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Episode #1193: Today, we’re covering a spike in EV inventory, why dealerships are losing service customers, and how Gen Z’s complex spending habits could reshape the retail landscape.

Show Notes with links:

• A new Cox Automotive study warns that dealerships are quietly losing the long game in fixed ops. Despite the average age of a vehicle being 12.8 years, customer loyalty—especially among recent buyers—is slipping fast.
  • Dealerships now see 12% fewer service visits than in 2018, despite rising service volume overall.
  • Loyalty is weakening: just 54% of owners with cars under 2 years old return to the selling dealer, down sharply from 72% in 2023.
  • Independent shops, quick lube chains, and mobile services are capturing business once assumed to be “locked in.”
  • Primary reasons for defections include surprise costs and poor communication—despite dealership pricing being slightly lower than independents on average.
  • “There is a clear call to action here for dealerships to proactively address customer dissatisfaction, strengthen communication and improve sales to service coordination to build back market share through lasting relationships.” said Skyler Chadwick, Director of Product Consulting at Cox Automotive.

• New-vehicle inventory in the U.S. surged past 3.1 million units in early November, with electric vehicles stacking up the fastest.
  • Total inventory rose from 2.8M to 3.14M units, with days’ supply climbing to 70.
  • EV supply more than doubled in October to 107 days, up from 47 just a month earlier.
  • Gas-powered vehicles sit at 72 days; hybrids at a leaner 57 days. Cars remain tight at 46 days while light trucks sit at 60 days
  • Toyota leads the pack with the tightest supply at just 33 days, while several Stellantis brands now exceed 100 days’ supply.
  • Subaru was the only automaker among monthly reporters to see inventory shrink.

• Retailers are racing to understand Gen Z—set to command $12 trillion in spending power by 2030. A new PwC report shows this generation mixes frugality with emotional spending and values-driven decisions.
  • Gen Z plans to cut holiday spending by 23%, averaging $1,357—far less than millennials at $2,190.
  • 82% plan to buy “dupes”—affordable versions of luxury goods—and 79% wait for sales.
  • While cautious, they’ll splurge on “affordable affluence”: resale sneakers, luxury skincare, and $7 matcha lattes.
  • Loyalty is fleeting: 81% have changed buying decisions based on a brand’s reputation.
  • Quote: “For most Gen Z’ers, customer loyalty has to be earned, and even then it is fragile,” said Greg Petro, Forbes contributor.

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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