why the 2008 economic downturn is still impacting affordable used car inventory: The number of cars that cost less than $10K won’t return back to normal until 2022. George will tell you how to mange this gap in inventory.
- How student loan debt has completely changed the way millennials buy cars: Student loans make up a higher percentage of total household debt (minus housing debt) than anything else—credit cards, auto loans, and other debt.