Latest news with #ChevyEquinoxEV
NBC News
4 days ago
- Automotive
- NBC News
EV sales soar as Trump axes $7,500 tax credit: 'People are rushing out' to buy, analyst says
Consumers are racing to buy electric vehicles before a fast-approaching deadline to claim tax credits worth up to $7,500, according to auto analysts. Legislation championed by Republicans on Capitol Hill and signed by President Donald Trump in July eliminates the tax breaks — available for new, used and leased EVs — after Sept. 30. The Biden-era Inflation Reduction Act had originally offered the tax breaks to consumers through 2032. 'We're expecting Q3 may be [a] record for EV sales because of the tax incentives going away,' said Stephanie Valdez Streaty, a senior analyst at Cox Automotive. 'People are rushing out' to buy, she said. 'Significant volume' of EV sales Consumers purchased nearly 130,100 new EVs in July, the second-highest monthly sales tally on record, behind roughly 136,000 sold in December, according to Cox Automotive data. The July figures represent a 26.4% increase from June and nearly 20% increase year-over-year, Streaty said. The share of EV sales in July also accounted for about 9.1% of total sales of passenger vehicles that month, the largest monthly share on record, according to Cox. 'We're seeing significant volume in new EVs,' said Liz Najman, director of market insights at Recurrent, an EV marketplace and data provider. Meanwhile, there were nearly 36,700 used EVs sold in July, a record monthly high, Cox data shows. Specific EV models — the Chevy Equinox EV, Honda Prologue and Hyundai IONIQ 5 — also saw record-breaking sales last month, Najman said. There were 8,500 Equinox EVs sold in July, the highest monthly EV total in the U.S. for any model outside of Tesla, which is the market leader, Najman said. (This comes as Tesla's sales have declined for two consecutive quarters, by about 12% year-over-year in Q2 and 9% in Q1, according to Cox data.) $7,500 tax credit puts EVs near price parity The tax credits — worth up to $7,500 for new EVs and $4,000 for used EVs — aim to make EV purchases more financially enticing for consumers. The EV tax breaks were one of many policies the Biden administration adopted to try try to cut U.S. greenhouse gas emissions. The transportation sector is the largest source of U.S. greenhouse gas emissions. EVs are 'unambiguously better' for the environment than traditional cars with an internal combustion engine, according to the Massachusetts Institute of Technology. However, while EVs tend to be cheaper over the lifecycle of car ownership relative to traditional gasoline vehicles, they generally carry a higher upfront cost, analysts said. The average transaction price for all new passenger vehicles (aside from battery electric vehicles) in July was $48,078, according to Cox data. The average for new EVs was $55,689, before any dealer incentives and tax credits, Cox said. If the purchase were to qualify for the full $7,500 tax credit, it'd be near price parity, around $48,189. The price gap between EV and gasoline cars 'no longer exists,' Tom Libby, an analyst at S&P Global, wrote in July. The disappearance of the federal tax credits 'jeopardizes' price competitiveness, he wrote. States and utilities may offer additional financial incentives for EVs, depending on where consumers live, analysts said. EV dealers boost incentives Dealers are also seeking to capitalize on the upcoming Sept. 30 deadline, stoking a sense of consumer urgency to boost sales, analysts said. ″$7,500 Federal Tax Credit Ending,' was in bold lettering at the top of Tesla's home page as of early afternoon Friday. 'Limited Inventory — Take Delivery Now,' the automaker wrote underneath. Sept. 30 is the date by which consumers must take ownership of the car (essentially, be driving it off the lot) to qualify for an EV tax credit. Beyond the tax breaks, dealers are also offering relatively generous financial benefits to entice consumers. They provided about $9,800 of additional financial incentives, on average, to new-EV buyers in July, worth about 17.5% of the average transaction price, Cox data shows. That share is the highest percentage dating to October 2017, which was before the 'new era of EV adoption' when monthly sales volume was quite low, Streaty said. EV sales are likely to 'collapse' in the fourth quarter of 2025, once the tax credit expires and the market adjusts to a new financial reality, she said. Used EVs are likely to be a bright spot in the near term, analysts said. Growth has been accelerating, and most buyers today already don't qualify for the $4,000 tax break. ″[A]pproximately one-third of used EVs qualified for the incentive anyway,' Cox Automotive wrote last month. 'With availability growing and incentives for new EVs expected to fall, the used EV market may grow faster in the quarters ahead.'
CNBC
4 days ago
- Automotive
- CNBC
EV sales soar as Trump axes $7,500 tax credit: 'People are rushing out' to buy, analyst says
Consumers are racing to buy electric vehicles before a fast-approaching deadline to claim tax credits worth up to $7,500, according to auto analysts. Legislation championed by Republicans on Capitol Hill and signed by President Donald Trump in July eliminates the tax breaks — available for new, used and leased EVs — after Sept. 30. The Biden-era Inflation Reduction Act had originally offered the tax breaks to consumers through 2032. "We're expecting Q3 may be [a] record for EV sales because of the tax incentives going away," said Stephanie Valdez Streaty, a senior analyst at Cox Automotive. "People are rushing out" to buy, she said. Consumers purchased nearly 130,100 new EVs in July, the second-highest monthly sales tally on record, behind roughly 136,000 sold in December, according to Cox Automotive data. The July figures represent a 26.4% increase from June and nearly 20% increase year-over-year, Streaty said. The share of EV sales in July also accounted for about 9.1% of total sales of passenger vehicles that month, the largest monthly share on record, according to Cox. "We're seeing significant volume in new EVs," said Liz Najman, director of market insights at Recurrent, an EV marketplace and data provider. Meanwhile, there were nearly 36,700 used EVs sold in July, a record monthly high, Cox data shows. Specific EV models — the Chevy Equinox EV, Honda Prologue and Hyundai IONIQ 5 — also saw record-breaking sales last month, Najman said. There were 8,500 Equinox EVs sold in July, the highest monthly EV total in the U.S. for any model outside of Tesla, which is the market leader, Najman said. (This comes as Tesla's sales have declined for two consecutive quarters, by about 12% year-over-year in Q2 and 9% in Q1, according to Cox data.) The tax credits — worth up to $7,500 for new EVs and $4,000 for used EVs — aim to make EV purchases more financially enticing for consumers. The EV tax breaks were one of many policies the Biden administration adopted to try try to cut U.S. greenhouse gas emissions. The transportation sector is the largest source of U.S. greenhouse gas emissions. More from Personal Finance:Trump tariffs make investing 'tricky'Imposter scams cost older adults $700 million in 2024What private assets in 401(k) plans mean for investors EVs are "unambiguously better" for the environment than traditional cars with an internal combustion engine, according to the Massachusetts Institute of Technology. However, while EVs tend to be cheaper over the lifecycle of car ownership relative to traditional gasoline vehicles, they generally carry a higher upfront cost, analysts said. The average transaction price for all new passenger vehicles (aside from battery electric vehicles) in July was $48,078, according to Cox data. The average for new EVs was $55,689, before any dealer incentives and tax credits, Cox said. If the purchase were to qualify for the full $7,500 tax credit, it'd be near price parity, around $48,189. The price gap between EV and gasoline cars "no longer exists," Tom Libby, an analyst at S&P Global, wrote in July. The disappearance of the federal tax credits "jeopardizes" price competitiveness, he wrote. States and utilities may offer additional financial incentives for EVs, depending on where consumers live, analysts said. Dealers are also seeking to capitalize on the upcoming Sept. 30 deadline, stoking a sense of consumer urgency to boost sales, analysts said. "$7,500 Federal Tax Credit Ending," was in bold lettering at the top of Tesla's home page as of early afternoon Friday. "Limited Inventory — Take Delivery Now," the automaker wrote underneath. Sept. 30 is the date by which consumers must take ownership of the car (essentially, be driving it off the lot) to qualify for an EV tax credit. Beyond the tax breaks, dealers are also offering relatively generous financial benefits to entice consumers. They provided about $9,800 of additional financial incentives, on average, to new-EV buyers in July, worth about 17.5% of the average transaction price, Cox data shows. That share is the highest percentage dating to October 2017, which was before the "new era of EV adoption" when monthly sales volume was quite low, Streaty said. EV sales are likely to "collapse" in the fourth quarter of 2025, once the tax credit expires and the market adjusts to a new financial reality, she said. Used EVs are likely to be a bright spot in the near term, analysts said. Growth has been accelerating, and most buyers today already don't qualify for the $4,000 tax break. "[A]pproximately one-third of used EVs qualified for the incentive anyway," Cox Automotive wrote last month. "With availability growing and incentives for new EVs expected to fall, the used EV market may grow faster in the quarters ahead."
Yahoo
29-04-2025
- Automotive
- Yahoo
Surprising new data reveals the five best-selling electric vehicle brands in US — but one expert says 'the road ahead will be anything but smooth'
According to recent data estimates, Tesla has maintained its place as America's leader in the electric vehicle market. The other top EV brands are Ford, GM, BMW, and Hyundai. As detailed by Teslarati, Cox Automotive released a report on EV sales and market increases in the industry. The report noted an 11.4% increase in overall EV sales during the first quarter of 2025, with 296,277 EVs sold in the U.S. New EV sales comprised 7.5% of the market in this quarter. Although Tesla outsold the next 10 bestselling EV brands combined, its sales declined by 8.6%. Analysts have attributed much of Tesla's declining sales performance to political opinions about the brand's controversial CEO, Elon Musk. However, Musk aside, Tesla EVs themselves continue to impress drivers, as evidenced by extensive surveys. The Cox Automotive report noted a 114.2% sales increase in GM Chevrolet EVs, such as the Chevy Equinox EV. Porsche and Toyota have also seen substantial growth with their EVs. Teslarati suggested that Tesla's sales declines can be attributed to more than just resentment toward Musk for his involvement in the Trump administration. For example, other automakers may be enticing drivers with trade-in deals and special promotions. More brands entering the EV market also give drivers more choices for their EV investments beyond the familiar Tesla brand. At the same time, several electric vehicles are currently benefiting from Inflation Reduction Act credits of up to $7,500 if the car meets certain criteria for being assembled in the United States — incentives that may not last forever — and many brands are facing the prospect of increasing prices to remain profitable in the face of tariffs. "The year certainly started strong, but the road ahead will be anything but smooth," Valdez Streaty, an analyst for Cox Automotive, said of the EV sales landscape, per Teslarati. Preferences among brands mark consumer priorities and current trends in the EV industry, but the crucial data lies in the overall growth of clean energy transportation and the prevalence of non-gas vehicles on the road. If you were going to purchase an EV, which of these factors would be most important to you? Cost Battery range Power and speed The way it looks Click your choice to see results and speak your mind. The more people who embrace EV ownership, the cleaner the air and the cooler the planet. As EVs become more common among drivers and EV technology advances, it stands to reason that more myths will be dispelled, paving the way for a greener future. In a press release, Cox Automotive wrote: "The rest of 2025 will likely be a volatile one for EV sales in the U.S., despite the introduction of new product and healthy incentives. If the new auto tariffs hold, they will pose a monumental challenge for many automakers, particularly due to the tariffs on steel and, importantly for EVs, aluminum." Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet. Sign in to access your portfolio
Yahoo
30-03-2025
- Automotive
- Yahoo
Looming car tariffs have some Americans rushing to dealerships to avoid sticker shock
Auto dealerships across the United States could see a jump in customer traffic this week as cost-conscious buyers look to avoid a possible uptick in prices and maintenance costs over the next few years, according to industry analysts. The growing concern over sticker shock has one cause: President Donald Trump's 25% tariffs on imported vehicles and parts, which are expected to take effect Thursday. The tariffs will likely impact the cost of cars built in American factories, too, by thousands of dollars. That's because there is no such thing as an all-American car. All 10.2 million cars built in US factories last year were built with a significant number of imported parts, mainly from Canada and Mexico. After a surge in car-buying, auto sales can expect to drop while new and used car prices increase, and some models will be eliminated, according to Cox Automotives. 'We have seen this movie before. During COVID, supply became constrained, costs skyrocketed. While the increase in prices this time may be for completely different reasons, it still stands to reason that the market will not bear another significant increase,' Erin Keating, executive analyst at Cox, said Friday in a note. The cost of a car assembled in North America — such as a Ford, Chrysler, GM or Honda — could increase between $4,000 and $10,000, according to a February estimate from Michigan-based think tank Anderson Economic Group. The price of an electric vehicle, meanwhile, could cost at least $12,000 more. Miguel Colom, a resident of Bethlehem, Pennsylvania, told CNN that he and his wife plan to buy a Chevy Equinox EV but have felt rushed to make a purchase before May because of the looming tariffs. 'A $12,500 price increase on the vehicle we chose would effectively remove it from consideration, pushing us to make a purchase decision with less financial runway than we had hoped,' he said in an email to CNN. Colom added that he and his wife would be hesitant to buy a new car even if there was a modest price increase. While one concern has been the price of the cars themselves, the cost of maintenance for older car models has worried some Americans. Robert Wyatt of New Jersey told CNN he traded in his 9-year-old car, a Mercedes GLE-350, for a new Toyota. He initially planned to buy a car within the next two years but bought it sooner because of Trump's tariff plans. 'Things start breaking,' he said about his previous vehicle. 'I was afraid of that maintenance. With a new vehicle it's gonna be a couple of years before repairs.' Sales managers told CNN that they have been fielding more inquiries, though there hasn't been a dramatic jump in sales just yet. Tom Tatich, the general manager at a Toyota dealership in Marysville, Washington, said customers are uneasy about how car prices will look down the road. Tatich says high demand and a limited supply have been an ongoing issue at Toyota. He believes the demand will remain consistent once tariffs take effect and says customers have tried to lock in prices for cars yet to arrive. 'There are people wanting to ensure the prices quoted on inbound cars won't change,' he explained. A lack of reassurances from Trump has done little to ease uncertainty. On Saturday, Trump told NBC News' Kristen Welker in a phone interview that he encourages price increases on foreign cars because 'if the prices on foreign cars go up, they're going to buy American cars.' Automakers are more likely to cut back on production while they wait to see whether Trump's tariffs will stick, which would then lead to inventory declines. With a lower supply, dealerships will raise their prices in the coming months. There are also industry concerns about a decline in the number of customers. Trump has repeatedly floated tariff proposals since taking office, with the first slate on Canada and Mexico initially planned for early February — only to be delayed a month into March, and again into early April. He later announced the new 25% tariffs on all car imports and car parts, such as engines and transmissions. Although Trump has said he won't delay tariffs again for automakers, he could change his mind before or after tariffs take effect. Automakers tiptoeing around that uncertainty by delaying production and buyers who hold on to their vehicles by taking a wait-and-see approach to tariffs means reduced supply and increased prices. In Wisconsin, Doug Schoepp, owner of Schoepp Motors, said his dealership has about 500 available cars, which should last two to three months. He told CNN he is unsure whether Trump's tariff policies will be confirmed Thursday or if the president will loosen up on his promises. If tariffs remain, everyone will pay more, Schoepp added. 'The car business will definitely hurt if the tariffs go in place. If (Trump) sticks to his guns, yeah, new cars could go up as much as 25%. Used cars will go up 10% at minimum,' Schoepp said. CNN's Chris Isidore contributed to this report.
CNN
30-03-2025
- Automotive
- CNN
Looming car tariffs have some Americans rushing to dealerships to avoid sticker shock
Auto dealerships across the United States could see a jump in customer traffic this week as cost-conscious buyers look to avoid a possible uptick in prices and maintenance costs over the next few years, according to industry analysts. The growing concern over sticker shock has one cause: President Donald Trump's 25% tariffs on imported vehicles and parts, which are expected to take effect Thursday. The tariffs will likely impact the cost of cars built in American factories, too, by thousands of dollars. That's because there is no such thing as an all-American car. All 10.2 million cars built in US factories last year were built with a significant number of imported parts, mainly from Canada and Mexico. After a surge in car-buying, auto sales can expect to drop while new and used car prices increase, and some models will be eliminated, according to Cox Automotives. 'We have seen this movie before. During COVID, supply became constrained, costs skyrocketed. While the increase in prices this time may be for completely different reasons, it still stands to reason that the market will not bear another significant increase,' Erin Keating, executive analyst at Cox, said Friday in a note. The cost of a car assembled in North America — such as a Ford, Chrysler, GM or Honda — could increase between $4,000 and $10,000, according to a February estimate from Michigan-based think tank Anderson Economic Group. The price of an electric vehicle, meanwhile, could cost at least $12,000 more. Miguel Colom, a resident of Bethlehem, Pennsylvania, told CNN that he and his wife plan to buy a Chevy Equinox EV but have felt rushed to make a purchase before May because of the looming tariffs. 'A $12,500 price increase on the vehicle we chose would effectively remove it from consideration, pushing us to make a purchase decision with less financial runway than we had hoped,' he said in an email to CNN. Colom added that he and his wife would be hesitant to buy a new car even if there was a modest price increase. While one concern has been the price of the cars themselves, the cost of maintenance for older car models has worried some Americans. Robert Wyatt of New Jersey told CNN he traded in his 9-year-old car, a Mercedes GLE-350, for a new Toyota. He initially planned to buy a car within the next two years but bought it sooner because of Trump's tariff plans. 'Things start breaking,' he said about his previous vehicle. 'I was afraid of that maintenance. With a new vehicle it's gonna be a couple of years before repairs.' Sales managers told CNN that they have been fielding more inquiries, though there hasn't been a dramatic jump in sales just yet. Tom Tatich, the general manager at a Toyota dealership in Marysville, Washington, said customers are uneasy about how car prices will look down the road. Tatich says high demand and a limited supply have been an ongoing issue at Toyota. He believes the demand will remain consistent once tariffs take effect and says customers have tried to lock in prices for cars yet to arrive. 'There are people wanting to ensure the prices quoted on inbound cars won't change,' he explained. A lack of reassurances from Trump has done little to ease uncertainty. On Saturday, Trump told NBC News' Kristen Welker in a phone interview that he encourages price increases on foreign cars because 'if the prices on foreign cars go up, they're going to buy American cars.' Automakers are more likely to cut back on production while they wait to see whether Trump's tariffs will stick, which would then lead to inventory declines. With a lower supply, dealerships will raise their prices in the coming months. There are also industry concerns about a decline in the number of customers. Trump has repeatedly floated tariff proposals since taking office, with the first slate on Canada and Mexico initially planned for early February — only to be delayed a month into March, and again into early April. He later announced the new 25% tariffs on all car imports and car parts, such as engines and transmissions. Although Trump has said he won't delay tariffs again for automakers, he could change his mind before or after tariffs take effect. Automakers tiptoeing around that uncertainty by delaying production and buyers who hold on to their vehicles by taking a wait-and-see approach to tariffs means reduced supply and increased prices. In Wisconsin, Doug Schoepp, owner of Schoepp Motors, said his dealership has about 500 available cars, which should last two to three months. He told CNN he is unsure whether Trump's tariff policies will be confirmed Thursday or if the president will loosen up on his promises. If tariffs remain, everyone will pay more, Schoepp added. 'The car business will definitely hurt if the tariffs go in place. If (Trump) sticks to his guns, yeah, new cars could go up as much as 25%. Used cars will go up 10% at minimum,' Schoepp said. CNN's Chris Isidore contributed to this report.
