VADA Live S2:E25 | Auto Market Outlook, Hybrids & Retail Margins (Brian Finkelmeyer)

Despite rising interest rates, gas price volatility, and macroeconomic headwinds, the U.S. auto industry continues to show remarkable resilience . In this episode of VADA Live, Brian Finkelmeyer, Senior Director of Enterprise Insights & Advisory at Cox Automotive, breaks down why the auto market is pacing over 16 million new vehicle sales while generating a record-setting $780 billion in overall revenue . Brian explores the massive consumer shift toward hybrids, the reality behind auto affordability, looming negative equity risks on dealer lots, and why F&I and Fixed Ops continue to drive dealer profitability . **In this episode:** - **Market Resilience & 16M Sales Pace** — Why macroeconomic headwinds haven't halted demand and how total auto retail revenue hit $780B despite lower unit volume than 2019 . - **The Hybrid Surge** — How gas prices and OEM line-ups have pushed compact SUV hybrid adoption from 25% to over 35% . - **Deconstructing Affordability** — Why affluent households earning $200k+ now represent over 30% of all new vehicle buyers . - **Looming Negative Equity** — How extended 72- and 84-month loan terms and reduced factory cash incentives are creating trade-in hurdles . - **Fixed Ops & F&I Profitability** — Why dealerships are doubling down on service operations and capitalizing on high-yield F&I margins . - **AI Concierges & Global Competition** — Measuring true ROI on AI in dealership operations, plus the impact of Chinese EV expansion on global OEMs . **Resources & Links:** - Stream more episodes and access dealer resources: https://vada.com/live - Learn more about Cox Automotive: https://www.coxautoinc.com/ **About Brian Finkelmeyer:** Brian Finkelmeyer serves as Senior Director of Enterprise Insights & Advisory at Cox Automotive . With decades of retail automotive experience across OEM and software sectors, Brian advises dealership leadership and executive boards on market trends, inventory strategies, and industry shifts . *Enjoying VADA Live? Please leave us a 5-star rating and review on Apple Podcasts or Spotify!*