$1000 Car Payments, Is The Chrysler 200 Back, Does Music Help Or Hurt The Shopping Experience

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Thursdays are for taking care of one another. It’s true! Today we’re talking about the new car payment data that has everyone digging a little deeper. We also talk about a unique sale coming from a Chrysler Dealership, as well as the science behind music in the showroom. 

Show Notes with links:

• Q2 of 2023 delivered an unprecedented one-fifth of all new car buyers now have monthly payments over $1,000, due to high prices and borrowing costs, according to Edmunds. 
  • Average monthly car payments reached $733 amid inventory shortages and increased transportation issues, with the average loan amount exceeding $40,000 for the fifth consecutive quarter.
  • The largest group within the $1000/month contingent, accounting for nearly 65%, signed up for an average loan-term range of 67-84 months with an average APR between 8.5% and 9.6%
  • The average APR has increased slightly to 7.1%, the highest since the fourth quarter of 2007
  • The avg car payment hit a new all time high and is now $733
    
    
    
• As the Q2 reports are rolling in, Stellantis had a little blip on their report which turns out to be the fact that they sold exactly one Chrysler 200 at a dealership during the time frame. 
  • It was a 2016 and we don’t know exactly where it was sold or to whom
  • An average MSRP was in the $26k range and currently there are listings of similar vehicles with 100k miles on them going for more than half of that
    
    
    
• Recent research reveals that in-store music can boost weekday sales by over 10%, as tunes seem to uplift weary workweek shoppers. However, the same melody might not have a similar impact on the weekend crowd, and could even be distracting.
  • The study analyzed 150,000 shopping trips in a Swedish supermarket chain in Stockholm and found shoppers from Monday to Thursday tend to be mentally tired, and ‘pleasant’ music enhances their mood, making their purchasing decisions more instinctive.
  • On Fridays, shoppers are typically happier and less hurried, making them less affected by any "subconscious marketing" through in-store music.
  • Music's impact on shopper behavior often depends on factors such as volume and the type of music played.
  • Previous research suggests music can influence the shopper's social, emotional, cognitive, and arousal responses.

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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