The DCG Market Outlook Report
Dave Cantin Group is proud to present the first annual DCG Market Outlook Report (MOR), a data driven 360-degree look at the trends that will matter in the US automotive industry in 2024.
Dealerships are facing unfamiliar choices and new barriers that have no historic counterparts in which to glean data and direction from. DCG and Kaiser have curated a unique dataset that allows dealerships and advisors to better understand and adjust for current and emerging issues that will directly affect the retail dealership segment.
This report is built on market-backed data as well as informed opinions from authorities, leaders, top analysts, and key players across the industry.
Consumer Delays in Vehicle Purchases Anticipated to Unlock Demand in 2024
Due to higher rates for the past two years, consumers have remained conservative when it comes to vehicles purchases in the hopes the rates will decrease. Our research shows that with projected reductions in interest rates, these consumers will likely unlock pent up demand and result in greater vehicle sales; especially for buyers who plan to purchase through traditional or alternative financing models.
About 68% of respondents plan to purchase a new vehicle in 2024. They have refrained from purchasing in the past two years due to high interest rates. The anticipated rate drops in mid-to-late 2024 will serve as a catalyst to unlocking greater vehicle sales this year.
Approximately 27% of respondents say they will continue to delay the purchase of a new vehicle. Another 16% of respondents cited the interest rates are still too high for them to consider a new vehicle purchase and are skeptical that the rates will decrease this year.
Declining Interest in EV
Research indicates consumer interest in Hybrids is outpacing interest in EVs with certain geographic regions making more EV and Hybrid purchases than others. Consumers are gravitating away from traditional Internal Combustion Engines (ICE) as anticipated, but the hype around EV has simmered compared to that of Hybrid.
Although EV still trends upward in consumer interest, we’re seeing Hybrid interest out pace EV interest by more than double. It is certain, however, that consumer interest in traditional ICE vehicles is seeing a continued decrease as more automotive brands lean into more sustainable options.
- ICE (Internal Combustion Engine 84%)
- Hybrid (11%)
- EV (5%)
- ICE (Internal Combustion Engine 56%)
- Hybrid (30%)
- EV (13%)
EV Incentives Will Certainly be Impacted by the 2024 Election
The 2024 election will have the greatest long-term impact on EV incentives and EPA’s mandates; the CARS Rule, direct sales, and China EV regulation will likely be unaffected. Both primary political parties have polarizing plans of action when it comes to incentives for EV purchases and how consumers should be rewarded. OEMs might have to switch production priorities based on potential changes to the rebate structure dependent on the election outcome.