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Tesla isn't done with price cuts it seems. Bloomberg reports that the automaker has dropped the price of all Model 3 models by $1,100 - bringing the base price to $42,900. The reason cited by Tesla was the end of a customer referral program that ended up costing them more than they realize. The program gave new owners six months of free supercharging if they were referred by a friend. Those who referred a number of people got rewarded with various prizes such as getting the next-generation Tesla Roadster. This is the second price cut for Model 3 this year. Last month, Tesla instituted a $2,000 price cut on their lineup to soften the blow of the Federal Tax Credit being cut from $7,000 to $3,750. Source: Bloomberg View full article
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Tesla isn't done with price cuts it seems. Bloomberg reports that the automaker has dropped the price of all Model 3 models by $1,100 - bringing the base price to $42,900. The reason cited by Tesla was the end of a customer referral program that ended up costing them more than they realize. The program gave new owners six months of free supercharging if they were referred by a friend. Those who referred a number of people got rewarded with various prizes such as getting the next-generation Tesla Roadster. This is the second price cut for Model 3 this year. Last month, Tesla instituted a $2,000 price cut on their lineup to soften the blow of the Federal Tax Credit being cut from $7,000 to $3,750. Source: Bloomberg -
Prices on new pickup trucks have been steadily increasing as more people are choosing them as their family vehicle and in turn are wanting more luxury features. But this rise in prices has been making it harder for the average buyer to afford one. Data from Edmunds shows through September, the average transaction price for a full-size pickup is $48,377; a 48 percent increase when compared to 10 years ago and 19 percent increased when compared to 2013. "A 48-percent increase in price is the highest price increase for that time period out of all vehicle categories. Even at $45,000, it prices a lot of people out," said Ivan Drury, senior analyst at Edmunds to the Detroit Free Press. "There are consumers who can afford the bare bones basic vehicles at $30,000, but once you're shown an option like a ventilated seat versus a cloth seat and it's 90 degrees outside, it becomes a very compelling argument to say yes. Ten years ago, comfort packages weren't offered on trucks. People are saying, 'I want those even if those vehicles are used to haul mulch.' " A very telling sign that truck prices are beginning to push people out is the massive difference between the expected and the actually average transactional price. Cox Automotive reports that buyers of a full-size pickup expected to pay an average of $38,529 through the month August. The actual average transaction price through August was $47,987 according to Cox. Also seeing a rise is the average income of truck buyers. Alexander Edwards, president of consultancy Strategic Vision tells the Free Press that the median household income of a truck buyer has risen form $76,660 in 2009 to $100,305 in 2018. More telling is that the truck buyer has a higher income than a car buyer ($95,355). Some are beginning to worry that pickup trucks are becoming a bit too expensive. "In 1988, I sold my first pickup at $20,000 and I thought, 'Man, who could ever afford this?' Now, they're $60,000, $70,000, $80,000. ... I'm not sure everybody wants all that technology, but we're adding all of it. We're actually in the luxury business at those prices," said Charlie Gilchrist, owner of Gilchrist Automotive in the Dallas-Fort Worth area. A survey done by CarGurus correlates Gilchrist's view. Asking 203 current pickup owners from their user panel, CarGurus reports that owners would call paying $35,000 on a truck a good deal. But increase it to the average price of $45,200 and its too much. Respondents also said they would be willing to give up such features as a automatic open-close tailgate and Wi-Fi hotspot for a lower price. “This survey showed that pickup truck owners believe some of the new technology is nice to have, but not essential and not worth the price. We’re at an interesting time in the pickup truck category where many people are using their pickup trucks for more than just work. Those looking for a truck purely for work purposes don’t need all of the new luxury features, and those looking for a truck for commuting or leisure don’t need all of the new work features,” said Madison Gross, CarGurus' senior manager of customer insights. Source: Detroit Free Press- 21 comments
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Prices on new pickup trucks have been steadily increasing as more people are choosing them as their family vehicle and in turn are wanting more luxury features. But this rise in prices has been making it harder for the average buyer to afford one. Data from Edmunds shows through September, the average transaction price for a full-size pickup is $48,377; a 48 percent increase when compared to 10 years ago and 19 percent increased when compared to 2013. "A 48-percent increase in price is the highest price increase for that time period out of all vehicle categories. Even at $45,000, it prices a lot of people out," said Ivan Drury, senior analyst at Edmunds to the Detroit Free Press. "There are consumers who can afford the bare bones basic vehicles at $30,000, but once you're shown an option like a ventilated seat versus a cloth seat and it's 90 degrees outside, it becomes a very compelling argument to say yes. Ten years ago, comfort packages weren't offered on trucks. People are saying, 'I want those even if those vehicles are used to haul mulch.' " A very telling sign that truck prices are beginning to push people out is the massive difference between the expected and the actually average transactional price. Cox Automotive reports that buyers of a full-size pickup expected to pay an average of $38,529 through the month August. The actual average transaction price through August was $47,987 according to Cox. Also seeing a rise is the average income of truck buyers. Alexander Edwards, president of consultancy Strategic Vision tells the Free Press that the median household income of a truck buyer has risen form $76,660 in 2009 to $100,305 in 2018. More telling is that the truck buyer has a higher income than a car buyer ($95,355). Some are beginning to worry that pickup trucks are becoming a bit too expensive. "In 1988, I sold my first pickup at $20,000 and I thought, 'Man, who could ever afford this?' Now, they're $60,000, $70,000, $80,000. ... I'm not sure everybody wants all that technology, but we're adding all of it. We're actually in the luxury business at those prices," said Charlie Gilchrist, owner of Gilchrist Automotive in the Dallas-Fort Worth area. A survey done by CarGurus correlates Gilchrist's view. Asking 203 current pickup owners from their user panel, CarGurus reports that owners would call paying $35,000 on a truck a good deal. But increase it to the average price of $45,200 and its too much. Respondents also said they would be willing to give up such features as a automatic open-close tailgate and Wi-Fi hotspot for a lower price. “This survey showed that pickup truck owners believe some of the new technology is nice to have, but not essential and not worth the price. We’re at an interesting time in the pickup truck category where many people are using their pickup trucks for more than just work. Those looking for a truck purely for work purposes don’t need all of the new luxury features, and those looking for a truck for commuting or leisure don’t need all of the new work features,” said Madison Gross, CarGurus' senior manager of customer insights. Source: Detroit Free Press View full article
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With more people trending towards trucks and utility vehicles, it would be expected that prices on cars would be falling. But not on used cars according to Edmunds. In their latest Used Car Report, Edmunds says the average price for a used subcompact rose 3 percent in the first quarter. Compacts saw their average price increase by 3.9 percent. The reason according to the report is due to the increasing cost for a gallon of gas. "Used-car shoppers are typically more price-sensitive to changes in the market, but this is the first time in years that we're seeing renewed demand for smaller vehicles With rising fuel costs breathing fresh air into this segment, subcompact and compact cars are finally retaining value again," said Ivan Drury, senior manager of industry analysis at Edmunds. With rising gas prices, the expectation would be that prices on used trucks and utility vehicles would drop. But Edmunds says prices for these models are holding steady as buyers are willing to pay a bit more at the pump as they place "value on increased cargo capacity, ride height, and other SUV and truck features". Source: Edmunds View full article
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Prices of Used Subcompact and Compact Vehicles Are Rising
William Maley posted an article in Automotive Industry
With more people trending towards trucks and utility vehicles, it would be expected that prices on cars would be falling. But not on used cars according to Edmunds. In their latest Used Car Report, Edmunds says the average price for a used subcompact rose 3 percent in the first quarter. Compacts saw their average price increase by 3.9 percent. The reason according to the report is due to the increasing cost for a gallon of gas. "Used-car shoppers are typically more price-sensitive to changes in the market, but this is the first time in years that we're seeing renewed demand for smaller vehicles With rising fuel costs breathing fresh air into this segment, subcompact and compact cars are finally retaining value again," said Ivan Drury, senior manager of industry analysis at Edmunds. With rising gas prices, the expectation would be that prices on used trucks and utility vehicles would drop. But Edmunds says prices for these models are holding steady as buyers are willing to pay a bit more at the pump as they place "value on increased cargo capacity, ride height, and other SUV and truck features". Source: Edmunds -
Sales of new cars in the U.S. have been dropping in the past three months and analysts believe April's sales results will be much the same. But why are sales falling? It comes down to prices of new cars going up and up. According to data from ALG True Car, the average new-car price rose two percent when compared to last year. Kelly Blue Book reports that the average transaction price in March increased 1.7 percent to $34,342 when compared to the same time last year. There are a number of factors as to why consumers are balking at larger prices; credit not being as easy to attain, younger buyers being saddled with debt, and inflation. “It’s not just the price of the cars -- it’s the price of everything else. The price of things like health care, shelter -- all of that is fighting for the budget,” said Michelle Krebs, a senior analyst with Cox Automotive. Automakers are trying to stem this decline by increasing the amount of incentives available. J.D. Power reports incentive spending reached a new high in the first half of April with an average of $3,499. Source: Bloomberg View full article
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Sales of new cars in the U.S. have been dropping in the past three months and analysts believe April's sales results will be much the same. But why are sales falling? It comes down to prices of new cars going up and up. According to data from ALG True Car, the average new-car price rose two percent when compared to last year. Kelly Blue Book reports that the average transaction price in March increased 1.7 percent to $34,342 when compared to the same time last year. There are a number of factors as to why consumers are balking at larger prices; credit not being as easy to attain, younger buyers being saddled with debt, and inflation. “It’s not just the price of the cars -- it’s the price of everything else. The price of things like health care, shelter -- all of that is fighting for the budget,” said Michelle Krebs, a senior analyst with Cox Automotive. Automakers are trying to stem this decline by increasing the amount of incentives available. J.D. Power reports incentive spending reached a new high in the first half of April with an average of $3,499. Source: Bloomberg -
Another week has passed and some new information has come to light in the Volkswagen diesel scandal. First off, Volkswagen has confirmed one of their diesel engines doesn't have the cheat. The EA 288 TDI engine used in vehicles for the European-market has been checked out to see if it had the illegal software. In a statement issued by Volkswagen, the engine did not have “software constituting an improper defeat device as defined in laws is installed in vehicles with EA288 EU5 as well as EU6 engines in the European Union with those engines comply with legal requirements and environmental standards." Also, one of the questions that have been up in the air is how would the scandal affect the prices of used Volkswagen TDI models. Kelly Blue Book looked at data from auto auctions before and after the scandal broke. According to their research, the average price of diesel models dropped 16 percent. Average prices of gas models dropped 2.9 percent in the same time. "According to Kelley Blue Book Field Analysts, some auctions are still holding off on selling the affected Volkswagen inventory. While Volkswagen diesel auction prices are in decline, we could see larger fluctuations depending on how this inventory is handled," said Tim Fleming, analyst for Kelley Blue Book. Source: Volkswagen, Kelly Blue Book Press Releases are on Page 2 Volkswagen confirms: EA288 engines designed for EU5 and EU6 are not affected Thorough appraisal of the Diesel emissions issue Volkswagen confirms today that no software constituting an improper defeat device as defined in law is installed in vehicles with EA 288 EU5 as well as EU6-engines in the European Union. Consequently, new vehicles of the Volkswagen Group offered within the European Union with those engines comply with legal requirements and environmental standards. Volkswagen AG is systematically reviewing this issue worldwide. The group strives for a holistic solution for complying with the respective valid standards. After thorough examination it is now confirmed that no software constituting an improper defeat device as defined in law is installed in vehicles with EA 288 EU5-engines. Before, Volkswagen Group has confirmed that new EU6-compliant vehicles offered within the European Union fulfil all legal requirements and environmental standards. Volkswagen customers can visit the corporate websites such as www.volkswagen.de/info, which was set up on October 2, 2015 and enter the chassis number of their vehicle to find out straight away whether their vehicles are affected. Similar customer websites are active in the other EU countries and for the Audi, SEAT and Škoda brands. Work on the technical solutions detailed in the plan of measures is currently proceeding at full speed. Remedial action on the vehicles will begin in January 2016 – at no cost to customers. The measures are currently being developed for each affected series and each affected model year and will first be presented to the responsible authorities. Volkswagen will subsequently inform the owners of these vehicles over the next weeks and months. VOLKSWAGEN DIESEL VEHICLE PRICES DECLINE NEARLY 16 PERCENT, ACCORDING TO KELLEY BLUE BOOK DATA New-Car Shopping Activity Also Impacted by Recent Emissions Issue IRVINE, Calif., October 21, 2015 – Kelley Blue Book www.kbb.com, the only vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry, today reports that average auction prices, along with new-car shopping activity on KBB.com, for Volkswagen diesel vehicles have declined four weeks after the diesel emissions issue was announced. The average auction price for Volkswagen diesel models dropped by nearly 16 percent since the news broke of the emissions crisis.[1] The average auction price for the brand's gasoline-powered vehicles declined by 2.9 percent.1 On KBB.com, Volkswagen new-car shopping activity for affected TDI models has decreased on average by 2.4 percent. "According to Kelley Blue Book Field Analysts, some auctions are still holding off on selling the affected Volkswagen inventory," said Tim Fleming, analyst for Kelley Blue Book. "While Volkswagen diesel auction prices are in decline, we could see larger fluctuations depending on how this inventory is handled." Volkswagen Site Metrics from Kelley Blue Book's KBB.com* The Volkswagen Golf SportWagen and Golf have seen the most significant declines in shopping activity, with decreases of 6.2 percent and 3.7 percent respectively. The Audi A3 and Volkswagen Jetta SportWagen are the only TDI models seeing increases in activity, at 1.6 and 3 percent respectively, which is consistent with segment-level traffic on KBB.com. Audi A3 shoppers are increasingly cross-shopping competing luxury models following the announcement. The most highly cross-shopped vehicles are the Lexus NX, BMW 2-Series and Mercedes-Benz CLA. ** * Kelley Blue Book's KBB.com Site Traffic, Comparing September Pre- (Weeks of August 31-September 13) and Post- (Weeks of September 14-October 18) Announcement Data. Please note: Data is compiled weekly (Monday-Sunday). ** Kelley Blue Book's KBB.com Cross-Shopping Data for Week of October 12-18, 2015 "During the past four weeks following the emissions announcement, traffic to KBB.com has generally decreased after an initial surge in interest for Volkswagen diesel models, likely because of the stop-sell and negative press," said Arthur Henry, senior manager of Strategic Insights for Kelley Blue Book. "Interestingly, with regard to cross-shopping data, consumers are not looking at fuel-efficient or hybrid vehicles. For example, shoppers interested in the Jetta TDI are looking to the Honda Civic, Mazda3 and Ford Fusion as alternatives, according to cross-shopping data from KBB.com." -
Another week has passed and some new information has come to light in the Volkswagen diesel scandal. First off, Volkswagen has confirmed one of their diesel engines doesn't have the cheat. The EA 288 TDI engine used in vehicles for the European-market has been checked out to see if it had the illegal software. In a statement issued by Volkswagen, the engine did not have “software constituting an improper defeat device as defined in laws is installed in vehicles with EA288 EU5 as well as EU6 engines in the European Union with those engines comply with legal requirements and environmental standards." Also, one of the questions that have been up in the air is how would the scandal affect the prices of used Volkswagen TDI models. Kelly Blue Book looked at data from auto auctions before and after the scandal broke. According to their research, the average price of diesel models dropped 16 percent. Average prices of gas models dropped 2.9 percent in the same time. "According to Kelley Blue Book Field Analysts, some auctions are still holding off on selling the affected Volkswagen inventory. While Volkswagen diesel auction prices are in decline, we could see larger fluctuations depending on how this inventory is handled," said Tim Fleming, analyst for Kelley Blue Book. Source: Volkswagen, Kelly Blue Book Press Releases are on Page 2 Volkswagen confirms: EA288 engines designed for EU5 and EU6 are not affected Thorough appraisal of the Diesel emissions issue Volkswagen confirms today that no software constituting an improper defeat device as defined in law is installed in vehicles with EA 288 EU5 as well as EU6-engines in the European Union. Consequently, new vehicles of the Volkswagen Group offered within the European Union with those engines comply with legal requirements and environmental standards. Volkswagen AG is systematically reviewing this issue worldwide. The group strives for a holistic solution for complying with the respective valid standards. After thorough examination it is now confirmed that no software constituting an improper defeat device as defined in law is installed in vehicles with EA 288 EU5-engines. Before, Volkswagen Group has confirmed that new EU6-compliant vehicles offered within the European Union fulfil all legal requirements and environmental standards. Volkswagen customers can visit the corporate websites such as www.volkswagen.de/info, which was set up on October 2, 2015 and enter the chassis number of their vehicle to find out straight away whether their vehicles are affected. Similar customer websites are active in the other EU countries and for the Audi, SEAT and Škoda brands. Work on the technical solutions detailed in the plan of measures is currently proceeding at full speed. Remedial action on the vehicles will begin in January 2016 – at no cost to customers. The measures are currently being developed for each affected series and each affected model year and will first be presented to the responsible authorities. Volkswagen will subsequently inform the owners of these vehicles over the next weeks and months. VOLKSWAGEN DIESEL VEHICLE PRICES DECLINE NEARLY 16 PERCENT, ACCORDING TO KELLEY BLUE BOOK DATA New-Car Shopping Activity Also Impacted by Recent Emissions Issue IRVINE, Calif., October 21, 2015 – Kelley Blue Book www.kbb.com, the only vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry, today reports that average auction prices, along with new-car shopping activity on KBB.com, for Volkswagen diesel vehicles have declined four weeks after the diesel emissions issue was announced. The average auction price for Volkswagen diesel models dropped by nearly 16 percent since the news broke of the emissions crisis.[1] The average auction price for the brand's gasoline-powered vehicles declined by 2.9 percent.1 On KBB.com, Volkswagen new-car shopping activity for affected TDI models has decreased on average by 2.4 percent. "According to Kelley Blue Book Field Analysts, some auctions are still holding off on selling the affected Volkswagen inventory," said Tim Fleming, analyst for Kelley Blue Book. "While Volkswagen diesel auction prices are in decline, we could see larger fluctuations depending on how this inventory is handled." Volkswagen Site Metrics from Kelley Blue Book's KBB.com* The Volkswagen Golf SportWagen and Golf have seen the most significant declines in shopping activity, with decreases of 6.2 percent and 3.7 percent respectively. The Audi A3 and Volkswagen Jetta SportWagen are the only TDI models seeing increases in activity, at 1.6 and 3 percent respectively, which is consistent with segment-level traffic on KBB.com. Audi A3 shoppers are increasingly cross-shopping competing luxury models following the announcement. The most highly cross-shopped vehicles are the Lexus NX, BMW 2-Series and Mercedes-Benz CLA. ** * Kelley Blue Book's KBB.com Site Traffic, Comparing September Pre- (Weeks of August 31-September 13) and Post- (Weeks of September 14-October 18) Announcement Data. Please note: Data is compiled weekly (Monday-Sunday). ** Kelley Blue Book's KBB.com Cross-Shopping Data for Week of October 12-18, 2015 "During the past four weeks following the emissions announcement, traffic to KBB.com has generally decreased after an initial surge in interest for Volkswagen diesel models, likely because of the stop-sell and negative press," said Arthur Henry, senior manager of Strategic Insights for Kelley Blue Book. "Interestingly, with regard to cross-shopping data, consumers are not looking at fuel-efficient or hybrid vehicles. For example, shoppers interested in the Jetta TDI are looking to the Honda Civic, Mazda3 and Ford Fusion as alternatives, according to cross-shopping data from KBB.com." View full article
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The Average Price of A Used Car Has Reached A New High
William Maley posted an article in Automotive Industry
With the average price of new cars on the rise, the price of used cars follows suit. A new study done by Edmunds finds the average price of a used car has hit a new record high in the second quarter. The average price of a used car has climbed to $18,800, up 7.6 percent when compared to the same time last year. "People are buying more trucks and SUVs, and they're getting them better equipped. More expensive new vehicles means more expensive used vehicles," said Jessica Caldwell, analyst at Edmunds.com. What is causing the uptick in used car prices? The same items which are causing new car prices to go up; better economic outlook, low unemployment, low-interest rates, and low gas prices. But also helping the increase is the amount of off-lease vehicles entering into the used car marketplace. "With inventory finally at a better place, people have a lot more options," Caldwell said. Source: Chicago Tribune via The Detroit News -
With the average price of new cars on the rise, the price of used cars follows suit. A new study done by Edmunds finds the average price of a used car has hit a new record high in the second quarter. The average price of a used car has climbed to $18,800, up 7.6 percent when compared to the same time last year. "People are buying more trucks and SUVs, and they're getting them better equipped. More expensive new vehicles means more expensive used vehicles," said Jessica Caldwell, analyst at Edmunds.com. What is causing the uptick in used car prices? The same items which are causing new car prices to go up; better economic outlook, low unemployment, low-interest rates, and low gas prices. But also helping the increase is the amount of off-lease vehicles entering into the used car marketplace. "With inventory finally at a better place, people have a lot more options," Caldwell said. Source: Chicago Tribune via The Detroit News View full article
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If you are considering buying a used car this year, then we have some good news for you. A new vehicle depreciation report from used car value service, Black Book and Fitch Ratings Inc., says that 2015 will see used car values depreciate 14.5 percent. This is an increase from 2014's deprecation rate of 12.1 percent. So why the increase in depreciation? It comes down to two key factors; an increased supply in used cars and a larger volume of off-lease vehicles. “2014 depreciation was defined by pockets of volatility due to seasonality, harsh weather patterns and falling fuel prices impacting smaller cars and trucks of all sizes. Looking ahead, lower consumer demand and CAFÉ-driven model competition will place higher depreciation pressure on smaller car segments particularly, but trucks should have stable retention in 2015 due to balanced production levels and strong housing and service economies,” said Anil Goyal, Vice President of Analytics and Strategic Partnerships for Black Book. Source: Auto Guide, Kicking Tires View full article
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If you are considering buying a used car this year, then we have some good news for you. A new vehicle depreciation report from used car value service, Black Book and Fitch Ratings Inc., says that 2015 will see used car values depreciate 14.5 percent. This is an increase from 2014's deprecation rate of 12.1 percent. So why the increase in depreciation? It comes down to two key factors; an increased supply in used cars and a larger volume of off-lease vehicles. “2014 depreciation was defined by pockets of volatility due to seasonality, harsh weather patterns and falling fuel prices impacting smaller cars and trucks of all sizes. Looking ahead, lower consumer demand and CAFÉ-driven model competition will place higher depreciation pressure on smaller car segments particularly, but trucks should have stable retention in 2015 due to balanced production levels and strong housing and service economies,” said Anil Goyal, Vice President of Analytics and Strategic Partnerships for Black Book. Source: Auto Guide, Kicking Tires -
Since the recession has ended, the average price of a used car was soared due limited supply. But The Detroit News says with more vehicles coming in due to leases coming to an end, prices are beginning to fall. According to CNW Research, the average transaction price of a used car in September was $10,963. Compared to the same time last year, the average has dropped 2.1 percent. "During the recession, it almost cost as much to get a used car as it did to get a new car, but now the market is going back to historical norms and it's going to be better every month. From 2008 to 2012, there was a significant growth in the number of leased cars and now they're all coming back to the market. As supply is increasing, auction values are dropping ... making used cars more affordable," said Larry Dominique, vice president of TrueCar. Used car supplies are on the rise as well, with 9.76 million vehicles sitting on used lots in September. That's an increase of 1.5 percent when compared to the same time last year. But there are downsides to increase in used car supplies. Analysts say the increase of supplies means it will be harder for dealers to move vehicles. Also expect an increase in lease rates. Source: The Detroit News William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. View full article
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Since the recession has ended, the average price of a used car was soared due limited supply. But The Detroit News says with more vehicles coming in due to leases coming to an end, prices are beginning to fall. According to CNW Research, the average transaction price of a used car in September was $10,963. Compared to the same time last year, the average has dropped 2.1 percent. "During the recession, it almost cost as much to get a used car as it did to get a new car, but now the market is going back to historical norms and it's going to be better every month. From 2008 to 2012, there was a significant growth in the number of leased cars and now they're all coming back to the market. As supply is increasing, auction values are dropping ... making used cars more affordable," said Larry Dominique, vice president of TrueCar. Used car supplies are on the rise as well, with 9.76 million vehicles sitting on used lots in September. That's an increase of 1.5 percent when compared to the same time last year. But there are downsides to increase in used car supplies. Analysts say the increase of supplies means it will be harder for dealers to move vehicles. Also expect an increase in lease rates. Source: The Detroit News William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. -
William Maley Staff Writer - CheersandGears.com August 7, 2013 Yesterday at at the Center for Automotive Research’s Management Briefing Seminars, General Motors' Chief Economist Mustafa Mohatarem told attendees that the reason young people aren't buying cars because they're not interested. It's more to do with economic reasons. Mohatarem downplayed the reason that young kids are more interested in the internet and what's the latest hot thing in tech, and pushed the rising costs of cars, repairs, and insurance as some of the reasons why young people aren't buying vehicles. “I don’t see any evidence that the young people are losing interest in cars," Mohatarem said. He says the biggest problem facing young people buying cars is they are having a challenging time finding jobs. Also, high student loan debt are causing many to skip buying a car. “Buying a car is less attainable for the young, but that quickly changes as they get older," he said. Source: The Detroit News William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. -
William Maley Staff Writer - CheersandGears.com August 7, 2013 Yesterday at at the Center for Automotive Research’s Management Briefing Seminars, General Motors' Chief Economist Mustafa Mohatarem told attendees that the reason young people aren't buying cars because they're not interested. It's more to do with economic reasons. Mohatarem downplayed the reason that young kids are more interested in the internet and what's the latest hot thing in tech, and pushed the rising costs of cars, repairs, and insurance as some of the reasons why young people aren't buying vehicles. “I don’t see any evidence that the young people are losing interest in cars," Mohatarem said. He says the biggest problem facing young people buying cars is they are having a challenging time finding jobs. Also, high student loan debt are causing many to skip buying a car. “Buying a car is less attainable for the young, but that quickly changes as they get older," he said. Source: The Detroit News William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. View full article
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William Maley Staff Writer - CheersandGears.com July 30, 2013 Interested in buying a used car? Then we got some good news for you. According to Associated Press (via The Detroit News), prices of used cars are dropping. Despite hitting an all-time high back in 2011 thanks to fewer used cars in stock, prices since then have been declining. According to to data from auction company Manheim, the average sale price of a vehicle at auction in June was $11,031, down 6 percent when compared to the peak of used car prices in May 2011. The reason? Sales of new vehicles are on the rise, which means an increase of used cars. Which vehicle segment saw the largest drop? That would be hybrids which saw a 15 percent drop in their three-year value. Following that are compact cars which saw an 8.5 percent drop and small SUVs with a 7 percent drop. Luxury vehicles and trucks saw the lowest drop of one percent. Source: The Detroit News William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. -
William Maley Staff Writer - CheersandGears.com July 30, 2013 Interested in buying a used car? Then we got some good news for you. According to Associated Press (via The Detroit News), prices of used cars are dropping. Despite hitting an all-time high back in 2011 thanks to fewer used cars in stock, prices since then have been declining. According to to data from auction company Manheim, the average sale price of a vehicle at auction in June was $11,031, down 6 percent when compared to the peak of used car prices in May 2011. The reason? Sales of new vehicles are on the rise, which means an increase of used cars. Which vehicle segment saw the largest drop? That would be hybrids which saw a 15 percent drop in their three-year value. Following that are compact cars which saw an 8.5 percent drop and small SUVs with a 7 percent drop. Luxury vehicles and trucks saw the lowest drop of one percent. Source: The Detroit News William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. View full article
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William Maley Staff Writer - CheersandGears.com July 1, 2013 If you been looking at used midsize trucks and wondering why the prices are somewhat high, a new study has an answer to that. According to Black Book, the deprecation rate is much lower on midsize trucks than the whole used car market. In June, used cars as a whole saw a deprecation hit of 1.3 percent. In that same time, midsize trucks saw a 0.7 deprecation hit. Look over the past year and the margin grows wider. Used cars deprecated 13.7 percent, while midsize trucks deprecated 5.1 percent. What's the cause? Ricky Beggs, senior vice president and Managing Editor with Black Book says the reason is due to so few brand-new midsize trucks available. Currently the only midsize trucks on the market include the Chevrolet Colorado, Nissan Frontier, and Toyota Tacoma. Source: Black Book William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] you can follow him on twitter at @realmudmonster. Press Release is on Page 2 Lack Of New Model Options Drives Used MidSize Pickup Prices Used vehicles depreciated a very moderate -1.3% across all segments during June. However, the Midsize Pickups category saw very limited depreciation, with just a -0.7% monthly change for model years 2007-2011. The difference in depreciation is even more noticeable when the twelve-month depreciation rate is compared. Used vehicles overall have depreciated -13.7% during the last twelve months. However, Midsize Pickups have seen just a -5.1% change during the same time period. Average prices on Midsize Pickups currently stand at $15,630 compared with year-ago prices of $16,470. The 2010 model year Midsize Pickups saw particularly low depreciation over the last twelve months, with just a slight change of -3.7% from original prices. The fan-favorite Midsize Pickups category includes vehicles such as the GMC Canyon and Chevrolet Colorado (which currently are no longer sold as new), Dodge Dakota and Honda Ridgeline. According to Ricky Beggs, Midsize Pickups are showing strong price retention mostly because a lack of model options at new retail have driven up demand for the vehicles. "Manufacturers shifted more production to the Fullsize Pickups during the last several years because of their profitability, versatility and improved fuel economy, and they have not replenished models that were discontinued." Here is the complete breakdown of value changes of used cars and Midsize Pickups (2007-2011): Vehicle 7/1/12 6/1/13 1M Chg 7/1/13 3M Chg 12M Chg 5-Year Average Used $20,428 $17,874 -1.3% $17,636 -2.4% -13.7% 5-Year Average MPT $16,470 $15,733 -0.7% $15,630 0.2% -5.1% 2011 Model Year MPT $21,088 $20,256 -0.3% $20,188 0.2% -4.3% 2010 Model Year MPT $19,355 $18,745 -0.5% $18,645 0.5% -3.7% 2009 Model Year MPT $16,579 $15,717 -0.6% $15,625 -0.9% -5.8% 2008 Model Year MPT $14,604 $13,888 -0.9% $13,758 0.6% -5.8% 2007 Model Year MPT $12,746 $12,071 -1.0% $11,954 0.6% -6.2% -
William Maley Staff Writer - CheersandGears.com July 1, 2013 If you been looking at used midsize trucks and wondering why the prices are somewhat high, a new study has an answer to that. According to Black Book, the deprecation rate is much lower on midsize trucks than the whole used car market. In June, used cars as a whole saw a deprecation hit of 1.3 percent. In that same time, midsize trucks saw a 0.7 deprecation hit. Look over the past year and the margin grows wider. Used cars deprecated 13.7 percent, while midsize trucks deprecated 5.1 percent. What's the cause? Ricky Beggs, senior vice president and Managing Editor with Black Book says the reason is due to so few brand-new midsize trucks available. Currently the only midsize trucks on the market include the Chevrolet Colorado, Nissan Frontier, and Toyota Tacoma. Source: Black Book William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] you can follow him on twitter at @realmudmonster. Press Release is on Page 2 Lack Of New Model Options Drives Used MidSize Pickup Prices Used vehicles depreciated a very moderate -1.3% across all segments during June. However, the Midsize Pickups category saw very limited depreciation, with just a -0.7% monthly change for model years 2007-2011. The difference in depreciation is even more noticeable when the twelve-month depreciation rate is compared. Used vehicles overall have depreciated -13.7% during the last twelve months. However, Midsize Pickups have seen just a -5.1% change during the same time period. Average prices on Midsize Pickups currently stand at $15,630 compared with year-ago prices of $16,470. The 2010 model year Midsize Pickups saw particularly low depreciation over the last twelve months, with just a slight change of -3.7% from original prices. The fan-favorite Midsize Pickups category includes vehicles such as the GMC Canyon and Chevrolet Colorado (which currently are no longer sold as new), Dodge Dakota and Honda Ridgeline. According to Ricky Beggs, Midsize Pickups are showing strong price retention mostly because a lack of model options at new retail have driven up demand for the vehicles. "Manufacturers shifted more production to the Fullsize Pickups during the last several years because of their profitability, versatility and improved fuel economy, and they have not replenished models that were discontinued." Here is the complete breakdown of value changes of used cars and Midsize Pickups (2007-2011): Vehicle 7/1/12 6/1/13 1M Chg 7/1/13 3M Chg 12M Chg 5-Year Average Used $20,428 $17,874 -1.3% $17,636 -2.4% -13.7% 5-Year Average MPT $16,470 $15,733 -0.7% $15,630 0.2% -5.1% 2011 Model Year MPT $21,088 $20,256 -0.3% $20,188 0.2% -4.3% 2010 Model Year MPT $19,355 $18,745 -0.5% $18,645 0.5% -3.7% 2009 Model Year MPT $16,579 $15,717 -0.6% $15,625 -0.9% -5.8% 2008 Model Year MPT $14,604 $13,888 -0.9% $13,758 0.6% -5.8% 2007 Model Year MPT $12,746 $12,071 -1.0% $11,954 0.6% -6.2% View full article
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Kelly Blue Book Forecasts Lower Resale Prices For The 2013 Nissan Leaf
William Maley posted an article in Nissan
William Maley Staff Writer - CheersandGears.com June 5, 2013 Kelly Blue Book expects that prices for used 2013 Nissan Leafs will be lower than the 2012 Leaf. Announced this week, Kelly Blue Book forecasts that after three years, a 2013 Nissan Leaf will retain 35 percent of its original sticker price. That is five percent less than 2012 Leaf's resale value after three years. A major reason for the drop is attributed to 2013's lower MSRP. A 2013 Leaf starts at $29,650, a drop of $6,400 when compared to the 2012 model. Also hurting the resale value of the Leaf are nearly new models crossing the auction block. Ricky Beggs, managing editor of Black Book tells Automotive News he has seen a number of 2011 Leafs cross the auction block with fewer than 10,000 miles, and some with as few as 1,200 miles. "There were some Leafs purchased by a rental car company that didn't get a high amount of usage. The rental company had committed to buying, so almost immediately after the rental company took delivery they got remarketed," said Beggs. The average price of a Leaf at auction was just $13,700 in May, according to Black Book. Source: Automotive News (Subscription Required) William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. -
William Maley Staff Writer - CheersandGears.com June 5, 2013 Kelly Blue Book expects that prices for used 2013 Nissan Leafs will be lower than the 2012 Leaf. Announced this week, Kelly Blue Book forecasts that after three years, a 2013 Nissan Leaf will retain 35 percent of its original sticker price. That is five percent less than 2012 Leaf's resale value after three years. A major reason for the drop is attributed to 2013's lower MSRP. A 2013 Leaf starts at $29,650, a drop of $6,400 when compared to the 2012 model. Also hurting the resale value of the Leaf are nearly new models crossing the auction block. Ricky Beggs, managing editor of Black Book tells Automotive News he has seen a number of 2011 Leafs cross the auction block with fewer than 10,000 miles, and some with as few as 1,200 miles. "There were some Leafs purchased by a rental car company that didn't get a high amount of usage. The rental company had committed to buying, so almost immediately after the rental company took delivery they got remarketed," said Beggs. The average price of a Leaf at auction was just $13,700 in May, according to Black Book. Source: Automotive News (Subscription Required) William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. View full article
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William Maley Staff Writer - CheersandGears.com August 23, 2012 Subaru has announced pricing for the new XV Crosstrek, aka the rugged Impreza. Starting at $21,995 (doesn't include a $795 destination charge), the XV Crosstrek gets rugged, SUV-like styling, a stiffened suspension, and 8.7 inches of ground clearance (about 3 inches higher than the normal Impreza). Standard equipment for the XV Crosstrek include a 2.0L boxer four-cylinder that produces 148 HP and 145 lb-ft of torque, five-speed manual, a six-speaker AM/FM/CD sound system with iPod integration, USB and AUX inputs, cruise control, Bluetooth connectivity, and 17-inch alloy wheels. The options list includes a CVT, leather, sunroof, and a navigation system. Fuel economy for XV Crosstrek is, Manual: 23 City/30 Highway CVT: 25 City/33 Highway The XV Crosstrek arrives at Subaru dealers later in the fall. Source: Subaru William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. View full article
