Concerns are growing and sales of second-hand cars are a potential "red flag" (GM, F)

Flickr, CC / Hugo90

• In the United States, the most recent data suggests that the "advanced car" may have already occurred in the United States.
• Yields for GM and Ford shareholders have been low as many concerns continue to emerge around legacy automakers.
• Watch the trade between GM and Ford live.

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Millennials run out of debt. Carpool applications. Autonomous driving technology. The list continues to expand as evidence of the rise of the "advanced car".

Now is the time to add to the list a change in used car sales, according to a recent CFRA Research report. Rising new car prices in recent years have accelerated consumer behavior change.

The trend is particularly pronounced among prime borrowers, whose participation rates in used car financing have increased compared to last year, according to the report. The percentageThe number of "preferred" credit consumers financing used vehicles reached a record 62% in the first quarter of 2019.

"In our view, the fact that the most skilled consumers are becoming more interested in used cars is a potential alarm signal for automakers that continue to push the limits of affordability. consumers, "wrote Garett Nelson, the author of the report.

Fears that the US auto market has already experienced sales of "advanced cars" have been a source of growing concern for the industry. New car sales at General Motors fell for the third consecutive year in 2018 – to 2.95 million vehicles, down almost 50,000 from 2017. Ford's sales also declined over the course of three years. recent years, reaching 2.48 million in 2018, down 9,000 from the previous year.

And that's not all. Ultra-luxury car sales were particularly affected by the sharp drop in demand for Aston Martin, Lamborghini and Rolls Royce, according to USA Today, citing data analysis company Thinknum.

"In our opinion, the peak of auto sales is clear," said Michelle Meyer and Anna Zhou, of Bank of America, at a meeting with a client. Other analysts support this view.

"Light-vehicle sales in the United States are expected to reach just under 17 million units in 2019, which would be the first time since 2014 that new vehicle sales were below 17 million units. ", concluded the MarketScope report.

The rise of electric vehicles is an imminent threat tomachine builders, forcing them to invest huge amounts of capital just to keep up. The millennial generation has also delayed major purchases, such as houses and cars, due to constraints related to the growth of student debt.

In addition, the rise of the giants, Uber and Lyft, have led consumers to question their need for personal vehicles. And advances in autonomous driving technology, which some analysts say will only be in a few years, could further accelerate these trends.

Concerns over the rapid evolution of the sector weighed on the returns of major US automakers. GM shares are stable compared to five years ago, while Ford is down more than 40%. In addition, more than 38,000 jobs were cut in the United States until 2019 alone.

"The industry is currently watching the barrel of what we think is a significant slowdown," Bank of America said. John Murphy said at a conference last week.