THE SHOP

March '21

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4 THE SHOP MARCH 2021 \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ © 2021 National Business Media, Inc. All rights reserved. THE SHOP (ISSN 2380-7415) is published monthly by National Business Media, Inc., 2800 W. Midway Blvd, Broomfield, CO 80020; (303) 469-0424; FAX (303) 469-5730. Subscription rates in the U.S.: One year, $45; Two years $80; Three years $108. Canada: One year, $76; Two years, $142; Three years, $201 (U.S. Funds). Mexico/International: One year, $98; Two years, $186; Three years, $267 (U.S. Funds). Periodicals Postage Paid at Broomfield, CO 80020-9998 and additional mailing offices. USPS/National Business Media Automatable Poly. POSTMASTER: Please send address changes to THE SHOP, PO Box 460651, Escondido, CA 92046-0651. All items submitted to THE SHOP become the sole property of THE SHOP and National Business Media, Inc. and may not be reproduced without the written consent of the publisher. Advertisers and/or their agencies, jointly and severally, assume all liability for printed advertisements in THE SHOP. Opinions expressed in THE SHOP may not necessarily reflect the opinion of the magazine's editor, its management or its advertisers. Letters, photographs and manuscripts welcome. f course, not everyone can afford to purchase a new vehicle these days, but those who can have been thinking big. Consumers in the financial position to buy a new car during the coronavirus pandemic aren't holding back on upsizing their purchases in favor of bigger vehicles with more amenities. According to car shopping analysis from Edmunds, the average down payment for a new vehicle climbed to $4,734 in the fourth quarter of 2020, compared to $4,458 in the third quarter and $4,329 a year ago. The average amount financed for new vehicle pur- chases increased as well, climbing to $35,373 in the fourth quarter, compared to $34,692 in the third quarter and $33,525 a year ago. Monthly payments also increased, reaching $581 on average in the fourth quarter compared to $568 in Q3 and $570 a year ago. Edmunds experts noted that financed vehicle purchases in December helped drive up the figures compared to the third quarter. December financed purchases represented the highest average monthly payment of the year at $587 and the highest average down payment of the year at $4,876. "Consumers historically lean toward purchasing pricey luxury cars, trucks and SUVs during the holiday season, which is partially why we're seeing this lift. But we're also just seeing a broader trend of consumers gravitating toward bigger purchases during the pandemic," said Jessica Caldwell, Edmunds' executive director of insights. "It might seem at odds with unemployment levels and the harsh financial conditions that so many Americans are finding themselves in right now, but the consumers who are buying new cars during the pandemic are clearly on the other side of the economic divide." They are likely qualifying for the lowest promotional rates, she noted, and feeling secure enough to put down more money to get the bigger vehicles and features that they want—aftermarket accessories included. Edmunds analysts noted that some of the trends in the new car market continue to trickle down to financed used vehicle purchases as well. Although data shows that the average down payment for a used vehicle slightly decreased in Q4 compared to Q3, it still represented a more than 22% increase year-over-year compared to Q4 of 2019. The average amount financed and average monthly payment for used vehicles also saw quarterly and yearly increases. "We're seeing more consumers who typically would fit the bill as new-car shoppers turning their focus on the used car market, thanks to a good supply of near-new, off- lease vehicles," said Caldwell. See Josh Poulson's column on establishing dealer relationships (page 44) to start taking advantage of this trend today. Down Payments On the Up O \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ DRIVER'S SEAT PUBLISHER STACY MARSHALL smarshall@nbm.com EXECUTIVE EDITOR JEF WHITE jwhite@nbm.com DIGITAL CONTENT EDITOR A.J. HECHT ahecht@nbm.com ART DIRECTOR IVETH GOMEZ igomez@nbm.com PRINT ADVERTISING DESIGNER LINDA CRANSTON linda@nbm.com SALES MANAGER WENDY MILES wmiles@nbm.com SALES SUPPORT ERIN GADDIE egaddie@nbm.com TECHNICAL CONTRIBUTOR MIKE MAVRIGIAN birchwdag@frontier.com CONTRIBUTING WRITERS JOHN CAROLLO, JOHN GUNNELL, JAMES MAXWELL, JOSH POULSON, JASON R. SAKURAI, BRETT SOLOMON NATIONAL BUSINESS MEDIA PRESIDENT DAVE POMEROY VICE PRESIDENT / AUDIENCE & EVENTS LORI FARSTAD VICE PRESIDENT / FINANCE KORI GONZALES, CPA DIRECTOR OF TECHNICAL SERVICE WOLF BUTLER MULTIMEDIA PRODUCER ALISON MCDONALD CEO & OWNER ROBERT H. WIEBER, JR. Jef White Executive Editor www.theshopmag.com

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