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

A fan of $100 bills sitting on a white envelope
Auto Financeby Hannah MitchellAugust 12, 2026

July Was Hot for Auto Borrowers

Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.

Read More →
stacks of coins, a calculator, paperwork, and a pair of glasses in the background, text Lender Experience Drives Dealer Decisions, F&I and Showroom
Auto Financeby Lauren LawrenceAugust 12, 2026

Dealer Lender Preferences Revealed

When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.

Read More →
man sitting at desk using a calculator
Auto Financeby Lauren LawrenceAugust 10, 2026

Auto Refi Savings Surge

Consumers with 84-month auto loan terms who refinanced saved the most on monthly payments, according to a new report by auto refinancing provider Caribou.

Read More →
Ad Loading...
Tiny toy car in front of small stacks of coins
Auto Financeby Hannah MitchellAugust 5, 2026

Subaru Enters Lending Business

The automaker follows other brands in adding captive financing in the U.S., and says the move will strengthen its position here.

Read More →
Man climbing ladder in front of mountain landscape.
Auto Financeby Lauren LawrenceAugust 3, 2026

Positive Equity Reaches Record High

Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.

Read More →
Photo of document next to calculator and inkpen
Auto FinanceJuly 20, 2026

Dealerships Are Paying the Price for Extended Car Loans

Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.

Read More →
Ad Loading...
silver car in background with hand in front holding out a set of keys, Trade-In Trouble, F&I and Showroom
Auto Financeby Lauren LawrenceJuly 20, 2026

Trade-Ins in Negative Equity Reach New Heights

As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.

Read More →
Two men in suit jackets shaking hands in front of a new-looking white vehicle
Auto Financeby Hannah MitchellJuly 15, 2026

Auto Credit Plentiful

June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.

Read More →
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 →
Ad Loading...
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 →