Cox Issues 10 Predictions for 2023

By Staff Writer December 20, 2022 745
Cox Automotive Chief Economist Jonathan Smoke expects the year ahead to be one of transition for the auto industry.  Cox Automotive Chief Economist Jonathan Smoke expects the year ahead to be one of transition for the auto industry.

Used-vehicle values will see above-normal depreciation for a second-straight year. That’s one of the predictions made by Cox Automotive for the U.S. auto market in 2023.

By nearly all measures, 2022 was a difficult year for both the industry and the consumer, marked by historically low new-vehicle inventories, high prices, and stubborn inflation chipping away at monthly budgets. A relatively strong jobs market was a tailwind, but all the while, a hawkish Federal Reserve pushed rates higher, essentially riding the brakes as the auto industry struggled to gain momentum.

“This past year was challenging not only to forecast but for the industry to manage,” said Cox Automotive Chief Economist Jonathan Smoke. “As we look forward into 2023, we see one set of challenges being replaced by another. We expect the year ahead to be one of transition, as both the consumer and the industry move past the remnants of a global pandemic and set a new course for mid-decade growth.”

Guided by recent research, intelligence capabilities powered by DRiVEQ, the largest breadth of first-party data in the automotive ecosystem, and an unmatched team of analysts and experts,

Cox Automotive predicts:

#1: A Slow-Growing Economy Will Place Pressure on the Automotive Market.

#2 New-Vehicle Inventory Levels Will Continue to Increase.

#3: Total Retail Vehicle Sales Will Fall in 2023, as New-Vehicle Sales Grow, Used Sales Decline.

#4: Sales of Electric Vehicles in the U.S. Will Surpass 1 Million Units for the First Time.  

#5: Used-Vehicle Values Will See Above-Normal Depreciation for a Second-Straight Year. 

#6: Vehicle Affordability Will Be the Greatest Challenge Facing Vehicle Buyers. 

#7: All-Cash Deals Will Increase to Levels Not Seen in Decades.    

#8: Dealership Service Operations Volume and Revenue Climb.

#9: Half of Vehicle Buyers Will Engage With Digital Retailing Tools.

#10: Federal Incentives Will Encourage More Fleet Buyers to Consider Electrified Solutions. 

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Last modified on Tuesday, 27 December 2022 13:03