FI showroom red and grey logo
MenuMENU
SearchSEARCH

CNW: Key Data Points Point to a Rough June

Several indicators in the first few weeks of June, including floor traffic, incentives levels and closing ratios, point to a rough road ahead for sales this month, according to CNW Research’s latest Retail Automotive Summary.

by Staff
June 14, 2011
3 min to read


Several indicators in the first few weeks of June, including floor traffic, incentives levels, and closing ratios, point to a rough road ahead for sales this month, according to CNW Research’s latest Retail Automotive Summary.

Compared with last year, floor traffic dropped 5.9 percent for the first half of the month. The report attributed the drop to the impact the March 11 earthquake is having on Japanese import brands. Additionally, closing ratios were down more than 8 percent vs. the same period last year, and 7.7 percent from May. Brands Hyundia-Kia, Ford and Chevrolet were able to buck the negative trend, reported CNW.

Ad Loading...

“Typically, when floor traffic slips, closing ratios are either flat or up because those who remain in the market are more likely to buy. Put simply, closing ratios should increase against a smaller more motivated base. Not so thus far in June,” CNW’s Art Spinella wrote.

Spinella also noted that confidence levels continue to weaken. CNW’s Jitters index, which measures concerns about home-centric issues, reflected a 1 percent month-over-month increase. The index showed improvement in categories such as “Federal Taxes,” “Child’s Education” and “Investments,” but other key categories, such as “Food Prices” and “Fuel Costs,” worsened.

A look at FICO scores, which registered their first month-over-month increase since January, also revealed just how skittish consumers are. “Two parts to the increase: Lower scoring consumers stayed away from dealerships and, simultaneously, some credit sources tightened up on their approvals,” Spinella wrote. “The increase in FICO may just be a blip, but it is one that the auto industry doesn’t need at the moment.”

The good news is subprime approvals continue to increase, jumping more than 90 percent from record lows in 2010. However, subprime approvals suffered their first month-over-month decline from May to June, with approvals dropping from 10.9 percent to 10.2 percent.

If June sales fall below the 1 million-unit mark for June, Spinella said he expects automakers to increase incentive spending as they did in May. Incentives for the previous month included higher-than-book trade values, cash from profits and discounts for lower scoring customers.

Ad Loading...

Currently, June sales are running at a 77.5 percent rate, up from May’s 72.4 percent and a recession-low of 52 percent in April 2009. Spinella noted that Ford has pulled back on fleet sales of the all-new Explorer because of heavy consumer demand, while Chevrolet diverted some production from fleet to retail for the same reason. Toyota and Honda dealers have all but stopped deliveries to business fleets at the local level, wrote Spinella.

“May was bad and the month-over-month data show exactly where the problem was. Aside from slow floor traffic and flattening closing ratios, Toyota and Honda supply problems hammered overall sales,” wrote Spinella, who noted that both companies suffered 32 and 27 percent declines in month-over-month sales, respectively. “And now Toyota is saying it may be until the end of the year before production gets back on track. Meanwhile, the Detroit Three took advantage of their Asian rivals’ problems and gained ground in month-over-month sales versus the industry.”

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 →