Latest news with #CoxAutomotive
Forbes
6 hours ago
- Automotive
- Forbes
Here's How Trump's ‘One Big Beautiful Budget Act' Would Affect Car Buyers And Owners
President Trump's "One Big Beautiful Budget Act" includes provisions that would directly affect ... More motorists. The U.S. House of Representatives has passed what's officially called the "One Big Beautiful Bill Act," and while it's likely to be sliced and diced to some extent by the Senate and sent back to the House, as written it includes several provisions that would directly impact those owning or looking to buy a car, truck or SUV. Here's a quick look at the key measures: As written, the bill would allow qualifying car buyers to claim a tax deduction of up to $10,000 for interest paid on a new-vehicle loan. The deduction would extend from 2025 to 2028 and be subject to certain restrictions. For starters, it would only apply to vehicles that are assembled in the U.S., and not include leases and interest paid on commercial vehicles. Eligibility to take the deduction would phase out for individuals earning more than $100,000, or $200,000 for couples filing jointly. On the plus side, a taxpayer wouldn't have to itemize to be able to claim the deduction. According to Kelley Blue Book, the average price of a new vehicle stands at around $48,000, with car loan rates at an average of 8.64%. Cox Automotive predicts that if a given owner pays $2,000 per year in car loan interest, he or she would save around $400 in taxes, or $2,000 over the course of a five year loan. At the least the new deduction would help to offset the inevitable price hikes likely to be caused by Trump's assorted import tariffs (see below). It's well known that President Trump is no fan of electric vehicles, despite his extended bromance with Tesla CEO Elon Musk, and the budget bill reflects that attitude. As expected it eliminates the one-time tax deduction/rebate of up to $7,500 that was enacted on President Obama's watch and later modified by President Biden. As it now stands, the credit can only be claimed by income-qualifying buyers on a relative handful of EVs that meet certain requirements for domestic production and are priced under $50,000 for passenger cars and $80,000 for trucks, vans and SUVs. (Some automakers have managed to exploit a loophole in the legislation that passes all or part of the incentive to those who lease an EV that otherwise doesn't qualify for the credit.) The provision would also eliminate the tax credit of up to $4,000 or 30 percent of a used EV's sale price as well. While the credits wouldn't be completely eliminated until December 31, 2026, they would expire at the end of 2025 for automakers who have sold more than 200,000 qualifying EVs. That includes virtually all the major players in the electric vehicle market, but favors newcomers like Lucid and Rivian. The bottom line here is those considering a battery-electric car, truck or SUV should act sooner rather than later to be able to claim this lucrative incentive. The bill as written would also impose a new federally imposed annual registration fee of $250 for EV owners and $100 for those driving gas/electric hybrids. Assumedly this is to help make up for gas tax money not collected from those driving full electric or lessened among owners of higher-mileage gas/electric models. The bill places the responsibility for assessing the fee on individual states and would penalize those that do not comply. As it stands, some states like California and Washington already charge EV owners an additional annual registration fee, with the federal charge likely to be added on top of the above amounts. The One Big Beautiful Bill Act would essentially prohibit the Federal Trade Commission from enforcing what's called the Combating Auto Retail Scams Rule. Known as the CARS Rule, it requires car dealers to provide full pricing disclosure and obtain a buyer's explicit consent to purchase add-ons like service contracts, rustproofing and the like. However, the restriction would reportedly only be in effect until September 30, so it's not exactly a complete cancellation. And while not a part of the budget bill, new-vehicle buyers are almost certain to pay more in the months to come from federal tariffs on vehicles and components imported from other countries. This includes the large percentage of domestic-branded cars and trucks assembled in Canada and Mexico, and the multitude of parts sourced from China, not to mention a whopping 50% just announced on imported steel. However, since Trump's tariffs are currently undergoing legal challenges and seem to be subject to whichever way the political wind blows, it's not exactly clear how much sticker prices will be affected when and if the dust settles. Sources predict hikes as high as $5,000 to $10,000 on imported vehicles and $2,000-$3,000 on those produced domestically. Of course, everything in the One Big Beautiful Bill Act remains subject to revision until Trump signs a final version into law, so stay tuned.
Yahoo
18 hours ago
- Automotive
- Yahoo
Consumers sustain interest in EVs but range anxiety still a concern
This story was originally published on Automotive Dive. To receive daily news and insights, subscribe to our free daily Automotive Dive newsletter. Tariffs and political uncertainty have disrupted the automobile market, but consumers are no less likely to consider purchasing electric vehicles, according to a recent study by J.D. Power. The 2025 U.S. Electric Vehicle Consideration Study, released May 15, found that 59% of vehicle shoppers said they were at least somewhat likely to consider an EV — the same rate the study reported one year ago. Between January and April 2025, J.D. Power surveyed 8,164 people who were planning to purchase a vehicle within a year on their intent to consider an EV. Per the report, 24% of shoppers said they were 'very likely' to consider purchasing an EV, while 35% said they were 'somewhat likely.' In fact, according to April Cox Automotive data, the EV market continues to grow. Compared to the same period last year, U.S. EV sales increased 11.4% in the first quarter of 2025. 'Despite the market volatility, EVs have found a solid ground for consumer consideration,' Brent Gruber, executive director of the EV practice at J.D. Power, said in a statement. J.D. Power's findings shed light on consumer wants and needs, including the ways people shop for EVs and their biggest concerns with the vehicles. For instance, EV shoppers are likely to look at more vehicle brands — 'cross-shop' — than those shopping for ICE vehicles. The study reported that those likely to consider EVs look at an average 2.8 or 2.9 brands, while a previous J.D. Power study found that people shopping for gas-powered vehicles considered an average of 2.5 brands. 'As more EV options come to market, this should serve as an encouraging sign for automakers because it's an opportunity for them to gain a foothold and pull shoppers from outside their brands,' Gruber said, adding that the study revealed that EV shoppers also consider EVs from both mass market and luxury brands. Yet range anxiety remains a key concern, as 52% of vehicle shoppers cited charging station availability as a reason to forgo purchasing an EV. At the same time, another long-standing concern with EVs — their expense — fell in importance. The study found that 43% of shoppers said EV purchase price was a reason to avoid buying an EV, compared to 47% last year. In addition, 33% of shoppers stated they were concerned with EV cost of ownership, compared to 35% of shoppers in 2024. Much of the growth in EV sales can be attributed to more affordable, mass-market automakers such as General Motors. Still, the issue of EV affordability might box out the age group most interested in purchasing them — younger shoppers ages 25-49. 'It's an interesting dichotomy because younger consumers are the most receptive to EVs, but also the least likely to be able to afford them, while older consumers have the financial means but show less interest,' Gruber said. According to Gruber, the industry needs to focus on affordability and consumer education to continue to drive EV growth. Less expensive EVs would address what he described as the 'pent-up demand for more affordable products,' while improving consumer education could 'ease concerns' about EV ownership, as many, like public charging availability, 'are less problematic than they might seem when it comes to actually owning an EV,' he said. Recommended Reading New York expands EV purchase, charging equipment incentives
Daily Mail
5 days ago
- Automotive
- Daily Mail
Report: Electric cars lose more than half their value in two years
Electric cars are losing more than half their value within two years, according to a new report. Analysis by Cox Automotive has suggested that a 24-month-old battery car sold to the trade in April on average retained just 47 per cent of its original new cost. However, two years earlier, an EV of the same age profile was - on average - holding on to 83 per cent of its new price. The dramatic acceleration in depreciation is being blamed on manufacturers who are caught in an unprecedented catch 22 scenario currently playing out in the automotive sector. With car makers being forced to increase their sales of EVs to meet Government-mandated targets, they are offering huge discounts on new models to make them more attractive to new customers in order to meet their quotas. But this is having a significant knock-on impact for residual prices, as drivers are seeing more value for money buying new rather than opting for a nearly-new second-hand EV, which has seen used prices tumble. The Zero Emission Vehicle (ZEV) mandate introduced to law last January requires mainstream car manufacturers to sell an increasing share of EVs every year between now and 2035. Failure to adhere to these quotas can result in significant fines of £12,000 for every car sold below the required threshold for that year. In 2024, the minimum quota was for 22 per cent of all deliveries by manufacturers to be zero-emission electric cars. However, the target jumps to 28 per cent this year, 33 per cent in 2026 and 80 per cent by 2030. Officials reported that every mainstream brand achieved last year's 22 per cent EV sales mix - though at a huge cost to car companies. The Society of Motor Manufacturers and Traders (SMMT) reported that makers lost a collective £4billion in discounted prices as they tried to make electric cars appear more attractive to petrol and diesel counterparts. Mike Hawes, chief exec at the trade body, described the scale of these discounts as 'unsustainable'. Labour's decision to force EV owners to pay car tax for the first time from April has also dampened demand for new models - and triggered further manufacturer discounts. Both Vauxhall and Abarth - the performance division of Fiat - have recently reduced prices of their electric cars so that they sit below a £40,000 expensive car tax supplement being imposed on new EVs starting from next year. But Cox Automotive Europe discounts are now having a huge knock-on effect on the second-hand market, because 'nearly new' used EVs are falling in value as a direct result. Second-hand electric vehicle prices are also taking a hit from the huge acceleration in available models coming to market, with March seeing a record 69,313 new electric cars entering the road. A rapid development of battery technology is also stinging the value of quickly outdated older EVs, while the emergence of new cheaper brands - predominantly from China - is also pushing second-hand values lower. As such, a two-year-old electric car today is now holding just 53 per cent of its original price. In contrast, the average diesel car selling to trade with the same age profile is retaining 30 per cent of its new value. When second-hand EV values were at their peak in 2022 - as a result of supply constraints around the Covid-19 pandemic - a two-year-old electric car was losing only 17 per cent of its showroom price. Philip Nothard, insight director at Cox Automotive Europe, said: 'The current performance of nearly-new EVs in the used market is still much lower than we would anticipate for vehicles in this age profile. 'The heavy discounts offered on new vehicles mean that consumers can pick up a brand-new model for the same price as a nearly-new model. 'This gives consumers very little incentive to consider them, which is a real blow to a market that needs all the incentives it can get its hands on.' On the flipside, EVs between three to five years old are performing much better. At auction, these vehicles have seen only a modest price drop of 15 per cent on average in the same time period as they aren't impacted as severely by heavy manufacturer discounts and tend to attract a different driver. Last month, Prime Minister Sir Keir Starmer was forced to water down Britain's electric vehicle sales targets in response to Donald Trump's watershed tariff announcement. The PM's new measures included additional leniencies in the ZEV mandate in a bid to 'support car makers'. And only last week, a leaked letter from transport minister Lilian Greenwood revealed that the Government is considering dumping the expensive car supplement - widely being referred to as the 'Tesla Tax' - for new electric cars in an effort to stir up more demand for green vehicles.
Daily Mail
5 days ago
- Automotive
- Daily Mail
Used electric cars lose half their value in two years - manufacturers blamed for discounting new prices
Electric cars are losing more than half their value within two years, according to a new report. Analysis by Cox Automotive has suggested that a 24-month-old battery car sold to the trade in April on average retained just 47 per cent of its original new cost. However, two years earlier, an EV of the same age profile was - on average - holding on to 83 per cent of its new price. The dramatic acceleration in depreciation is being blamed on manufacturers who are caught in an unprecedented catch 22 scenario currently playing out in the automotive sector. With car makers being forced to increase their sales of EVs to meet Government-mandated targets, they are offering huge discounts on new models to make them more attractive to new customers in order to meet their quotas. But this is having a significant knock-on impact for residual prices, as drivers are seeing more value for money buying new rather than opting for a nearly-new second-hand EV, which has seen used prices tumble. This graphs shows the average auction sale price for EVs under 24 months old as a percentage of their original cost new, with the typical electric car retaining just 47% of its showroom price The Zero Emission Vehicle (ZEV) mandate introduced to law last January requires mainstream car manufacturers to sell an increasing share of EVs every year between now and 2035. Failure to adhere to these quotas can result in significant fines of £12,000 for every car sold below the required threshold for that year. In 2024, the minimum quota was for 22 per cent of all deliveries by manufacturers to be zero-emission electric cars. However, the target jumps to 28 per cent this year, 33 per cent in 2026 and 80 per cent by 2030. Officials reported that every mainstream brand achieved last year's 22 per cent EV sales mix - though at a huge cost to car companies. The Society of Motor Manufacturers and Traders (SMMT) reported that makers lost a collective £4billion in discounted prices as they tried to make electric cars appear more attractive to petrol and diesel counterparts. Mike Hawes, chief exec at the trade body, described the scale of these discounts as 'unsustainable'. Labour's decision to force EV owners to pay car tax for the first time from April has also dampened demand for new models - and triggered further manufacturer discounts. Both Vauxhall and Abarth - the performance division of Fiat - have recently reduced prices of their electric cars so that they sit below a £40,000 expensive car tax supplement being imposed on new EVs starting from next year. But Cox Automotive Europe discounts are now having a huge knock-on effect on the second-hand market, because 'nearly new' used EVs are falling in value as a direct result. Second-hand electric vehicle prices are also taking a hit from the huge acceleration in available models coming to market, with March seeing a record 69,313 new electric cars entering the road. A rapid development of battery technology is also stinging the value of quickly outdated older EVs, while the emergence of new cheaper brands - predominantly from China - is also pushing second-hand values lower. As such, a two-year-old electric car today is now holding just 53 per cent of its original price. In contrast, the average diesel car selling to trade with the same age profile is retaining 30 per cent of its new value. When second-hand EV values were at their peak in 2022 - as a result of supply constraints around the Covid-19 pandemic - a two-year-old electric car was losing only 17 per cent of its showroom price. Philip Nothard, insight director at Cox Automotive Europe, said: 'The current performance of nearly-new EVs in the used market is still much lower than we would anticipate for vehicles in this age profile. 'The heavy discounts offered on new vehicles mean that consumers can pick up a brand-new model for the same price as a nearly-new model. 'This gives consumers very little incentive to consider them, which is a real blow to a market that needs all the incentives it can get its hands on.' On the flipside, EVs between three to five years old are performing much better. At auction, these vehicles have seen only a modest price drop of 15 per cent on average in the same time period as they aren't impacted as severely by heavy manufacturer discounts and tend to attract a different driver. Last month, Prime Minister Sir Keir Starmer was forced to water down Britain's electric vehicle sales targets in response to Donald Trump's watershed tariff announcement. The PM's new measures included additional leniencies in the ZEV mandate in a bid to 'support car makers'. And only last week, a leaked letter from transport minister Lilian Greenwood revealed that the Government is considering dumping the expensive car supplement - widely being referred to as the 'Tesla Tax' - for new electric cars in an effort to stir up more demand for green vehicles. Nothard added: 'The used market is a crucial source of profitability for the automotive sector. 'Within increasingly volatile market conditions, the strength and consistency of used operations are crucial. 'To ensure this, more support for the used EV sector is needed to put the brakes on the rapid pace of depreciation.'
The Sun
6 days ago
- Automotive
- The Sun
Warning to EV drivers as cars' value PLUMMETS after just two years – are you set to lose thousands?
EV DRIVERS face losing thousands in the first two years of buying a car as manufacturers scramble to meet net zero targets, experts have warned. The average electric vehicle will reportedly retain just 49 per cent of its value after 24 months - a dramatic dip on the 83 per cent in 2022. 2 2 Diesel and petrol cars, in comparison, typically retain 70 per cent of their value, a whopping 20 per cent more than their supposedly higher-tech counterparts. This collapse in the second hand EV market has likely been triggered by a trend of mass-discounts applied by car markers trying to meet government net zero standards for EV sales. The governments "zero emission vehicle mandate" rules that 80% of new cars sales must be EVs by 2030, with the goal of 100% by 2035. If manufacturers fail to meet this target, they may be liable for a cash fined levied according to the number of vehicles short they are. The EV market is also being affected by a steep rise in competition, with cheaper models slashing the average price from nearly £40,000 down to less than £25,000 between 2022-2025, according to Autotrader. Philip Nothard, of Cox Automotive Europe, told the Telegraph that the price of EVs peaked in 2022 due to the pandemic putting pressure on global supply chains. However, Mr Nothard also said: "The current performance of nearly-new EVs in the used market is still much lower than we would anticipate for vehicles in this age profile. 'The heavy discounts offered on new vehicles mean that consumers can pick up a brand-new model for the same price as a nearly-new model. 'This gives consumers very little incentive to consider them, which is a real blow to a market that needs all the incentives it can get its hands on.' Mr Nothard added that "middle-aged" EVs, between three to five years old, were holding their value considerably better in recent years, only dipping 15% in resale price. Discounting of new EVs has seen £4 billion slashed from price tags last year, amounting to an average of £11,000 per vehicle, according to the Society of Motor Manufacturers and Traders. Although these tumbling prices are good for consumers, the rate of reductions has sparked concern in elements of the car industry. Fleet operators, such as car rental companies, are particularly vulnerable to these market changes. Accounting for two thirds of all new car sales, car rentals usually buy their vehicles new every few years, relying on the resale market to makeup some of these costs. With this market plummeting, companies are have to take deep cuts to profits when updating their fleets. In 2023, the EV leasing firm Onto fell into administration after it was forced to write down the value of its 7,000-car fleet by £21m that year. The British Vehicle Rental & Leasing Association (BVRLA) last year warned that many similar companies were experiencing heavy losses when reselling EVs because of this 'unsustainable' depreciation. Consumers may have to foot some of these rising costs in order for leasing companies to remain trading positively. The BVRLA has since made a plea to the government for intervention, calling for market stimulus measures to prop up faltering industries.
