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☆ Federal Reserve Meeting Fed Leaves Rates Unchanged: Live Updates
▼ + stars: | 2023-06-14 | by ( Jeanna Smialek | Joe Rennison | ) www.nytimes.com time to read: +7 min

Credit card rates are closely linked to the Federal Reserve’s actions, which means consumers have seen those rates rise over the past year. After raising interest rates 10 times over the past 15 months, the Federal Reserve is expected to take a break on Wednesday and hold rates steady. The Federal Reserve has already raised its benchmark rate, the federal funds rate, to a range of 5 to 5.25 percent to rein in inflation, which is showing signs of slowing. Used-car rates were even higher: The average loan carried a 11 percent rate in May, up from 8.2 percent a year earlier. Home-equity lines of credit and adjustable-rate mortgages — which each carry variable interest rates — generally rise within two billing cycles after a change in the Fed’s rates.

Persons: ”, Anna N’Jie, Bankrate.com, Matt Schulz, Jonathan Smoke, Edmunds.com, that’s, —, Freddie Mac, Ken Tumin, DepositAccounts.com Organizations: Federal Reserve, Fed, Re, LendingTree, Cox Automotive, Treasury, Savings Vehicles Savers, Consumers, DepositAccounts.com Locations: San Francisco .

☆ Fed Expected to Pause Rate Increases: Live Updates
▼ + stars: | 2023-06-14 | by ( Jeanna Smialek | Joe Rennison | ) www.nytimes.com time to read: +7 min

The Federal Reserve has already raised its benchmark rate, the federal funds rate, to a range of 5 to 5.25 percent to rein in inflation, which is showing signs of slowing. The average credit card rate was 20.44 percent as of June 3, according to Bankrate.com, up from around 16 percent in March last year, when the Fed began its series of rate increases. The average rate on new car loans was 7.1 percent in May, according to Edmunds.com, up from 5.1 percent last year. Used-car rates were even higher: The average loan carried a 11 percent rate in May, up from 8.2 percent a year earlier. The average rate for an identical loan was 5.23 percent the same week in 2022.

☆ Tesla stock charges upwards on deal with GM
▼ + stars: | 2023-06-09 | by ( Peter Valdes-Dapena | ) edition.cnn.com time to read: +3 min

Both Ford and GM EV drivers will, for now, need special adapters to allow their vehicles to use Tesla chargers. Tesla’s charging system had been proprietary and only usable by Teslas – although Teslas could use CCS chargers with an adapter. But CEO Elon Musk announced in late 2022 that he was inviting other automakers and charging companies to use Tesla’s charging system and design standards. Tesla’s NACS chargers outnumber CCS chargers in the United States by a factor of two to one, according to Tesla. Other automakers, such as KIa, Hyundai, BMW, Mercedes and Volkswagen, still use the CCS charging standard and have not announced any plans to change.

Persons: CNN — Tesla, ”, Gary Silberg, –, Elon Musk, Mary Barra, Sam Abuelsamid, Tesla, Justin Sullivan, Guidehouse’s, KPMG’s Silberg, Abuelsamid, Musk, GM’s Organizations: CNN, General Motors, Ford, GM EV, Tesla, KPMG, GM EVs, Guidehouse, CCS, GM, GM’s Chevrolet, Cox Automotive, KIa, Hyundai, BMW, Mercedes, Volkswagen Locations: United States, CALIFORNIA, San Rafael , California, North America

☆ Used car prices are falling as sales soften amid high interest rates
▼ + stars: | 2023-06-07 | by ( Michael Wayland | ) www.cnbc.com time to read: +2 min

DETROIT – Wholesale used vehicle prices reached their lowest level of the year in May, as sales fell amid high interest rates and inflated retail prices. The declines in sales and wholesale prices signal the used vehicle market is weakening, according to Cox. Used vehicle prices have increasingly become a barometer for inflation since early last year when the Biden administration blamed the market for rising inflation rates. The costs and scarcity of inventory led consumers to the used vehicle market, boosting those prices as well. Continued declines could help bring used vehicle pricing down for consumers, since retail prices traditionally follow changes in wholesale prices.

Persons: Chris Frey, Cox, That's, Biden Organizations: DETROIT –, Cox Automotive, U.S Locations: Glendale , California, DETROIT

☆ How inflation and higher interest rates have reshaped car buying for many Americans
▼ + stars: | 2023-06-01 | by ( Michael Wayland | ) www.cnbc.com time to read: +1 min

The Federal Reserve's battle to taper inflation by ratcheting up interest rates is limiting who can afford to purchase a new or used vehicle. The rate hikes have many Americans lowering their buying expectations, opting for used vehicles over new, or fixing their current car or truck instead of purchasing a replacement. "We continue to see subprime buyers squeezed out of the auto market by the Fed repeatedly moving rates higher. At various points in 2018, subprime buyers made up more than 14% of new vehicle sales, while deep subprime buyers made up close to 10% of the market, according to Cox. This year, subprime buyers account for roughly 6% of new vehicle sales and deep subprime account for less than 2%, Cox reports.

Persons: Cox, Jonathan Smoke Organizations: Subaru, Cox Automotive, Fed Locations: Colma , California

☆ Elon Musk's quest for an irresistible price could spell trouble for Tesla and its stock
▼ + stars: | 2023-05-21 | by ( Brian Evans | ) www.cnbc.com time to read: +11 min

Its goal has been to coax consumers to make the leap to its brand with the lower prices. Finding an 'irresistible' price Tesla's price cuts are an effort to take advantage of that growing market. "We have written extensively on the drag EVs have on margins for legacy [original equipment manufacturers] and the impact of EV price deflation. She added that the price cuts are an effort for Tesla to retain market dominance and stave off competition from big competitors like Ford. Longer term, Tesla's price fluctuations could do more harm than good if they end up turning consumers off.

☆ Why Is Inflation So Stubborn? Cars Are Part of the Answer.
▼ + stars: | 2023-05-20 | by ( Lydia Depillis | Jeanna Smialek | ) www.nytimes.com time to read: +1 min

The job market has remained strong, especially for in-person jobs in fields like hospitality and health care, so more people have workplaces to get to. And many people in between, who might switch cars every few years, are waiting for prices to fall. Wholesale car prices have begun to fall, and carmakers are offering more incentives. Prices have come down in recent months for electric cars — the fastest-growing segment of new car sales, though a small portion of the overall market. Adam Jonas, an auto industry analyst with Morgan Stanley, said that over the short to medium term, more inventory was the only answer.

☆ Electric Vans, Delayed by Production Problems, Find Eager Buyers
▼ + stars: | 2023-05-16 | by ( Neal E. Boudette | ) www.nytimes.com time to read: +1 min

A few minutes of number crunching showed he was spending about $110 to $140 a week on fuel for each of the four older, diesel Transits in his fleet. Then he worked out how much electricity he was using to charge the electric model to drive the same distance — about 300 miles a week. It makes it really, really cheap to operate.”In the auto industry’s transition to electric vehicles, passenger vehicles have led the way. Tesla remains the largest seller by far, while General Motors, Ford Motor, Hyundai, Volkswagen and others are selling multiple electric models. sales total in the U.S. market to top one million this year for the first time.

☆ The average car is now over 12 years old — that's a problem if you're in the market for a used vehicle
▼ + stars: | 2023-05-15 | by ( Alexa St. John | ) www.businessinsider.com time to read: +3 min

That means your service waits could get longer — and good, used cars will be hard to find. The average age of a vehicle on the road hit 12-and-a-half years, according to a recent analysis from S&P Global Mobility. How does the average car age impact consumers? What this means for the used car marketBuyers in the market for a used vehicle are also in trouble. The average used car was listed for $26,799 in April, according to Cox Automotive, stabilizing a bit but still substantially up from pre-pandemic.

☆ Automakers and dealers are playing a game of chicken — and customers could be the winners
▼ + stars: | 2023-05-14 | by ( Nora Naughton | Alexa St. John | ) www.businessinsider.com time to read: +4 min

Automakers and dealers have kept prices high and inventory low for years. Automakers and dealers are playing a game of chicken over how much a car should cost right now — and customers might come out the winners. Higher interest rates make everything more painfulMeanwhile, dealers are spending more to keep cars sitting. To make matters worse for dealers: Without discounts to ease rising interest rates, more customers are delaying their purchases and hoping to wait out the interest rates. If and when car companies start spending more on incentives, they are likely to target interest rates, Caldwell said.

☆ Automakers find a tax credit loophole to increase EV leasing and boost sales
▼ + stars: | 2023-05-13 | by ( Michael Wayland | ) www.cnbc.com time to read: +6 min

Buying a used Ioniq, which is produced in South Korea and Indonesia, wouldn't earn him $7,500 off through a federal tax credit. "I ran the numbers — what it would be without the leasing credit and with the leasing credit — and that kind of put me over the top and that was the main thing of why I went in that direction," he said. For a $50,000 EV and a 36-month lease, Chesbrough estimates the full $7,500 tax credit equates to $222 in monthly savings for a consumer. "It also allows them to level the playing field against competitors who get the full tax credit when purchasing." I wouldn't call it leveling the playing field," Watson said of leasing qualifying for the $7,500 tax credit.

☆ Used vehicle prices fell last month for the first time in 2023
▼ + stars: | 2023-05-05 | by ( Michael Wayland | ) www.cnbc.com time to read: +2 min

DETROIT – Wholesale used vehicle prices declined last month for the first time this year, as automakers increase production of new cars and trucks. The costs and scarcity of inventory led consumers to buy used vehicles, increasing those prices as well. Further declines could help bring used vehicle pricing down for consumers, since retail prices traditionally follow changes in wholesale prices. Used vehicle prices have increasingly become a point of interest for investors and the Biden administration as a barometer for easing inflation. The administration early last year blamed much of the rising inflation rates in the country on the used vehicle market.

"My belief is that we don't get inflation down to 2% without a recession," said Greg McBride, chief financial analyst at Bankrate. As the economy fluctuates, experts say there are several key risk areas that consumers may want to keep an eye on. That still leaves about 1.6 open jobs to every available worker, which is "very good," according to Andy Challenger, senior vice president at outplacement firm Challenger, Gray & Christmas. Pricey car loan 'quickly becomes untenable'Auto loan delinquencies are already rising, particularly for borrowers with weaker credit profiles, McBride noted. In 2022, consumers paid $133.1 billion in credit card interest and fees, a 23.1% increase from the estimated $108.1 billion they paid in 2021.

☆ Ford and GM can afford to put on a brave face
▼ + stars: | 2023-05-02 | by ( Jonathan Guilford | ) www.reuters.com time to read: +4 min

Automakers General Motors(GM.N) and Ford Motor(F.N) reported operating profit well above Wall Street’s expectations in the first quarter. Their battery-powered makeovers carry risks, but 3.6 million missing car sales thanks to Covid-era shortages means their gas-guzzler cash cows can put on a brave face, thanks to plenty of unfulfilled demand. Ford and GM reported total operating profit 43% and 20% above analyst expectations this quarter, respectively, according to Refinitiv. Reuters GraphicsThis price ratchet added billions to operating profit in recent years. GM increased its expectations for full-year operating profit by $500 million, to a range of $11 billion to $13 billion.

☆ Why Tesla keeps making the Model S and X even as sales dwindle
▼ + stars: | 2023-05-02 | by ( Peter Valdes-Dapena | ) edition.cnn.com time to read: +5 min

Production ramped up slowly, but by 2017, Tesla was selling more than 100,000 a year of the Model S and its SUV sibling, the Model X. Similarly, pricing for the Model X SUV starts at about $98,000 but the smaller Model Y starts at just $47,000. Still, much like the S-class for Mercedes-Benz, the Model S remains Tesla’s flagship model, representing the brand. In fact, within its competitive class, the Tesla Model S and X are good sellers. By this point in their long lives, the Tesla Model S and X have become a stream of fairly steady profits, said Cox.

☆ Why GM is killing the Chevy Bolt — America's cheapest EV — amid record sales
▼ + stars: | 2023-04-29 | by ( Michael Wayland | ) www.cnbc.com time to read: +8 min

In this article GM Follow your favorite stocks CREATE FREE ACCOUNTA Chevrolet Bolt EUV on display at the New York Auto Show, April 13, 2022. Scott Mlyn | CNBCDETROIT — After years of lackluster performance and a fire-provoked recall, the all-electric Chevrolet Bolt EV was finally gaining traction for General Motors . The Bolt EV would start at $26,595, followed by the Bolt EUV at $28,195. A 2019 Chevrolet Bolt EV caught fire at a home in Cherokee County, Georgia on Sept. 13, 2021, according to the local fire department. Cherokee County Fire DepartmentStill, GM touted the Bolt EV as proof of the concept for its electric-powered future.

☆ Car loan interest rates are reaching record highs and taking longer than ever to pay off
▼ + stars: | 2023-04-15 | by ( Christopher Hickey | ) edition.cnn.com time to read: +4 min

High loan rates mean monthly payments are soaring as well. In March, the average monthly payment for financing a new car hit $730 — the highest on record, according to Edmunds. Most $1,000 per month car loans are taken out by people who choose high-interest, longer-term loans. While buyers who opt for longer loans are paying less money up front, interest rates catch up over time. For instance, a buyer who takes a 70 month loan for a $28,700 used car at the current average loan rate could pay 38% more just in interest.

☆ Cars are selling below sticker price for the first time in years — and it's a sign car buying is finally getting better
▼ + stars: | 2023-04-13 | by ( Alexa St. John | ) www.businessinsider.com time to read: +3 min

March was the first time in months car buyers didn't shell out more than a vehicle was listed for. For comparison, just a year earlier, consumers were paying on average nearly $1,000 more than the sticker price for a new car. Exceptions include Honda and Kia vehicles, which continue to sell for between 3 and 6% over sticker price in the non-luxury market. In addition to the newfound difference in sticker price versus the price actually paid, new car prices have been trending downward overall for months now. March's average price paid is down from February's $48,558, January's $49,388, and December's $49,507.

☆ New vehicle prices fall below sticker price after nearly two years - Kelley Blue Book
▼ + stars: | 2023-04-12 | by ( ) www.reuters.com time to read: +1 min

April 12 (Reuters) - New vehicles' average transaction price fell below the manufacturer's suggested retail price (MSRP) for the first time in 20 months, according to data published by automotive research company Kelley Blue Book. Vehicle prices turned hot after a pandemic-driven supply chain snag and an increased demand for private cars. The average transaction price of a new vehicle in the U.S. declined 1.1% in March to $48,008 from February's $48,558. However, March prices rose 3.8% compared to a year earlier. Top global automakers, except Toyota Motor Corp (7203.T), reported a rise in first-quarter U.S. sales on improving shipments to dealers as vehicle inventories improve.

☆ New vehicle prices fall below sticker price after nearly two years, Kelley Blue Book data shows
▼ + stars: | 2023-04-12 | by ( ) www.reuters.com time to read: +1 min

April 12 (Reuters) - New vehicles' average transaction price fell below the manufacturer's suggested retail price (MSRP) for the first time in 20 months, according to data published by automotive research company Kelley Blue Book. Vehicle prices turned hot after a pandemic-driven supply chain snag and an increased demand for private cars. The average transaction price of a new vehicle in the U.S. declined 1.1% in March to $48,008 from February's $48,558. Top global automakers, except Toyota Motor Corp (7203.T), reported a rise in first-quarter U.S. sales on improving shipments to dealers as vehicle inventories improve. Reporting by Pratyush Thakur in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

☆ Tesla no longer has the best electric vehicle on the market: Cantor Fitzgerald's Sheppard
▼ + stars: | 2023-04-12 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailTesla no longer has the best electric vehicle on the market: Cantor Fitzgerald's SheppardMichelle Krebs, Cox automotive executive analyst, and Andres Sheppard, Cantor Fitzgerald senior analyst, join 'Power Lunch' to discuss why the U.S. lags the world in the electric vehicle race, if the charging infrastructure can be ramped up to meet demand and more.

☆ EPA reportedly planning to announce significant limits on tailpipe emissions to boost electric vehicle adoption
▼ + stars: | 2023-04-08 | by ( Ashley Capoot | ) www.cnbc.com time to read: +2 min

Under the proposed limits, electric cars will represent between 54% and 60% of new cars sold in the U.S. by 2030, and between 64% to 67% of new cars by 2032, the Times report said. These limits would also surpass President Joe Biden's previous goal to have all-electric cars make up around 50% of cars sold by 2030. Many automakers have already begun to make significant investments in electric vehicles, but forcing such rapid adoption of the technology will present challenges. Large numbers of all-electric cars will require expansive charging infrastructure, for instance. Even if the infrastructure is in place, consumers ultimately have to be willing to adopt electric vehicles, which means companies will also have to be able to maintain reasonable vehicle costs.

☆ Used U.S. electric vehicle sales jump as prices fall -group
▼ + stars: | 2023-04-07 | by ( David Shepardson | ) www.reuters.com time to read: +2 min

WASHINGTON, April 7 (Reuters) - Used electric vehicle sales in the United States rose 32% in the first three months of 2023 as prices fell, data provider Cox Automotive said on Friday. The group said used EV prices were probably cut due to aggressive price reductions by Tesla (TSLA.O) for new vehicles. "As the market leader pushes down prices for new EVs, used-vehicle prices follow suit," Cox said. On Thursday, Tesla cut prices in the United States between 2% and nearly 6%, the fifth such cut this year. Used EV buyers adjusted gross income may not exceed $75,000 for individuals or $150,000 for joint filers.

☆ US first-quarter auto sales set to rise on better inventory
▼ + stars: | 2023-04-03 | by ( ) www.reuters.com time to read: +2 min

But rising interest rates and fears of a recession may play spoilsport in an industry where most vehicle purchases are financed with loans, analysts say. "Consumers are facing credit uncertainty as rapidly rising interest rates have created barriers to entry for even the most qualified buyers," said Jessica Caldwell, executive director of insights at auto research firm Edmunds. The automaker is set to post a 15% rise in first-quarter U.S. sales, while Japanese rival Toyota Motor Corp's (7203.T) sales are likely to fall nearly 10%, when they publish data beginning Monday, according to consultant Cox Automotive. Toyota has continued to struggle with inventory shortages sparked by supply constraints, losing its crown as the top selling U.S. automaker to GM. Trucks and crossover SUVs are expected to account for majority of new retail sales in the quarter, according to automotive data company J.D.

☆ Don't but an EV — lease one instead. Here's why.
▼ + stars: | 2023-03-31 | by ( Alexa St. John | ) www.businessinsider.com time to read: +5 min

Why you might lease instead of ownMany buyers might opt to lease EVs as a way to drive electric but not fully commit to an expensive purchase — especially if they think battery technology will get better. While Teslas have always had a higher purchase rate, EV leasing overall took a tumble in 2022, according to Experian. Car buyers obviously wouldn't get the new EV purchase tax credit with a lease, but there is a sort of loophole. Lucid recently encouraged its customers to consider leasing in order to qualify for the commercial EV credit (for cars that are too expensive or don't otherwise qualify for the purchase credit). It's why companies like Tesla and Ford don't allow customers leasing their EVs to buy the vehicle once its lease contract is up.

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