Tag: car prices

By on April 12, 2019

China’s auto sales declined for the ninth consecutive month in March, further proving that the market isn’t as infallible as once thought. The assumption was that, as North America surpassed peak growth and flattened out, Chinese auto sales would continue an upward trajectory. But, while China did surpass the U.S. in becoming the world’s largest auto market, it’s not living up to its billing as a golden goose.

That’s not to suggest the U.S. is about to stand triumphantly atop that mountain. Automakers are issuing profit warnings for 2019 and Moody’s Investors Service expects light vehicle sales to fall 1.2 percent this year.

“The accommodative financing environment that had helped buoy U.S. car sales is receding. Maintaining operating and financial discipline will be crucial [for 2019],” the bond credit rating business advised. (Read More…)

By on April 4, 2019

Image: GM

As new vehicle prices continue to climb, many wonder how high MSRPs can go before the public decides to take a pass — assuming they haven’t already. Sales growth is slowing, even in seemingly bulletproof markets like China. Even before this ominous backdrop unfurled, dealers were making noise about new car prices that had grown overly ambitious, claiming they couldn’t endure another period of sustained economic hardship.

Edmunds estimates that the average transaction price of a new vehicles reached $36,495 in December 2018 — a 3 percent increase compared to December of 2016 and a 13 percent increase compared to December of 2012. Taking that knowledge, Road & Track compiled a broader picture of the new-car market and where it might be going.

Spoilers ahead if you don’t want the unpleasant non-surprise ruined.  (Read More…)

By on June 26, 2018

Last week, we discussed how the motorcycle industry’s total failure to entice new riders for over a decade has come back to bite it in the ass. Two-wheeled ownership declined drastically in the United States after the Great Recession and never really bounced back. Blame a disinterested population of youngsters with less discretionary funds and few entry-level options to consider.

I speculated that automakers could be on a similar path, despite the passenger car segment being more of a necessity for average commuters and less apt to collapse outright. But that isn’t to presume they might not be subject to similar pitfalls, and we’ve a new one to consider. Harley-Davidson, which serves as the poster child for the motorcycle industry’s current crisis, recently announced it will end all U.S. production of motorcycles sold in Europe.

Those bikes will now be manufactured overseas. The company said in a regulatory filing with the U.S. Securities and Exchange Commission that retaliatory tariffs levied by the European Union on motorcycles exported from the U.S. jumped from 6 percent to 31 percent. Harley-Davidson’s already expensive products come at an additional premium in Europe, and the the company estimates the new fines will add another $2,200 per motorcycle, on average. (Read More…)

By on June 20, 2018

If you think car enthusiasts are a dying breed, you should take a look at motorcyclists. The two-wheeled industry is in serious trouble. A total failure in marketing occurred over the past decade. New riders aren’t coming in fast enough to replace the glut of Baby Boomers rapidly aging out of the market, and there’s a looming paranoia that self-driving vehicles could push bikes off the road entirely.

In 2017, U.S. motorcycle sales were down 11 percent, and no company was hit harder than Harley-Davidson. The brand has the oldest consumer base and has repeatedly failed at recruiting younger riders. While it builds a fine product, it’s not one that appeals to millennials. This generational cohort proved hesitant to engage in motorcycling as a pastime — a situation not helped by having less disposable income than Generation X or the Boomers did at the same stage in their lives. Young women are also poised to start out-earning young men, and few brands have successfully tapped into the female demographic.  (Read More…)

By on June 21, 2017

2018 Toyota Camry XLE Hybrid - Image: Toyota The 2018 Toyota Camry will be priced from $24,380, including delivery, when it goes on sale this summer — a $425 increase compared with the base 2017 Camry.

Riding on an evolution of the Prius and C-HR’s Toyota New Global Architecture, the 2018 Camry is an all-new design for the first time since the 2012 model year. Market positioning is key, even for a Camry that’s been America’s best-selling car for 15 consecutive years, as demand for midsize sedans is quickly falling and even Toyota is seeing greater interest in the RAV4 than the historically dominant Camry. With new competitors approaching from Honda and Nissan, Toyota isn’t fooling around with this hugely important launch.

All eighth-generation Camrys are equipped with an eight-speed automatic. There’s essentially no tangible weight increase. The Camry offers the most standard horsepower in the midsize segment, the optional 3.5-liter V6 now produces 301 horsepower, and all Camrys now include Toyota Safety Sense P with pedestrian detection, radar cruise control, lane departure alert with steering assist, and auto high beams.

Perhaps most notably, highway fuel economy jumps all the way to 41 miles per gallon; above 50 mpg for Camry Hybrids. (Read More…)

By on June 16, 2017

2017 Mazda CX-5 white - Image: MazdaSitting just $500 below the top-spec 2017 Mazda CX-5 Grand Touring is a new Grand Select trim.

Mazda spokesperson Jacob Brown tells CarsDirect, which spotted the addition, that the 2017 CX-5 Grand Select is an attempt by Mazda USA to examine consumer tastes.

Grand Select, Brown says, “will be offered for a limited time and will test the waters for customer options preferences in the marketplace.”

Like the CX-5 Grand Touring, the $29,835 Grand Select is a very well-equipped, premium-aping compact crossover. Unlike the CX-5 Grand Touring, the Grand Select lacks forward collision warning, adaptive cruise, auto high beams, lane departure warning, and lane keeping assist. A few years down the increasingly autonomous road, those are the kinds of features that might be a real boon to resale.

Sure you wanna save $500? (Read More…)

By on May 23, 2017

JM Lexus Margate Florida - Image: Lexus.com

Half an hour from Fort Lauderdale, in Margate, Florida, sits JM Lexus, the highest-volume Lexus dealership in the United States.

Even by Lexus standards, where throughput is the best of any premium automaker operating in America, JM Lexus’ 8,000-unit new vehicle sales tally in 2016 was striking. That’s more than 150 new luxury cars, crossovers, and SUVs sold each week. That’s roughly six times the volume achieved by the typical Lexus dealer.

And JM Lexus, perennially the top Lexus dealer in America, does so as part of the Lexus Plus strategy: no negotiating, a single representative per customer, fixed prices for new and used cars as well as service fees and accessories.

Perhaps there’s a lesson to be learned by Lexus’ other dealers. For the time being, according to Automotive News, only 5 percent of Toyota’s premium brand stores operate under the Lexus Plus model. (Read More…)

By on April 5, 2017

used cars used car lot

The auto industry has really turned a corner over the last decade, but this year has been underlined by an unsettling lack of interest in new vehicles — potentially hinting at the return of a industry-wide crisis. The good news is that abnormally high used car prices are sinking like a stone. The flip-side of that coin, however, means that we could be approaching darker days as more consumers shy away from the new vehicle market.

Most carmakers spent last year enjoying record sales but seemed keenly aware that the market was about to plateau. However, 2017 sales have stagnated more than predicted, with rising interest rates and deflated prices seen on second-hand automobiles. It all looks very pre-recessionish and some analysts are beginning to make fearful noises.  (Read More…)

By on January 24, 2017

Kia has released the price list for its new hybrid crossover, the Niro.

The Niro, which launches in the first quarter of this year, carries a base sticker price of $23,785 after destination. Carrying a brand name that doesn’t immediately spring to mind when utility-hungry shoppers think “crossovers,” the front-wheel-drive-only hybrid Niro stands out on the basis of its powertrain alone, but is it what people want? (Read More…)

By on October 4, 2016

green subaru xv crosstrek hybrid

It may have replaced Volvo wagons and Saab 900s in the driveways of the middle to upper-middle class, but Subaru couldn’t get its growing customer base to cosy up to its lone hybrid model.

Amid slow sales, Subaru has decided to cut the Crosstrek Hybrid loose, Cars Direct reports. The slightly greener variant disappears for the 2017 model year, meaning the automaker’s lineup returns to strictly gas-only offerings. (Read More…)

By on August 4, 2016

Used cars

There’s been a slow, yet steady change in the automotive marketplace over the last eight years, and you, the consumer, have been the lobster sitting in the pot as the change has occurred. The market has gotten significantly worse for car buyers. The number of franchise and independent dealers has been reduced by almost half. And yet, those surviving dealers have had an unprecedented run of year-over-year growth since 2008.

But as that growth has slowed in 2016, car buyers find themselves paying more money for used cars than ever before. We know that the typical American household can’t afford the typical new car sold in America, but we may soon be approaching a day when that same household can’t afford the typical used car, either. In fact, according to NADA Data, the average used car transaction price in 2016 will crest $20,000 for the first time in history, and will be 59.1 percent of the average new car transaction price of $33,903.

What does all of this mean to you? That buying used may not be the smartest financial choice you can make. In fact, it might not be very smart at all.

(Read More…)

By on February 4, 2012

Car prices are at an all-time high. Cash rebates and incentives are evaporating in front of our eyes. U.S. consumers are paying 11 percent more on average for a new vehicle, to a record $28,341, up from $25,505 on average in 2008. Yesterday, J.D. Power presented the inflationary news to car dealers assembled in Las Vegas for the National Automobile Dealers Association convention.

Dealers applauded. (Read More…)

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