Latest news with #CFRClassic
Yahoo
22-03-2025
- Automotive
- Yahoo
Tariffs have "a profound effect" on new car prices — but may boost value of your used car
On April 2, a month-long reprieve that U.S. automakers were given from a 25% tariff on Canadian and Mexican imports is set to expire. That means car prices are expected to rise dramatically, given that they'll also be impacted by President Trump's 25% tariff on steel and aluminum, which went into effect last week. The steel and aluminum tariffs alone are 'going to have a profound effect on the prices of vehicles,' Joe Giranda, director of sales and marketing for CFR Classic, told Salon. Combined with the tariff on Mexico and Canada — countries that provide supplies for U.S. automakers — he said he expects prices to rise by as much as $4,000 to $10,000 per vehicle. So, what does this uplifting economic news mean for you? That depends. If you were already planning on buying a car, experts agree: Buy it before Trump's tariffs take effect. 'If buying a new car was in your plans for the first half of the year, and you've been saving for a down payment and have worked the car into your budget, then you should do some car shopping,' Melanie Musson, an auto industry expert with told Salon. Used car prices tend to increase alongside new car prices, Musson said. Experts also encourage consumers to make mechanical repairs to their cars before the tariffs take effect, too, since tariffs will likely raise the price of auto parts. Shoppers who already have a vehicle they can sell or trade in may find themselves in a better situation, Musson said. 'If new cars are more expensive, your used car will likely be worth more, which will help offset the cost of a new car,' she told Salon. But for anybody who wasn't planning on buying a new car, the advice from experts is clear: Don't make financial decisions from a place of fear. 'There's no need to put yourself in a position where you could be financially strapped just because you're afraid that car prices could increase,' Musson said. 'No one knows for sure what will happen, and this is not a time to panic.' Nearly 92% of American households have at least one car, according to Forbes Advisor; a fifth of U.S. households have three. Much of this is because America is built for car ownership: Urban walkable areas account for just 1.2% of the nation's land mass, and the average American now lives 27 miles away from their job — a figure that may be distorted by remote workers living further away from their workplaces than regular commuters. For most American workers, it's not a practical option to live without a car if you can afford one. Unless you're living in a handful of mostly expensive, East Coast cities with robust public transit, you're often left to rely on an underfunded, unreliable and disparately connected patchwork of a transit system, one that might turn a 15-minute commute into one that takes an hour or more. 'North America really is unique in the world in the lack of good public transit,' the author Jake Berman told The Guardian. So if you can afford to own a car, it makes sense that the attitudes around car ownership in the U.S. dictate that you should own a car (and, to please the ever-present Joneses, as nice a car as possible). We don't have an inherent need for cars, though, anymore than we have an inherent need for airplanes. Cars give us access to the thing we need: transportation to and from the places we frequent, as well as the places we want — or need — to get to quickly. Our vehicles, like all of our most expensive purchases, should enhance our lives, or at least add more to our lives than the financial stress removes. And while the benefits of car ownership are often enormous, the downsides — maintenance costs, filling and refilling the tank, the perpetual risk of emergency repairs — can be significant, and likely to intensify in the coming months. Depending on what type of city or town you're in, the question 'Could you live without a car?' might feel impossible under any circumstances (for most Americans, it's probably the latter). But if it feels possible — if, say, you live in an urban area, have a regular routine that'd be bikeable, own multiple cars in your family or are simply considering a lifestyle shift away from certain polluters — it's worth crunching the numbers on at least one alternative to permanent car ownership: day-to-day car rentals. The gig economy's answer to Hertz and Enterprise is a slew of apps that allow individuals to rent out their cars in the way Airbnb allows folks to rent out their houses. The mobile app Turo is perhaps the most popular option (or at least the one I encounter the most). Day rates for most car rental companies tend to range from $50 to $100, while Turo charges around $49 per day to rent a car in Los Angeles. So, for the purposes of this exercise, let's say it costs $80 per day to rent a car, adding a little cushion for gas and unforeseen costs. If you own a car, you're paying for a few things: gas, monthly insurance and potentially a car payment. The average American driver spends around $200 a month on gas and around $220 for full-coverage car insurance. That's $420 a month right there. New car owners with a monthly car note pay an average of $742, per month, while used cars owners have an average monthly payment of $525, according to Experian data. So, let's average out that monthly car note to $600. Combined with gas and insurance, it costs American car owners around $1,000 a month for the gift of said ownership. And at $80 per day, a consumer could afford to rent a car for 12 days a month and still save $40. Of course, that's a crude analysis. And it also feels worth mentioning that my last car payment, for a 2019 Kia Optima, was around $425 a month — well below the figure we used here. Still, at the very least, perhaps this exercise is a nudge to consider what ideas might be calcified in your consumer psyche as hard and fast truths about our spending lives — what you need to have, how you need to live — that may not be serving you, your wallet or your overall well-being. I'll also confess that I write this all as a car owner living in Brooklyn, New York, where it's more of a headache to own a car than to go without (we traded in the Optima for an old SUV). We've lived here for around two years with this car, and I tell myself that when our two senior pups decide to 'move to Santorini,' we'll sell it. But then I think about how frequently I use it to drive to estate sales and was able to haul home a vintage chair for pennies on the dollar, or pop into Manhattan to pick up a designer bookcase some rich, disassociated banker is selling for $20. Never mind the parking tickets I get each month, or the speeding tickets I can't seem to escape as a driver raised on Houston's infamous Interstate 45, or the fact that walks and subway rides leave me feeling far more connected to humanity than a trip in my cramped metal box. Suffice it to say, some engrained consumer habits can fester for years if left unaddressed — long beyond the point that they're serving you.
Yahoo
28-02-2025
- Automotive
- Yahoo
4 Sedans That Will Have Massive Price Drops in Early 2025
If you have been in the market for a sedan, there is some good news on the car-buying horizon: in the first quarter of 2025, prices are expected to fall for a number of sedans from a variety of auto manufacturers. These price drops are expected to be significant to save you money, so you will not want to wait long to buy if you are hoping to get behind the wheel of one. Here are four sedans that will have massive price drops in early 2025. For You: Trending Now: With a significant price cut of $6,000, the 2025 bZ4X has some of the most significant price cuts compared to past models, according to Joe Giranda, director of sales and marketing for CFR Classic, a car shipping company. 'The reduction in its price makes it more competitively appealing in the EV market. However, its limited range and slower charging speeds have the potential to discourage other buyers,' Giranda said. 'These factors, combined with aggressive lease and financing deals, are likely to contribute to its depreciation in the used market,' he added. Consider This: From Giranda's perspective, the 2023 Hyundai Elantra is also expected to have some of the most significant price drops at the beginning of 2025. 'Like other car manufacturers, Hyundai is known for aggressive discounts and lease incentives for newer models, which puts pressure on the prices of recently used inventory,' Giranda explained. 'The upcoming 2025 Elantra is also likely to draw consumer attention with its new tech, thus making the 2023 models less desirable,' he added. 'This will be a good time for buyers looking for a modern mid-size sedan with good safety features at an economical price to make the purchase.' The 2022 and 2023 Chevrolet Bolt EV models will lose value significantly as Chevrolet stops producing the Bolt to focus on new Ultium-based EVs, in Giranda's professional assessment. 'This announcement has already slowed demand, and these models will soon look out of date as EV technology progresses,' Giranda explained. 'For buyers interested in an affordable entry point into EV ownership with federal incentives no longer applying, this price drop makes the Bolt incredibly enticing.' One of the most notable names for sedans, last year's Toyota Camry is expected to go way down in terms of price from now until the beginning of April. 'With the 2025 model coming out, the 2024 Camry is slowly decreasing in value,' Giranda said. 'The 2024 model's pricing is stabilizing, but as time progresses, there is a greater chance for the 2024 Camry to undergo a price dip due to the newer model being released.' More From GOBankingRates Here's the Minimum Salary Required To Be Considered Upper-Middle Class in 2025 The Money You Need To Save Monthly To Retire Comfortably in Every State Warren Buffett: 10 Things Poor People Waste Money OnThis article originally appeared on 4 Sedans That Will Have Massive Price Drops in Early 2025
Yahoo
26-02-2025
- Automotive
- Yahoo
4 Cars With High Resale Value That Rarely Need Repairs
Shopping for a vehicle can be fun, as well as overwhelming. To see if a new ride fits your budget, you might be trying to narrow down what it takes to fix that car while it is in your ownership, along with how much you might get for selling it at some point down the road. Check Out: Try This: Finding an automobile that does not need a lot of maintenance and can fetch a good price in the future is tough, though not impossible to find. Here are four cars with high resale values that rarely need repairs. According to Joe Giranda, the director of sales and marketing for CFR Classic, the Toyota Tacoma is a midsize pickup that earns praise for not only toughness, but a strong resale value. The 2025 Tacoma starts at $31,590, and after 5 years, Giranda said it 'will still be worth approximately 67% of its original value.' As for repairs, Giranda explained, 'Annual repair cost is around $673, and major repairs are rare, with only an 18.5% chance over 10 years. This model's reliability comes from a strong suspension system and its straightforward design enhanced by Toyota Safety Sense features.' Consider This: Starting at $24,250, the Honda Civic retains 62.5% of its value after 5 years, and its owners spend an average of about $368 per year on repair costs, Giranda said. 'This reliability is primarily a result of the efficient engines and quality build,' explained Giranda, adding that there are a number of factors that cause the Civic to stand-out as an excellent buy among vehicles within its class. The 2025 Outback starts at $29,010 and 'retains roughly 70% of its original worth after five years,' Giranda said, noting that the annual repair cost of $847 is offset by the moderately low chance of major fix-it jobs for the next decade. 'Moreover, the Outback's spacious and trim technologically advanced interiors, paired with its superior symmetrical AWD and drivetrain, make it a truly reliable vehicle,' Giranda added. 'Because of its exceptional durability and off-road prowess, the Toyota 4Runner is regarded as a solid SUV option among cars with high resale value,' Giranda said. With a starting MSRP of $40,770 for a 2025 model, the Toyota 4Runner remarkably only loses about 30.2% of its value after five years, according to Giranda, who emphasized its strong resale value. 'Owners spend around $514 annually on repairs, and the risk of major breakdowns is very low due to its sturdy body-on-frame construction, which contributes to its reliability and toughness,' Giranda explained. 'The combination of great resale value, off-roading capabilities and spacious interiors certainly justifies the premium price of this SUV.' More From GOBankingRates This article originally appeared on 4 Cars With High Resale Value That Rarely Need Repairs
Yahoo
26-01-2025
- Automotive
- Yahoo
2 New Luxury Cars That Most Likely Aren't Worth the Expensive Upkeep
Luxury cars are, by virtue of being what they are, expensive. The average luxury car price hovers at about $75,000, but you can easily find ones that go for six figures. And when you tack on taxes, maintenance, repairs, depreciation rates, and possible financing charges, you're looking at potentially spending thousands or tens of thousands more than the sticker price. Trending Now: Check Out: 4 Low-Risk Ways To Build Your Savings in 2025 But worth is very subjective. For some, the concept of spending more than $20,000 on a car seems overkill. For others, spending $100,000 is perfectly acceptable — even with the potentially expensive upkeep. Still, if you're thinking about buying a luxury car this year and want to know which ones might not be worth the upkeep, and which are, here are some options. According to Joe Giranda, a car expert and director of sales and marketing at CFR Classic, the Maserati Grecale might not be worth the cost. This luxury SUV costs about $75,000, but can feel 'underwhelming for the cost.' 'While it carries the prestigious Maserati badge, its interior quality and tech features don't measure up to competitors like the Porsche Macan,' he said. 'For a similar price, you can get more refined craftsmanship and technology elsewhere.' Maseratis are also notoriously expensive to maintain. According to ConsumerAffairs, they cost an average of $1,600 a year in preventive maintenance alone. The typical vehicle costs closer to $650 in both maintenance and repairs. Read Next: The Mercedes-Benz EQS SUV is luxurious with a futuristic design. It's even got a solid electric range of about 305 miles. It also costs around $105,000 at base. According to Giranda, this vehicle doesn't quite measure up to its competitors in terms of price or quality of the interior materials. 'At this price, there are other luxury EVs that deliver better value,' he said. While this particular electric SUV hasn't been out long, Mercedes-Benz tends to have high upkeep costs. In the first decade of service alone, some models cost about $14,175. This is higher than similar luxury brands by nearly $1,100. While the Maserati Grecale and the Mercedes-Benz EQS SUV might not be worth the expensive upkeep, the following vehicles might be, according to Giranda: Genesis GV80: 'Genesis has built a reputation for blending luxury with practicality, making it an excellent choice,' he said. This particular SUV has the advanced tech, sleek design and high-quality materials you'd expect in such a vehicle — but the starting price is only about $57,000. That's lower than you'd get with other luxury SUV brands. Lexus LC 500: The Lexus LC 500 has a starting price of about $99,000, making it one of the more expensive options on this list. That said, Giranda pointed out that it has a stunning design and offers a luxe driving experience. Lexus is also known to be a reliable brand, meaning less frequent trips to the auto shop. When it comes to any vehicle, luxury or otherwise, one person's experience will very likely differ from the next. You could end up with a Maserati Grecale, for example, and find it's worth the upkeep and associated costs. Or you might purchase a Lexus LC 500 and find that it isn't. It's ultimately about what you're looking for, what you're willing to deal with, and your financial situation. That said, here are some tips to making shopping for a luxury car a bit easier: Do your research. Before making the investment, compare different luxury cars to see what's available, the various price points and which ones have what you need. Set a price point and a budget. No matter how tempting that upgrade might be, try to stick to a budget you're happy with. Make sure your budget also accounts for any other upfront and ongoing expenses so you don't end up in a sticky spot. Test drive some cars. Online research is one thing, but nothing beats a good test drive. After you've created a shortlist of vehicles, take the time to test drive them. Compare dealerships. Don't go with the first dealership you find that sells the car you want — unless it's truly the perfect fit. Compare several places, look for any current incentives or promotions, and narrow down your list until you find the right one for you. More From GOBankingRates 4 Subtly Genius Moves All Wealthy People Make With Their Money 4 Unusual Ways To Make Extra Money That Actually Work This article originally appeared on 2 New Luxury Cars That Most Likely Aren't Worth the Expensive Upkeep Sign in to access your portfolio
