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Auto Blog
a day ago
- Automotive
- Auto Blog
Tariffs Are Making New Cars Even More Unaffordable, Says Study
By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. New cars are expensive New cars are expensive, but the latest data indicates that they aren't slowing down any time soon. According to data from Cox Automotive and Kelley Blue Book, the average transaction price for a new car reached $48,907 in June 2025, a 1.2% increase from the same period last year. Though it seems like a high amount, a quick glance at car-buying platforms and automakers' websites shows that there are many models on the market with MSRPs far below that threshold. However, a new study from the research department at Cars Commerce, the company behind , shows that a few key factors will keep cars unaffordable. Previous Pause Next Unmute 0:00 / 0:10 Full screen Automakers brace for uncertain future amid Trump's tariff pause Watch More Source: Getty Images Where did all the cheap cars go? According to new data from Cars Commerce's Industry Insights Report for the first half of 2025, the impact of the Trump administration's tariffs on imported cars, as well as the threat arising from the end of Federal EV Tax Credits, would fuel an affordability crisis that can greatly impact the U.S. car industry. 'With price hikes on many imports starting to emerge, the $7,500 federal EV tax credit set to expire in September, and the entry-priced segment now shrinking for three consecutive months, affordability remains the biggest challenge to continued growth,' said David Greene, industry analyst at Cars Commerce. 'How automakers respond in the second half — through pricing, production, and incentives — will shape the road ahead.' Most notably, Cars Commerce found that the inventory of cars priced under $30,000 saw a massive dip. Per their data, cars under $30K made up just 13.6% of new car inventory in the first half of 2025. That number is a considerable loss compared to 2019, when such vehicles made up 38% of the market. Source:In terms of dealer inventory, the segment saw 3.9% growth year over year (YoY); however, it lags behind the 5.6% overall increase for new-car inventory. The segment is the most exposed to tariffs, as about 92% of the cars sold under $30K are actually imported from overseas. Just two cars in that segment, the Honda Civic and Toyota Corolla, are built in the US, though some models are produced in Japan. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. At the same time, the segment that defined as the 'mid-range new car segment;' which consists of cars costing between $30,000 and $49,000, accounted for nearly half of all inventory, though 50% of the vehicles in this price bracket are imported. The data suggests that automakers are adjusting to tariffs, as the share of imported cars within the $70,000-plus price segment increased from 40% in May to 41% in June. The study also shows that dealers increased their inventory by 5.6% during the first half of 2025, as they stocked up before tariffs were imposed in April. Additionally, there was a surge in sales as consumers rushed to secure pre-tariff pricing in March and April, leading to a 3.9% increase in new car sales compared to the first half of 2024. The increase in new vehicle purchases raised the supply of used cars, as many customers traded in their vehicles before the tariffs took effect. Consequently, used car prices dipped slightly in the first quarter of 2025 but rebounded with a 1.6% increase in the second quarter. Source: Getty Images According to data from , more than half of consumers said that the tariffs have influenced their decision to buy American-made cars. Additionally, over 73% of respondents would consider purchasing U.S.-built cars to avoid extra costs. Currently, the supply of pre-tariff new cars is depleting, and as a result, the study predicts that we should expect price increases in the near future. So far this year, the average price of new cars has risen by only $97; however, vehicles from the United Kingdom have become over $10,000 more expensive. In contrast, EU-built cars have seen an average increase of nearly $2,500. Meanwhile, the prices of vehicles from China, Canada, and Korea, as well as American-built cars, have decreased by an average of $200. In addition, Cars Commerce also found that EV buyers will be affected in the latter half of the year, as the federal $7,500 tax credit for new EVs is set to expire after September. In its survey of electric vehicle (EV) buyers, 53% said that the federal tax credits were a primary reason for their purchases, adding that it may be 'difficult' to maintain the momentum of 28 consecutive months of new EV inventory growth once the calendar hits October. Final thoughts The Trump administration and some lawmakers say they're trying to make cars more affordable by imposing tariffs, but according to the consulting firm AlixPartners, these tariffs could cost the auto industry about $30 billion by 2026. Although manufacturers like Nissan and Volvo are taking localization concerns seriously with their recent plans to consolidate factories, trim the U.S. lineup, and move production of their top-selling vehicles to factories in the U.S., it should be reiterated that this isn't a simple flip of the switch; Volvo, for instance expects to make the first XC60s in South Carolina by 2026. Until then, those on the buyers' side have all the tools to find out which specific vehicles are 'American-made,' including the NHTSA's Part 583 American Automobile Labeling Act Reports, which are publicly available on their website. About the Author James Ochoa View Profile
Yahoo
3 days ago
- Automotive
- Yahoo
These 5 New Cars Currently Have The Biggest Discounts, According To Consumer Reports
New cars have always been pretty expensive, but you also used to at least be able to find more affordable options. Currently, though, you can't buy a new car for less than $20,000, and Republican tariffs threaten to make new cars even more expensive than they already are. That said, at least the pandemic-era days of dealers adding a big markup to every car on their lot are behind us, and there are deals to be had. Especially if you don't mind picking up a slightly older car that may not be the best in the segment anymore. If you're on the hunt for a good deal on a new car, though, you're in luck. Our friends over at Consumer Reports recently combed through actual transaction data provided by TrueCar and put together a list of the new cars that should come with the biggest discounts. Of course, not all dealers are going to have the same price, so your results could always vary, but generally speaking, you can expect a 6% discount on the Genesis G70 and Ford F-150, which really isn't bad. And yet, those two vehicles still don't currently come with big enough discounts to make it into the top five. Read on if you want to see which vehicles actually did make it onto the most recent version of this list. Read more: These Are The Cheap Cars That Consumer Reports Actually Recommends Buying Mercedes-Benz C-Class - 7% Mercedes-Benz C300 MSRP: $48,450 Average transaction price: $44,877 Expected Savings: $3,573 The latest Mercedes-Benz C-Class hasn't been the most popular compact luxury sedan in the last couple of years, potentially due to the cabin's not-so-intuitive layout. Still, it's a C-Class, and that means you get a luxurious, high-end interior and better handling than you might expect given the luxury focus. A BMW 3 Series may be a little sportier, but Consumer Reports expects both cars to offer similar reliability. Subaru Solterra - 8% 2025 Subaru Solterra Premium AWD MSRP: $38,495 Average Transaction Price: $35,430 Expected Savings: $3,065 The Subaru Solterra is an electric crossover based on the Toyota bZ4X (well, now it's just the bZ), and while it isn't the spec monster that a lot of people insist they need before they'll go electric, you may be surprised just how well it performs even without 300 miles of range. If a 150-mile Fiat 500e proved to be an excellent daily driver, a Subaru Solterra with 227 miles of range should do just fine. The dealer better be ready to make a deal, though, because the 2026 refresh is coming, and it looks much more desirable. Nissan Leaf - 8% 2025 Nissan Leaf SV Plus MSRP: $36,190 Average Transaction Price: $33,181 Expected Savings: $3,009 The Nissan Leaf is another electric car that's due to be replaced soon with a new version that offers more range and a more compelling package. Still, if you just want a car to get you around town, the Leaf will do a great job there. It isn't particularly sporty, and even the long-range version only offers 212 miles, so road trips could be a little annoying. On the other hand, as a daily driver, it's a solid option, at least depending on how much the dealer expects you to pay for it. Mercedes-Benz CLA - 9% 2025 Mercedes-Benz CLA 4Matic MSRP: $46,400 Average Transaction Price: $42,257 Expected Savings: $4,143 Mercedes-Benz doesn't have the best reputation for building the best entry-level cars, but the CLA certainly looks better than the A-Class. It also probably isn't nearly as bad as you might expect, given its lack of popularity. Still, while you can probably find better cars at MSRP, if you can get a good deal on a CLA and are into the styling, it's at least worth taking one for a test drive. Maybe they're desperate to get rid of the ones on the lot before the 2026 models start showing up. Volkswagen ID4 - 12% 2025 Volkswagen ID.4 Pro AWD MSRP: $48,995 Average Transaction Price: $43,216 Expected Savings: $5,779 Like a lot of the other cars on this list, the Volkswagen ID.4 is about to be replaced by a new version that will presumably be better and more desirable. Still, while the current car isn't the sportiest EV you could buy, it got a pretty significant update for the 2024 model year that added both more power and extra range. And while some potential buyers might balk at the Pro's sub-300-mile range, its 263-mile rating is still plenty for daily driving. Want more like this? Join the Jalopnik newsletter to get the latest auto news sent straight to your inbox... Read the original article on Jalopnik.
Forbes
09-07-2025
- Automotive
- Forbes
Car Loan Interest Tax Break: Who Qualifies Under The Big Beautiful Bill?
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Anyone in the market for a car will soon be able to write off fees for their purchase as a tax exemption. The Senate GOP-backed version of Trump's One Big Beautiful Bill Act includes provisions that will make it easier to purchase a new automobile, though not all cars qualify. The new law stipulates that new auto owners can establish a new tax deduction up to $10,000 for annual interest paid on new car loans from their income. The tax break is temporary and would last from 2025 through 2028. Auto owners won't have to itemize to take advantage of the write-off. The perk, however, prioritizes individuals who have a modified adjusted gross income of under $100,000, with the deduction value falling off for those who make more and joint filers who make over $200,000. The deduction falls $200 for each $1,000 of income over the thresholds. To qualify, the car must be new with a final assembly in the United States, which rules out models from popular imports like Nissan and Toyota. Roughly half of the new vehicles sold in America have final assembly in the country, according to and include certain models from brands like Tesla, Volkswagen and Jeep. While many cars are assembled in America, they still require imported parts. The most 'American-made' cars, according to American-Made Index, are as follows: Tesla Model Y, assembled in Fremont, California, and Austin, Texas Tesla Model X, assembled in Fremont, California Tesla Model S, assembled in Fremont, California Honda Passport, assembled in Lincoln, Alabama Honda Odyssey, assembled in Lincoln, Alabama Honda Ridgeline, assembled in Lincoln, Alabama Volkswagen ID.4, assembled in Chattanooga, Tennessee Toyota Camry, assembled in Georgetown, Kentucky Jeep Wrangler, assembled in Toledo, Ohio Lexus TX 350, assembled in Princeton, Indiana ATVs, trailers, and campers are not eligible for the new tax deduction. Cox Automotive's chief economist Jonathan Smoke told CNBC the provision won't make that much of a difference for low-income and middle-class households. To make the most of the waived interest, one would need to take out a loan of approximately $112,000 to make use of the full $10,000 deduction, says Smoke. According to Experian data, the average new car loan is $41,720, while the average new car loan interest rate is 6.73%. For loans of over $100,000, brands like Mercedes-Benz, Maserati, Aston Martin, Lamborghini, McLaren, and Porsche would meet the financial criteria, according to CNBC, but many wouldn't even qualify, considering they're foreign imports. On top of that, most household incomes with new cars lean above-average, with the average household income (HHI) at $140,000 for an EV buyer, $115,000 for a new-vehicle buyer, and $96,000 for a used-vehicle buyer, according to Cox Automotive . It also predicts that 16.3 million new cars will be sold in 2025, but out of the vehicles soon to hit the road, only a few will net their owners a significant number in interest savings. Realistically, the savings for the average household with this new tax credit will be relatively small, which Smoke noted would clock in at around $500 for the first year, with the value declining year after year.
Auto Blog
07-07-2025
- Automotive
- Auto Blog
The Rise of 84-Month Car Loans: Why Buyers Are Trapped
By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. New cars are expensive, and it hurts Regardless of whether you've nervously scrolled through endless listings on dealer websites or wasted hours of your life configuring your dream cars online, it hurts to know that new cars are expensive. According to analysts from Kelley Blue Book and Cox Automotive, dealers are doing the most they can to keep car prices steady; however, the average new car in the U.S. still costs a whopping $48,799 in May 2025, a 2.1% increase from the same month in 2024. 0:05 / 0:09 Costco members can save $3,000 on a new Chevy Corvette Watch More Although data shows that tariffs have influenced some buyers in the U.S. to defer or delay their buying decisions, other buyers must finance their cars, which keeps a disturbing trend alive among new car buyers. BMW vehicles are displayed for sale on a lot at the BMW of South Austin dealership — Source:More drivers are taking out longer loans with higher interest, says Edmunds According to new data released by car buying authority Edmunds, Americans' auto loans are reaching a point where Dave Ramsay and Caleb Hammer would declare a personal finance armageddon. While automakers and dealer groups would advertise their single-digit promotional financing rates as terms that extend over 60 months (5 years) or 72 months (6 years), buyers are stretching their payment plans for much longer. Edmunds reports that in Q2 2025, more buyers than ever are taking out loans over the course of 84 months (7 years), making up about 22.4% of new-vehicle financing in the quarter, up from 20.4% in Q1 2025 and 17.6% during the same period last year. Though buyers are willing to stretch and spread out their loan terms for a lower monthly payment, they aren't being spared from paying out the wazoo every month. According to Edmunds, over 19.3% of new car buyers had monthly payments that exceeded $1,000 in Q2 2025, a notable increase from the 17.7% in the previous quarter. As more buyers opt for extended loan terms, Edmunds' consumer insights analyst Joseph Yoon warns that this could have later consequences, especially as the risks and tribulations of car ownership, such as upkeep costs and depreciation, kick in. 'While extended loan terms may make a monthly payment more palatable, consumers need to keep in mind the risks associated with a loan extended that far into the future, including increased costs for upkeep down the line and the risk of being underwater on the loan if the car is traded in before it's paid off,' Yoon said. 'If payments on a more standard 60- or 72-month loan don't fit your budget, you might consider leasing. While you won't be building equity in your vehicle the way you do with a purchase, leases afford time to get your finances in better shape with lower monthly payments in the meantime.' Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. APRs remain high, but buyers are putting less money down Although ads on TV during select promotional periods, like certain federal holidays, show that your local [insert automotive brand here] dealer is offering 0% APR loans, or a number close to it (such as 0.9%) on a specific model, these kinds of rates are far out of reach for the average new car buyer. Edmunds says that the average buyer financed their cars at an annual percentage rate (APR) of 7.2%. However, this doesn't mean that 0% finance deals don't exist; in fact, they accounted for 0.9% of new-vehicle loans in Q2 2025. This was the lowest share Edmunds recorded since 2004, down from 1% in Q1 2025 and 2.9% in Q2 2024. BMW vehicles are displayed for sale on a lot at the BMW of South Austin dealership — Source: Getty Images However, while it is commonly known that a sizable down payment is required to achieve manageable monthly payments, in addition to accepting longer loan terms, Edmunds found that buyers are putting less money down on their new car loans than ever before. According to their data, the average down payment that buyers put down on their new-car loans was $6,433 in Q2 2025, which is down from $6,511 during the previous quarter and $6,579 during the same time last year. At the same time, Edmunds found that new car buyers are financing increasingly expensive vehicles. They found that the average amount financed for new cars climbed to an all-time high of $42,388 in Q2 2025, up from $41,473 during the last quarter and $40,873 during the same time last year. Final thoughts In a statement, Ivan Drury, Edmunds' director of insights, noted that while it would be easy to assume and point fingers at the Trump administration's tariffs, car prices remain steady at a level that car buyers still can't afford. 'It's clear that buyers are pulling the few levers they can control to manage affordability, whether that's by taking on longer loans, financing more, or putting less money down — even if some of those decisions increase their total costs,' Drury said. 'Consumers are continuously stretching to afford new vehicles in this market, and while tariffs haven't directly driven these Q2 numbers, they're certainly not going to make things any easier for shoppers moving forward.' 2025 Ram Power Wagon — Source: Ram We are seeing automakers react to the reality of extended loan payments, too. In fact, the Stellantis-backed Ram Trucks began to offer a best-in-class 10-year/100,000-mile powertrain warranty, which gives Ford and Chevy something to think about. However, in its press release, Ram acknowledges that the warranty comes as 'more buyers opt for extended loan terms.' 'Everything is more expensive, and trucks are certainly no exception. Truck buyers are financing purchases for longer periods of time, with nearly 80% of new truck loans exceeding five years,' Ram Trucks CEO Tim Kuniskis said in a statement. It is one thing for automakers to recognize this reality, but it is another to enable it. This data comes at the same time when auto loan delinquency is at its highest, as 1.4% of auto borrowers were at least 60 days behind on their auto loan payments during the first quarter of 2025, per TransUnion. About the Author James Ochoa View Profile
Yahoo
04-07-2025
- Automotive
- Yahoo
UK car market up 6.7% in June, with BEVs up 39%
The UK's new car market grew for the second consecutive month in June, as registrations rose 6.7% to 191,316 units, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). It was the best June since 2019, helping lift first half performance 3.5% above the same period last year, although the market remains 17.9% behind pre-Covid levels. Once again, the market was driven by fleet activity, though private retail demand grew 5.9%. New petrol registrations declined 4.2% and diesel volumes were flat (+0.2%), meaning their combined share of the market is now just over half (51.6%), with total electrified vehicle registrations (92,571) achieving a 48.5% market share. Registrations of vehicles with plugs rose strongly as battery electric vehicles (BEVs) jumped 39.1% to 47,354 units, equivalent to a quarter (24.8%) of the market, and plug-in hybrid electric vehicles (PHEVs) grew 28.8% to 21,382 units. The market for new hybrid electric vehicles (HEVs), meanwhile, fell by 8.5% to 23,835 registrations. Across the first six months of 2025 new BEV registrations have risen 34.6% to 224,841 units but, at 21.6% market share, they remain significantly behind the 28% mandated for this year. Moreover, the SMMT said achieving this level of market penetration has required discounts totalling £6.5 billion over the last 18 months. In a recent survey of automotive CEOs carried out for SMMT's new Automotive Business Leaders Barometer, more than half (55%) said they believe the UK is significantly behind plan to meet the 2030 end of sale date for new cars powered solely by combustion engines. Mike Hawes, SMMT Chief Executive, said: 'A second consecutive month of growth for the new car market is good news, as is the positive performance of EVs. That EV growth, however, is still being driven by substantial industry support with manufacturers using every channel and unsustainable discounting to drive activity, yet it remains below mandated levels. As we have seen in other countries, government incentives can supercharge the market transition, without which the climate change ambitions we all share will be under threat.' "UK car market up 6.7% in June, with BEVs up 39%" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
