The Zacks Auto Retail and Wholesale industry is facing mixed conditions as demand remains strong, but rising affordability challenges and financing pressures could hinder sales. In August, new vehicle sales rose 3.3% month-over month, reducing dealer inventory to 2.68 million units, the lowest since spring 2025. Average new vehicle prices surpassed $50,000 for the first time, while the average used car listing price reached $27,239, up 7% year-over-year.
Access to auto credit improved, reaching its best level since November 2015; however, higher borrowing costs due to rising Treasury yields are exerting upward pressure on loan rates. EV sales in North America experienced a significant decline of 33% year-over-year in August, with approximately 140,000 units sold, largely affected by the expiration of federal tax credits and limited vehicle supply.
Despite these challenges, companies like Penske Automotive Group (PAG) and Lithia Motors (LAD) are strategically positioned for resilience, supported by acquisitions and digital enhancements. The auto retail industry’s outlook is now ranked #202 out of nearly 245 Zacks industries, indicating weak near-term prospects.
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