State-of-the-art technology and luxury make trading in your clunker for a new car very tempting. But experts say crunch the numbers first. Edmunds’ head of insights, Jessica Caldwell, weighs in on rising levels of negative equity and what consumers need to consider before dipping their toes back into the car market.
For those who really want to go electric but have been dragging their heels on making the big purchase, there may be no better time than now. “Your safest play is sooner than later,” says Ivan Drury, the director of insights at Edmunds, a US auto information resource. "There's nothing pointing toward additional subsidies.” Edmunds data shows that, in October, 79 percent of electric vehicles acquired at dealerships were leased. EV hesitaters might also go for an even shorter experiment: rental. “Rent one for a week,” recommends Edmunds’ Drury. That's probably enough time to figure out whether an EV is right for you.
Live from the Los Angeles Auto Show floor at the LA Convention Center, Alistair Weaver, Edmunds’ editor-in-chief, helps KCAL9 preview one of the world's largest auto and mobility shows, taking place Nov. 22 through Dec. 1.
Notably, Trump also said on the campaign trail that he would consider ending tax credits for electric vehicles, which have meaningfully reduced the cost of EVs. Currently, buyers who meet income-eligibility requirements can claim up to $7,500 for eligible new EVs or up to $4,000 for eligible used EVs. “These policies will not likely change overnight, but consumers who were planning on taking advantage of EV tax credits and reduced costs might consider moving up their purchases a bit sooner,” Edmunds’ head of insights, Jessica Caldwell, said in a statement. “Between manufacturing reductions and a potential elimination of the EV tax credit without a known substitute, EV supply could dip and drive costs back up.”
An EREV is a kind of PHEV that's closer to a full electric—and drives like one. An EREV also has an electric motor and a gas engine, but the battery is usually bigger, and the gas engine doesn’t drive the wheels. Instead, the engine can recharge the battery, working as a small generator to give it extra mileage on the go. EREVs have some manufacturing advantages, too, says Steven Ewing, who directs editorial content at Edmunds. Specifics on Scout production are scant, but at least the Ramcharger is using components and technology that Stellantis already puts in other cars. “You’re not introducing this giant new propulsion system,” Ewing says. On the EREV (and PHEV) con side: It’s always going to be expensive to put two powertrains into one vehicle.
The gap between the average price of a new and used vehicle has eclipsed $20,000, according to data out from Edmunds. That’s the widest gap since the site started tracking it in 2004 and comes as used car prices are finally falling, though the market is still daunting. Early in the pandemic, the shortage of new cars drove up demand and prices for used ones. Things are starting to normalize, according to Ivan Drury, director of insights at Edmunds. “Because there’s finally those cars that are available on the new car market that’s putting that downward pressure on prices,” he said.
Across the industry, auto analysts say, an “affordability shift” is taking root. The trend is being led by people who feel they can no longer afford a new vehicle that would cost them roughly today’s average selling price of more than $47,000 — a jump of more than 20% from the pre-pandemic average. To buy a new car at that price, an average buyer would have to spend $737 a month, if financed at today’s average loan rate of 7.1%, for just under six years before the vehicle would be paid off, according to Edmunds.com, an auto research and pricing site. For many, that is financially out of reach.
More Americans are upside down on their car loans, and the average amount they owe is at an all-time high, according to a new survey from car comparison site Edmunds. In the three months ended in September, 24.2% of Americans who traded in their car toward a new vehicle purchase owed more on the trade-in than it was worth, which is considered "upside down" or "underwater," Edmunds said. That’s up from 23.9% in the prior three months and 18.5% a year ago. Additionally, the amount they owed on those trade-ins climbed to a record high of $6,458, with 22% owing at least $10,000 and 7.5% owing $15,000 or more, it said.
What’s in a name? Alison Anziska, Edmunds’ senior vice president of marketing, answers that question in an episode of the Auto Remarketing Podcast about a new advertising campaign featuring athletes bearing a similar name to the company. Anziska talks with Cherokee Media Group senior editor Joe Overby about the serendipitous online search activity that inspired the campaign, how humor can help brands connect with consumers, the overlap of Edmunds’ audience/engagement with sports and much more.
Online car-shopping guide Edmunds launched a new sports-themed social media advertising campaign to boost brand awareness and help retailers sell more cars. "As we build audiences for Edmunds, we're building audiences for our partners as well," Alison Steinlauf Anziska, Edmunds' senior vice president of marketing, told Automotive News. The spots are designed to be humorous and feature professional athletes who share the "Edmunds" name — football-playing brothers Tremaine, Terrell and Trey Edmunds, and professional soccer player Kristen Edmunds.
