Latest news with #AutoPacific
Auto Blog
02-08-2025
- Automotive
- Auto Blog
New Car Shoppers Are Sacrificing These Features to Save Money
This one's for those who want to know the nitty-gritty of what makes the 2026 Cadillac Lyriq-V worth the extra $12k-$20k. Most buyers will sacrifice more than you might expect Automakers continue to add flashy and expensive features to their new vehicles. The expectation is that panoramic glass roofs, reconfigurable digital gauge clusters, or head-up displays are in high demand among consumers. However, AutoPacific's 'Future Attribute Demand Study,' which surveyed more than 14,000 current new vehicle buyers about their interest in more than 160 options, suggests that actual demand for flashy features is quite low, particularly among those shopping in the $25,000-$35,000 segment. For these buyers, simplicity reigns supreme, and the allure of the latest technology doesn't attract them if it affects their monthly payment. 2025 Nissan Altima — Source: Steven Paul 'Front wheel drive, base stereos, cloth seats with various manual adjustment, and analog gauges are in for these more frugal shoppers,' says Robby DeGraff, AutoPacific's manager of product and consumer insights. 'So, the array of standard equipment found on entry- and mid-level trims of today's popular vehicles within the $25,000-to-$35,000 price range may need to be reexamined as consumers tighten their belts in the face of economic uncertainty.' What some, but not all, buyers want The commonly-found features that matter most to those in the under-$35,000 segment are wireless Apple CarPlay and Android Auto, selectable drive modes, a heated steering wheel, and a power front passenger seat. Yet these are must-haves among a mere 26% of buyers in this segment. That's a little more than one-in-four buyers, not exactly overwhelming demand. Other features fare even worse. Consider all-wheel drive, which is demanded by 24% of buyers, a memory driver's seat by 23% or welcome lighting at 22%. Then there's a reconfigurable digital gauge cluster at 21%, a panoramic glass roof at 20%, a head-up display and premium audio at 15%, and leather upholstery at 11% – or slightly more than one-in–ten. 2025 Toyota Camry XSE — Source: Toyota If you think such items are more important to buyers with fatter wallets, guess again. The numbers are not significantly higher, although their priorities differ. According to the AutoPacific study, the feature most desired by wealthier buyers is selectable drive modes, which are demanded by 33% of buyers, or just one in three. Wireless Apple CarPlay and Android Auto, a power front passenger seat, heated steering wheel, and a premium audio system tie at 31%, followed by all-wheel drive at 29%, and welcome lighting at 28%. A memory driver's seat, reconfigurable digital gauge cluster, and a panoramic glass roof come next at 27% each, followed by a head-up display at 23%, premium audio at 21%, and leather upholstery at 18%. 2026 Cadillac LYRIQ-V — Source: Cadillac What do $25k-$35k vehicle buyers want? According to AutoPacific, buyers in the $ 25,000-$35,000 range are more open to sedans powered by a conventional internal combustion engine, around 20% want their next vehicle to be a hybrid, and only 5% want it to be a battery-electric vehicle. Keep in mind that these buyers are trading in vehicles that are more than 11 years old, with about a third considering a new vehicle for the first time. Given that, it's a little surprise that they prefer an instrument panel with an analog gauge cluster and conventional controls, alongside a modest center touchscreen without embedded navigation. 2024 Mazda CX-90 — Source: Mazda Yet they still want wireless smartphone charging pads, heated/ventilated front seats, a 110-volt outlet, driver profile settings, and active safety features. With a median household income of $50,000, these buyers are suburban, drive less than 20 miles daily, and have no children living at home. Approximately 31% are Millennials, 29% are Baby Boomers, and 57% are female. Ford Mustang Mach-E — Source: Ford Final thoughts New vehicle prices are rising far faster than the rate of inflation, as automakers continue to ignore new vehicle affordability. Consider that the average new car price in June 2025 was $48,907 according to Cox Automotive. Eleven years earlier, it was $32,556, an increase of more than 50% at a time when inflation rose 35%, according to the Federal Reserve. AutoPacific's 'Future Attribute Demand Study' shows that entry-level buyers are being ignored by an industry too infatuated with pleasing its most profitable customers at the expense of the rest. Source: Adobe Stock Photo 'It's good for models in that price range to offer some fancier, lower-demand features, but those should be optional and limited to higher trim levels, which can also serve to capture customers of bigger and nicely-equipped models who may be downsizing into more affordable segments as they tighten their belts,' says Ed Kim, AutoPacific's president and chief analyst. About the Author Larry Printz View Profile
Miami Herald
30-07-2025
- Automotive
- Miami Herald
Recent Survey Shows Car Buyers Want Simplicity To Save Money
New cars are more expensive than ever, but it's hard to nail down one reason as the driving force behind that trend. New technologies and features are a significant factor behind price increases, as it's ridiculously expensive to pack screens, cameras, and sensors into a car. A recent survey from AutoPacific found that buyers shopping for budget-friendly cars would rather have a more straightforward ride, reporting that they would gladly do without some of the features that come with more expensive vehicle purchases. AutoPacific surveyed more than 14,000 potential new car buyers in the sub-$35,000 price range, asking about their interest in new features like Apple CarPlay and Android Auto, leather seats, and sunroofs. While many said they'd like to have smartphone connectivity and other features, they were far less interested in tech like head-up displays, configurable gauge clusters, and fancy lighting animations. AutoPacific's manager of product and consumer insights, Robby DeGraff, said, "Front-wheel drive, base stereos, cloth seats with various manual adjustments, and analog gauges are 'in.' So the array of standard equipment found on entry- and mid-level trims of todays popular vehicles within the $25,000 to $35,000 price range may need to be reexamined as consumers tighten their belts in the face of economic uncertainty." Budget buyers may care less about some features, but they agree with their more affluent counterparts in some areas. Everyone cares about safety equipment, like parking sensors and automatic emergency braking, though the budget buyers were less interested in semi-autonomous driving features and adaptive cruise control. The number of new cars in the sub-$35,000 price range has dwindled, but there are still several great choices available. Nissan still sells the Versa for under $20,000 to start, and it's hard to spec a Toyota Corolla or Honda Civic past the $30,000 mark. Related: Why Cheap New Cars Are Disappearing in 2025 Copyright 2025 The Arena Group, Inc. All Rights Reserved.
The Drive
27-07-2025
- Automotive
- The Drive
Hands-Free Driving Aids Top List of Most Wanted New Car Features: Study
The latest car news, reviews, and features. Automakers continue to go all-in on advanced driver assistance systems. The question is: Do people actually want them? A recent study from research firm AutoPacific confirms that, yup, features like hands-off highway driving aids are the most desired among surveyed folks who intend to buy a new vehicle soon. Those systems, which include GM's Super Cruise and Ford's BlueCruise, are on the 'want' list for 43% of people who plan to buy a vehicle in the next three years. In 2024, automated driving features ranked far lower, with just over 20% of those surveyed seeking out hands-free driving. And just to be clear, these people specifically want systems where driver attention is still required; totally autonomous cars are further down the list, with a still-impressive 38% of people wanting a car with no steering wheel. AutoPacific This jump in popularity correlates with an increase in trust of automated driving features. Sixty percent of people said they would feel comfortable with their cars handling certain driving tasks, like staying in their lane or parallel parking, while 56% trust their cars' safety systems to prevent accidents on their own. Notably, 48% say they want their vehicle to drive itself so they can do something else, like read, or watch movies, or knit, or scroll some more. Now, this is where I interject to say that AutoPacific is not just surveying enthusiasts. People who actually enjoy driving are a lot less likely to say they'd rather trawl Pinterest than handle the steering wheel. But this seems to be reflective of the greater general population. Caleb Jacobs Having tested Ford's BlueCruise 1.4 suite in the 2025 Expedition just a few months back, I have to say that it was genuinely impressive. It made the drive between Louisville, Kentucky, and Columbus, Indiana, a breeze as it handled nearly everything on its own. Lane changes were hands-free, it didn't wander around in its lane, and aside from yelling at me to pay attention to the road when I was locked in on the highway ahead, it was largely glitch-free. I can understand why people want it, for sure. It makes the mundane daily drive a lot less repetitive. I just don't trust people to use it responsibly, as drivers have been trying to game these systems—and, in some cases, succeeding—since they first hit the road. Fortunately, Ford and GM's systems seem pretty foolproof in that regard. Got a tip or question for the author? Contact them directly: caleb@
Daily Mail
05-07-2025
- Automotive
- Daily Mail
Fury as popular tax break set to end in the fall: 'Hypocritical and short-sighted'
A well-used tax credit is being put out to pasture. Car analysts are not happy. The Republican sweeping Big, Beautiful Bill will eliminate the $7,500 tax credit for new EV and plug-in hybrid purchases — a key incentive created under the Inflation Reduction Act. A $4,000 credit for buyers of used electric vehicles will also get the axe on September 30. Critics of the credit argue it reins in spending on programs that haven't lived up to expectations. 'Following the passage of the Inflation Reduction Act in 2022, there have been significant concerns about the cost of these tax credits,' Bernie Moreno, a Republican Senator from Ohio and former car dealership manager, wrote in an open letter. But supporters of the tax break see a missed opportunity. 'It's almost hilariously hypocritical and short-sighted — but that's the Trump Administration,' Robby DeGraff, the manager of consumer insights at AutoPacific, told 'It's really all a shame, especially from a paranoid administration so hellbent on ensuring "consumer choice."' Buyers can still qualify for credits on eligible vehicles purchased before September 30. Republicans have long criticized the EV credits, arguing the incentives were out of step with consumer demand and too generous to an industry they see as premature. EV adoption has steadily grown since the program launched. But the vehicles still make up just around 10 percent of the overall new car market — falling short of the rapid transition lawmakers envisioned. The credit was designed with two main goals in mind: supercharge domestic manufacturing and encourage Americans to transition to lower-emission vehicles. DeGraff outlined three key ways he believes the removal of the credit under Trump's bill will backfire. First, he said the bill will push car prices even higher. In June, it cost around $49,000 to drive a new set of wheels off a dealership lot. That pushed the average monthly payment above $700. Right now, Americans are paying a premium for electric vehicles, in part due to the costs of ramping up domestic production. The now-expiring credit helped offset those investment costs for consumers, but only for vehicles built largely in the US. Second, DeGraf said the tax bill will crush American manufacturing. 'Slower sales and demand will lead to production pauses at plants and consequently layoffs,' he said. 'Perhaps the comical thing to consider, is that many of these states that do build EVs and have received massive investments and had automakers employ massive amounts of workers are Republican states.' Finally, DeGraff said it makes it harder for US automakers to compete globally. Major Chinese automakers have received huge subsidies for their vehicles. Companies like BYD, Nio, XPeng, and Zeekr have built competitive, low cost vehicles in highly automated factories. The cars typically have higher build quality, electric range, and technology, all for a cheaper price. And they're coming to global markets, where American manufacturers want to be competitive. China and EU officials are currently negotiating how to bring the cheap EVs to the European market without crushing the continent's local carmakers. American delegates are reportedly not involved in that negotiation. Detroit's big three carmakers likely aren't having their voices heard in the market, which is the largest in the world. Meanwhile, some of America's biggest carmaking employers — including GM, Ford, Stellantis, Toyota, Nissan, Honda, and their parts suppliers — are already under pressure. Carmakers are paying 25 percent tariffs on some of their vehicles and parts shipped to the US.
Newsweek
27-06-2025
- Automotive
- Newsweek
Which Automaker Startups Will Be a Success? Analysts Weigh In
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. The road to automaker profitability is littered with names that are both familiar and long since forgotten. Even in today's business climate, where vast amounts of data are available at the fingertips, creating a car that people are willing to pay for is a moonshot. Henrik Fisker tried twice. VinFast has already pulled out of the U.S. Peugeot promised to come to America and is now firmly against it. "Ultimately, surviving in the automotive industry isn't just about vision—it's about endurance. The startups that win will be the ones that don't just launch well, but scale wisely, deliver consistently, and adapt faster than the giants they're trying to disrupt," Paul Waatti, director of industry analysis at AutoPacific, told Newsweek. Newsweek asked some of the world's top auto industry analysts to weigh in on the potential future of six companies, all of which fit into the category of startup, even if they have been around for a while: Rivian, Lucid Motors, Tesla, Slate, Dacora and Scout Motors. Rivian Rivian is the standout in this group, turning a profit where others have struggled. In the fourth quarter of 2024, the automaker had a gross profit of $170 million. In the first quarter of 2025, a gross profit of $206 million was achieved. Rivian R3 front three quarter view. The Rivian R3 will be smaller and less expensive than the R2. Rivian R3 front three quarter view. The Rivian R3 will be smaller and less expensive than the R2. Rivian "Rivian, despite still experiencing financial growing pains, is on a good path. The recent mid-cycle actions on the R1 models have resulted in truly world class software that actually rivals Chinese efforts," Ed Kim, president and chief analyst at AutoPacific, told Newsweek. Rivian's future was more securely put in place when its joint venture with Volkswagen was announced. VW invested $5.8 billion in Rivian VW Group Technology, LLC to develop an electric vehicle platform and software based on current and future Rivian technologies. "With Amazon as a flagship customer, and a Volkswagen partnership, Rivian is aggressively scaling its EV footprint across delivery fleets and consumer vehicles. But this transition year brings production costs and margin pressure into focus, as competition from legacy automakers intensifies. If successful, Rivian's strategic partnerships and expanding charger network could secure its place as a dominant player — but sustainable profitability remains the most important objective," Tony Salerno, vice president at J.D. Power, told Newsweek. The next major hurdle Rivian looks to clear is the production of its R2 SUV, which is smaller than the established R1 model. With a lower price point and larger market appeal, it could be the home run that the company needs to find even firmer footing. A woman walks on the sidewalk at the Rivian Charging Outpost in Joshua Tree, California. A woman walks on the sidewalk at the Rivian Charging Outpost in Joshua Tree, California. Rivian "Now, Rivian faces its biggest make-or-break moment yet, the introduction of its R2 electric SUV. The R2 will be Rivian's first volume model with pricing expected to start below $50,000, and it's conceived to take Rivian into the mainstream. Plenty of consumers seem to be excited as it will offer all the style and capability of the R1S with a smaller and more manageable size and price tag. The success or failure of R2 will largely determine Rivian's fortunes going forward," Kim said. What Rivian's CEO RJ Scaringe told Newsweek: "As we head into the second half of 2025, there's tremendous amount of momentum as we work towards the launch of R2. I couldn't be more excited for what's ahead, and can't wait for R2 deliveries to start next year." Lucid Motors Lucid Motors started its work on its first car in 2014 and debuted the Lucid Air sedan in 2016. Production of the model commenced in 2021. A year prior, the company showed off an SUV concept that would evolve into the Gravity production model. Deliveries of Gravity began late last year. "Launching a luxury car might be seen as misreading the market, but the Air's lower profile and lighter weight compared to an SUV allowed them to hit that magic 500-mile mark for EV range, which established their technological capabilities. Early reviews on the Gravity are positive, but, like Rivian, they are waiting for their 'Model 3' moment to scale up with their new affordable SUV (and face the same challenges as Rivian in that regard). Their chances of survival are not quite as strong as Rivian but still good," Adam Bernard, founder and principal at AutoPerspectives, told Newsweek. 2025 Lucid Motors Gravity 2025 Lucid Motors Gravity Courtesy of Lucid Motors "Backed by the deep pockets of Saudi Arabia's sovereign wealth fund, Lucid has built some of the most technically advanced luxury EVs on the road. Yet it continues to struggle with sales and profitability targets, putting pressure on execution. The Gravity SUV may offer a much-needed volume boost, but the company's success hinges on continued foreign backing and its ability to navigate current EV market headwinds," Salerno added. The California-based automaker is looking ahead to its next model, Earth, a smaller crossover. "As it prepares to launch its more attainable sub-$50K electric crossover by the end of this year, it - like Rivian - aims to enter the mainstream auto market and utilize its signature Lucid strengths detailed above to make its mark among regular, non-luxury customers," Kim said. Lucid Motors did not reply to a request for comment from Newsweek. Tesla Tesla was early to the electric vehicles (EVs) game and continues to make models that buyers want. The company has struggled as of late between political controversies surrounding the business and its leaders, and the Cybertruck not reaching its perceived potential with customers. But, with its Cybercab robotaxi fleet aimed to come to fruition soon, there's fresh meat on the horizon. "Tesla remains the undisputed heavyweight of the EV industry, with unmatched scale, brand awareness, and a vertically integrated model few can replicate. However, regulatory pressures, intensifying competition, political climate, and a maturing EV market are beginning to challenge its long-held dominance. That being said, Elon is a fierce competitor that should not be underestimated," Salerno said. A rendering of a Tesla Cybercab robotaxi. A rendering of a Tesla Cybercab robotaxi. Tesla Is Tesla a startup? Is it one of America's new legacy automakers (a grouping that usually includes General Motors, Ford Motor Company and Stellantis)? At two decades old, it fits somewhere in between. If it's going to stick around, it needs to weather the current storm and continue to evolve. "This company is no longer a startup. They have plants in three countries and sold more than 1.8 million units last year—twice Subaru's global sales and more than Mazda," Stephanie Brinley, associate director of AutoIntelligence at S&P Global Mobility, told Newsweek. "Tesla's opportunity is still in its EV accomplishments, even with consumer concerns over the CEO's affiliation with U.S. politics, and his other controversial statements. Tesla's sales challenges in the past year or so are more deeply rooted in the impact of inconsistent pricing strategies and aging models than the headlines. "The updates to Model 3 and Y are not enough to get loyal buyers to upgrade or buy for a third time. For new EV buyers, there is much more competition, and most of it looks fresh compared with the older Tesla designs. Delayed products and minimal updates for existing models are fundamental car company problems, and Tesla has them. "The Cybertruck has been polarizing and not met the sales targets Tesla wanted. Even if it turns out to be a miss, a single product miss isn't enough to end most car companies, and it won't end this one," she said. Tesla did not reply to a request for comment from Newsweek. Slate Slate made big headlines this year when it first debuted a peek at its upcoming model in the pages of Newsweek, then again a few weeks later at its formal brand and company launch event. The company plans an American-made truck that converts into a number of other body-style configurations, including an SUV. Slate intends to begin selling the vehicle by the end of next year. Renderings of Slate vehicles modified for perspective consumers. Renderings of Slate vehicles modified for perspective consumers. Slate Kim calls the company's offering, "a true countercultural proposition." He also said: "Many car enthusiasts like to wax poetic about bare bones vehicles of the past, but the reality is that most of today's new vehicle shoppers want amenities. Are there enough people who want a bare-bones DIY electric trucklet to the tune of 150,000 units a year? Slate thinks so and is betting its future on it." Salerno warns that Slate, "...faces some vulnerability if one of the established automakers like Ford shifts the playing field." Brinley sees vulnerabilities elsewhere as well saying, "The Slate also underscores that to get something affordable or inexpensive means giving up features and technology – though there are some buyers who will appreciate that it isn't connected. A two-door pickup formula is easier to engineer and cheaper to build, but U.S. consumers shun two-door pickup trucks for almost anything but work trucks. The two-door configuration will limit sales. Slate is intriguing and will be a great formula for some buyers. But will it be enough buyers for a sustainable business? We'll see." What Slate told Newsweek: "Slate is revolutionizing the build process by simplifying it, allowing us to get to high quality volume production and pass the savings on to our customers. Having a reliable, affordable vehicle may be a life-changing opportunity for those who thought it was impossible." Dacora Dacora is hoping to break into the super high-end market with an electric vehicle that is designed and engineered in the U.S. The company is just beginning to talk about its business and take reservations. "Dacora is still largely unproven publicly, but like any stealth startup, it will need to prove that its idea translates not just to a cool prototype but to a business with staying power. As with many mobility upstarts, the runway is short, and expectations are high," Waatti said. Bernard is equally skeptical: "With Bentley and Ferrari boasting about the profit-generating capabilities of their bespoke services, Dacora is going after a relatively small but valid niche (where Rolls-Royce and Cadillac's Celestiq already play). However, information on the business plan is difficult (or impossible) to find. The website is sparsely populated; buyers interested in dropping $50,000 will have to dig through LinkedIn to find who will be spending their money. They will soon discover many functions aren't represented (yet) and there's not a lot of automotive experience in the existing team. Right now, this seems like a fascinating idea that hasn't been fleshed out enough to know if it will work." Once up and producing, scaling production is key to Dacora's success, even with few orders to execute per year, Salerno said. "Dacora is entering the EV market with a uniquely American, ultra-luxury offering — handcrafted and priced north of $300,000. Its exclusive, retro-inspired design targets an elite clientele, but scaling sustainable profitable production with heavyweight rivals like Rolls-Royce and Bentley presents obstacles." What Dacora told Newsweek: "Dacora truly stands apart. We've fused the rich culture and heritage of ultra-luxury automotive with a powerhouse team — deep technical talent alongside seasoned industry veterans who know what it takes to scale and succeed," said Kristie D'Ambrosio-Correll, co-founder and CEO of Dacora Motors. "The ultra-luxury segment is vastly underserved and offers exceptional unit economics. Our coachbuilding approach reduces upfront capital needs and allows us to rewrite the traditional EV go-to-market playbook. And it's working — pre-orders already represent nearly $40 million in first-year revenue." Scout Motors Last year, Scout publicly revealed plans to bring a Terra truck and Traveler SUV to market in two years. Building on the roots of decades of branding from the mid-1900s, Scout Motors, though a thoroughly American company in terms of product and engineering, is financed under the Volkswagen Group umbrella. The company plans a direct-to-consumer sales model but has been challenged in court by new car dealers over the legality of those plans, something that Salerno notes adds complications to its launch. In the pros column, Kim lists the company's plug-in hybrid powertrain variant as being on track to appeal to customers in ways a fully-electric vehicle does not. And, Scout's manufacturing plant near Columbia, South Carolina, is poised to benefit Volkswagen Group brands in the future as the company looks to regionalize production, he explained. "Having VW support will be critical, in terms of funding but also in terms of expertise and talent. Scout has drawn heavily from Volkswagen Group ranks and been able to poach respected industry veterans from other companies. Scout's plans to use the Rivian architecture via a Rivian-VW joint venture is an illustration of the importance of having a strong parent," Brinley said. "At first blush and on paper, the Scout products look terrific. They are attractive, have plenty of technology delivered in a more familiar setting, and the mix of range-extended electric and battery electric powertrains provide choice." Bernard sees parallels between the history of General Motors and today's Volkswagen Group business plan. "In many ways, Scout is intending to do for SUVs and VW Group what Saturn did for small cars and General Motors; for VW Group, it's a new brand, a new architecture, a new plant, and a new way of selling vehicles. America's continued interest in SUVs may offset lower-than-expected demand for the pickup, and the range extender (which uses a configuration that no other automaker has yet tried) should address concerns over EV demand," Bernard said. There are additional concerns. "Expectations are high, and success hinges on the flawless execution of both product and manufacturing in the U.S.—something VW hasn't always nailed in the past," Waatti said. What Scout Motors told Newsweek: "A storied legacy and a running start combine to create an enduring brand and business built for success. Scout Motors meets the American market by entering the core of the U.S. automotive segments – rugged SUVs and full-size pickup trucks. The Scout Traveler SUV and Terra truck will address roughly 40 percent of the U.S. auto market and will be built in America in a way that combines American entrepreneurship with the backing, scale, and manufacturing know-how of the Volkswagen Group. This enables Scout Motors to deliver upon a competitive cost base and move with speed. Scout Motors meets the American moment by supporting the revitalization of American manufacturing through its multibillion-dollar investment into its Production Center in Blythewood, South Carolina. Spanning 1,100 acres and creating more than 4,000 good-paying jobs, Scout Motors' Production Center will have the capacity to build more than 200,000 Scout vehicles per year when fully ramped up. Construction is on track, and factory hiring will start soon. Across categories, the most successful American brands and products have always had a bit of magic. Scout Motors combines highly credible vehicles with a beloved brand and a passionate community that has kept the scout spirit alive for decades. By combining its product heritage with modern ingenuity while leaning in and listening to the existing Scout community and fans, Scout Motors is unlike any other new automotive entrant. Consumer response to the reveal of the Scout Traveler and Terra is extremely positive. The Harvester range-extender option, connection-focused features like the bench seat, and a return to tactility and utility are resonating with consumers. That enthusiasm is reflected in reservation counts. There's plenty of road ahead as Scout Motors works to bring these incredible vehicles to life and invest in communities and people."
