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.
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.
“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.
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

Mastering Credit Friction
In this video, Josh Krach explains how to turn credit friction into an advantage.
Read More →
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 →
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 →
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 →
Permission or Approval: When to Notify Finance Sources
Credit card down payments, multiple vehicle purchases and even straw purchases can be completed without committing bank fraud, as long as you tell the bank first.
Read More →
At-Risk Auto Borrowers Drive Looser Credit Access
Cox Automotive’s index shows the subprime segment, long loan terms, negative-equity borrowers and down payment amounts all grew in February despite ever-higher vehicle prices.
Read More →
Auto Loan Forecast Bucks Market Trend
Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.
Read More →
Auto Credit More Plentiful
Growing access shows greater lender appetite for risk as consumers take on heavier debt burden in an inflated market.
Read More →
Auto Loans Long as Stretch Limos
More consumers, faced with ever-rising car prices, are adapting by agreeing to longer loan terms despite the cost of added interest payments.
Read More →
AutoPayPlus Launches RePayPlus
The reinsured biweekly payment program offers auto dealers with customer retention and reinsurance structure.
Read More →