CNW: Pent-Up Demand Beginning to Dwindle
Pent-up demand hit a low point in July, according to CNW Research. The firm estimates that 94,000 consumers are looking to make a vehicle acquisition within six months vs. 103,500 a year ago.
BANDON, Ore. — Pent-up demand hit a low point this month, according to CNW Research. The firm estimates that 94,000 consumers are looking to make a vehicle acquisition within six months vs. 103,500 a year ago.
For the auto industry, this year has been one of drawing down high levels of pent-up demand, the firm reported. In January and February, there was an 8% to 11% increase vs. 2013 in the number of consumers who were ready and willing to make a new-vehicle acquisition. All other months, however, saw the gap between last year and this year diminishing.
“These lower numbers can be offset by only a few actions on the part of automakers, the most often turned to being more discounts to get fresh potential customers to buy earlier than they intended or simply enter the market for a new car or truck,” wrote Art Spinella in his firm’s monthly enewsletter. “Needless to say, this is expensive and disruptive to the bottom line.”
Spinella predicted that the industry will have to face the problem of low pent-up demand in the next two years. “With more than 95% of all new vehicles now under some sort of incentive compared to under 70% in prerecession times, automakers will have to continue spending massive dollars to draw new customers and rely less on pent-up demand.”
More Dealer Ops

Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
Timing the Market Can Hurt Long-Term Program Performance
For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →
Survey Reveals What Won't Fix What's Breaking Car Sales
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →
IA American Appoints Two Execs
Senior vice presidents of the company's agent and dealer channels chosen to support general agents and help auto dealers with sales and performance.
Read More →
Cox Automotive Acquires Inspection Firm
Full ownership of Alliance Inspection Management, or AiM, meant to unlock growth for Manheim inspection capabilities
Read More →
Assurant Expands Partnership With Holman
Extended collaboration delivers training, products and performance development to 30 newly acquired Holman dealerships
Read More →
Franchises, Throughput Down in First Half
A handful of states see franchise growth through June, while EV sales per store boost overall business in U.S.
Read More →