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Finally An Interest Rate Cut, Ford Karaoke, AI Goes Hollywood
Description:
Dealers across the country breathed a sigh of relief this morning at news of the Fed’s interest rate cut. We’ll be talking about that, plus how Ford is adding karaoke to vehicles and a partnership between a big Hollywood studio and an AI video generator.
Announcement
- Upcoming ASOTU Edge Webinar on Wed September 25 at 2PM - Don’t Miss The Signals! How Unresolved Complaints Turn Into Compliance Nightmares with the Association of Finance and Insurance Professionals and DealerResolve
- Vincue Unleashed Sept 23-25 - ATAE Comms Nov
Show Notes with links:
- After a long period of hesitation due to high prices and financing costs, the Federal Reserve’s September 18 interest rate cut of 0.5% could help revive consumer demand for vehicles. Dealers are optimistic that this move will spur more buyers into the market.
- Cox Automotive found that 67% of dealers viewed high rates as their top issue, while Edmunds said that 62% of consumers planning to buy a car within 12 months delayed purchases due to high rates.
- In August, new car loan interest rates averaged 7.1%, while used car loans hit 11.3%.
- TransUnion projects consumer demand may not fully recover until late 2024 or 2025 as interest rates and vehicle prices stabilize.
- Jessica Caldwell, head of insights at Edmunds believes the cut may push hesitant buyers back into showrooms, especially with year-end promotions, saying “While the rate cut alone may not flood showrooms, it creates a more favorable environment for buyers.”
- Ford is adding a new karaoke feature to some of its vehicles, enhancing road trip entertainment. A software update for the 2024 F-150 Lightning will introduce the Stingray Karaoke app, allowing passengers to sing along during drives.
- The app uses sensors to detect if a passenger is present, allowing them to control the experience via a QR code and smartphone.
- Initially available on the F-150 Lightning, the feature will expand to the Mustang Mach-E and select gas-powered Ford and Lincoln vehicles.
- The touchscreen will display lyrics only when the vehicle is parked, promoting safe driving habits.
- The Stingray app offers a wide variety of songs and lyrics in 38 languages.
- "Our goal at Ford is to continue to improve the ownership experience for customers by delivering experiences like Stingray Karaoke that ultimately bring joy," said Chet Dhruna, Ford's connect and engage general manager.
- Lionsgate, the studio behind the John Wick and Hunger Games franchises, has signed a deal with AI startup Runway to develop a custom video generatio
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