July 11, 2025

[FRI] Consumer Confidence & Spending: How It Impacts BHPH & LHPH Today

42 minutes

On this Friday episode, we break down what the latest June 2025 consumer sentiment and spending data points really mean for Buy Here Pay Here and Lease Here Pay Here dealers and the customers they serve. While headlines shout “recovery,” the details tell a more complicated story—and for subprime operators, reading between the lines is critical.

We highlight key findings from:

The University of Michigan Consumer Sentiment Index**, which showed a surprising jump to **60.7**—the first rise in six months—but still nearly **20% below December levels**.

The Conference Board’s Consumer Confidence Index**, where June’s drop to 93.0 (down from 98.4 in May) reveals underlying anxiety, especially in expectations for the future.

U.S. Bureau of Economic Analysis (BEA) data showing a slight decline in consumer spending in May, despite prior modest gains—indicating a cooling trend that can't be ignored.

Federal Reserve inflation expectations, showing short-term optimism (3.0% one-year outlook), but long-term caution still anchored.

We also discuss behavioral shifts—more consumers buying less, switching to generics, and cutting back on travel—that paint a picture of cautious budgeting, even in households that 'appear' financially stable.

For BHPH dealers, this episode offers strategic takeaways:

Why "happy" consumers may still delay big purchases or stretch payments.

What changes in spending priorities mean for inventory planning.

How to rethink underwriting and follow-up in a consumer environment that's hopeful—but fragile.

👉 Whether you're on the lot or in the finance office, this episode helps decode where your customers’ heads—and wallets—really are.

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Find the BHPH Morning Show on Video (Live or Archived)

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We are pleased to use our sometimes-scratchy morning voices to speak up on behalf of BHPH Dealers. Don't forget to LIKE the videos and SUBSCRIBE to The Octane Group channel. Also, please add your comments or questions right here in the BHPH Institute.

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By Jim & Michelle Rhoads

44 ratings