Hyundai-Amazon Sales Coming In January, Betting on Auto Bonds, Distracted Holiday Driving

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We’re rooting for a great end to the month as we enter Thanksgiving week. Today, we’re talking about how Hyundai and Amazon’s online retail platform could enter its next phase in January, how Wall Street investors are still bullish on auto loans and how this week signals a new level of danger for drivers.

Show Notes with links:

• Thank Dan Shine for having us on Fridays Daily Drive Podcast

• Hyundai’s online retail platform with Amazon faced setbacks from the CDK cyberattack but is now on track for a January pilot phase launch. Despite technological and operational hurdles, dealers are increasingly optimistic about the program's potential.
  • Over 80% of Hyundai’s 841 dealers expressed interest in the platform, signaling strong support.
  • Hyundai addressed dealer concerns, ensuring sales remain tied to the dealership, not Amazon.
  • The CDK outage disrupted over half of Hyundai’s dealer network, delaying progress.
  • Other challenges include trade-in valuation and flexible financing options.
  • Hyundai CEO Jose Munoz said that “Customers want to go to the dealer to get the car themselves. That’s one of the reasons why a lot of dealers have seen this not as a competition, but as something that reinforces their sales.”

• Investors are doubling down on auto loans, even as rising delinquencies signal financial stress for consumers. Wall Street remains bullish, betting on a strong economy to balance the risks.
  • Subprime auto bonds sales surged to $40B in 2023, up 17% from last year.
  • Investor demand is immense; some bond deals are oversubscribed by 20x.
  • Auto bond yields have tripled since 2021, with low-grade bonds offering 6%.
  • Delinquencies, now at 3.8%, are the highest since 2010, affecting low-income borrowers most.
  • Analysts argue that car payments are prioritized; “You can live in your car, but you can’t drive your house,” says Daniel Liesener.

• Thanksgiving week sees a sharp rise in distracted driving, making it one of the riskiest travel periods of the year. Peak travel times amplify those dangers with increased phone use and speeding.
  • Thanksgiving Day distraction rates soar 18% higher than a typical Thursday.
  • Speeding doubles during Thanksgiving week, contributing to additional crashes.
  • The Wednesday before Thanksgiving sees distraction up 7%, peaking on the holiday itself.
  • Distraction is highest from 9:00 a.m. to 1:00 p.m. on Thanksgiving Day, dropping during typical dinner hours.
  • “Early morning travel offers safer conditions,” highlights the report, urging caution.

Hosts: Paul J Daly and Kyle Mountsier

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