FI showroom red and grey logo
MenuMENU
SearchSEARCH

CNW: Industry Has Reached ‘Razor-Thin Balance'

In its latest newsletter, CNW Research says that even the slightest economic issue could upset the auto industry in 2015.

by Staff
January 8, 2015
2 min to read


BANDON, Ore. — CNW Research used an interesting analogy to describe its expectations for 2015 sales, a year in which it believes factors like fuel prices could tip sales either way.

“It’s called ‘hard pan,’ and in some parts of the country, it is just below the surface. Dry, it feels like rock, but when you add rain, it becomes mushy and as slick as snot,” wrote CNW’s Art Spinella in the research firm’s monthly newsletter.

Ad Loading...

“The 2015 auto industry is being built on hard pan, according to our annual Purchase Path study,” he continued. “Everything is resting on hard pan that even the slightest economic rain could easily upset.”

A key factor will be the willingness of consumers to make big-ticket purchases like automobiles, with Spinella predicting a significant decline in home-centric jitters, “laying the foundation for a solid sales year.”

The firm said a new 13% increase in floor traffic is likely for the full calendar year, as a growing percentage of consumers become key market participants, which the firm defined as shoppers who are financially capable, are fully able from a credit/work standpoint, and are at least somewhat willing to make a new-vehicle acquisition.

CNW also expects closing ratios to jump to 9.65% from calendar year 2014, laying the groundwork for a 17.1 million unit year. “A more stable sales force at dealerships, heavier incentives at the dealership and a rebound in used-car prices will all aide in that increase,” Spinella added.

Also during 2014, consumers paid about $2,800 more for certified pre-owned models than comparably aged non-certified pre-owned used cars. CNW predicts that premium will rise in 2015, hitting approximately $3,100 for the full year. The firm also believes subprime approvals will see a 12.75% increase in 2015, driven in part by automakers’ captive finance companies looking to expand sales.

More Auto Finance

Woman's hands holding an wallet empty of cash
Auto Financeby Hannah MitchellJuly 1, 2026

Automotive Consumers Sink Further in Debt

Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.

Read More →
Three men smiling for headshots
Auto Financeby Lauren LawrenceJuly 1, 2026

Porsche Financial Services Shifts Structure

After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.

Read More →
$100 bill and magnifying glass on top of paper that says insurance policy terms and conditions.
F&Iby Lauren LawrenceJune 29, 2026

Tariffs Could Raise Insurance Premiums

As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.

Read More →
Ad Loading...
Red toy car sitting on top of coins.
Auto Financeby Lauren LawrenceJune 24, 2026

Smaller Loans, Longer Terms

The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.

Read More →
Photo of man holding a car key
Auto Financeby Hannah MitchellJune 17, 2026

New Cars a Tad More Affordable

May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.

Read More →
Photo of a white toy car next to piles of coins
Auto Financeby Hannah MitchellJune 8, 2026

First-Quarter Sees Long Auto Loan Growth

Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.

Read More →
Ad Loading...
Assurant, Mastering Credit Friction, Sales Series, Expert Trainer Josh Krach
Auto FinanceMay 29, 2026

Mastering Credit Friction

In this video, Josh Krach explains how to turn credit friction into an advantage.

Read More →
Couple talking with auto salesman next to new car inside dealership
Auto Financeby Hannah MitchellMay 20, 2026

April Less Affordable

Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.

Read More →
Photo of a loan contract on a desk
Auto Financeby Hannah MitchellMay 13, 2026

Auto Lenders, Consumers on a Tightrope

April borrowing data shows that more consumers are bending over backward to buy vehicles, though subprime lending cooled off for the month.

Read More →
Ad Loading...
black background with orange text saying Alec Hagey Toyota Financial Services President and CEO effective April 6 with picture of Alec Hagey
Auto Financeby Lauren LawrenceApril 6, 2026

Toyota Financial Services President Replaced

Scott Cooke has served in various roles with Toyota Financial Services for over 20 years, including president and CEO, which he retires from on June 30.

Read More →