Industry Insider Says FCA Buyback Program Should Help Dealers

Jessica Caldwell, Director of Industry Analysis at Edmunds.com spoke with DrivingSales News about trends in auto sales. We’ve reported previously that retail auto sales have been sizzling. The SAAR has sat comfortably above 17 million during 2015 and in a phone interview; Caldwell said that the rest of the year should be a chance to cruise to the goal of 17 million units sold. In a phone interview Caldwell said, “The first half has been really excellent and we haven’t seen the first seven months have a 17 million plus SAAR since the year 2000. Sales won’t necessarily skyrocket from this point, but I think that they are going to stay strong – it seems like the fundamentals are there.”

Caldwell also said that Crossover SUVS are the hottest segment on the market. She noted that dealers already know how popular they are. Speaking by phone Caldwell speaking of dealers said “that they (dealers) probably know that they can’t keep on their lot very much but something that consumers want, especially Baby Boomers who are looking to downsize. Maybe their kids have gone off to college, maybe they want a bit of a smaller SUV but they sill like SUVs.”

From Baby Boomers, Caldwell talked about Millennials, who she says often look at a vehicle like they do a cell phone or other piece of technology. Caldwell explained, “Leasing fits into the way that Millennials think about ownership. You know, you have a monthly payment and then after a few years you get rid of it and you upgrade to something else. So I think that’s something for dealers to keep in mind.”

Caldwell also touched on the FCA subject. The automaker is going to buyback hundreds of thousands of vehicles in the near future. Caldwell said that’s good news for dealer since the customers will be, “doing something with the dealership and a lot of times that could lead to a sale. In terms of sales you’re going to have been at dealerships that may not have been there anyways at that time. I think that it is a bit of a sales opportunity.”

Do your observations line up with what Caldwell said? Are crossovers difficult to keep on your lot and are the buys often baby boomers? Have you furthermore seen more millennials coming to your store, opting to upgrade their vehicle via lease just as they upgrade their cell phones?