ASOTU Stranded, Trade Convos in Service, Rate Cut, and Pumpkin Spice

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

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It’s a great Friday to be in the car business as the ASOTU crew braves the trip home from a week of being on the ground with Dealers, OEMS, and Industry Partners at two separate events. Today we’re talking about some service lane trade data, a potential interest rate cut, and the pumpkin spice sign of the times.

Show Notes with links:

• A new survey reveals that most dealerships aren't leveraging the service drive as a source of quality used vehicles by discussing trade-in options.
  • 60% of mass-market customers weren't asked about their vehicle's trade-in value during their service visit and 61% for luxury customers.
  • Only 24% of mass-market and 23% of luxury customers had trade-in conversations.
  • Daymond John on the three ways you interact with customers: “You can acquire, upsell, or make them buy more frequently.”

• The Fed is widely expected to cut interest rates soon, but the big question is how much relief will come.
  • Fed Chair Jerome Powell will address inflation and potential rate cuts in his upcoming speech at Jackson Hole today.
  • The Fed has kept rates high since 2022 to cool inflation, but the market anticipates a rate cut in September, with a good chance for a 25-basis-point cut and a smaller chance of a 50-basis-point cut.
  • Powell remains data-driven, cautioning against cutting rates too soon to avoid reigniting inflation.
  • "This is not what an overheating economy looks like," says Fed's Austan Goolsbee, signaling a shift in economic conditions.

• The ever-divisive Pumpkin Spice Latte is back, arriving earlier than ever this year, as Starbucks released its fall menu yesterday, sparking both joy and outrage.
  • The pumpkin spice latte has been a fall favorite since its debut in 2003, with 20 million sold annually.
  • Social media is buzzing with both excitement and frustration over the early release.
  • A 2022 study shows 55% of online pumpkin spice posts are positive, with 8% negative.

Hosts: Paul J Daly and Kyle Mountsier
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