Latest news with #CoxAutomotive
Miami Herald
15 hours ago
- Automotive
- Miami Herald
New Car Buyers Are Getting Trapped in This Scary Financial Situation
New cars are expensive. According to data from Kelley Blue Book and Cox Automotive, car prices are being kept steady, but the average new car in the U.S. still costs a whopping $48,799 in May 2025, a 2.1% increase from the same month in 2024. Despite this, it's easy to get tempted by the idea of a new car. It can be anything: either your current ride is giving you headaches, the new model for 2026 looks really cool, or your local dealer is offering a sweet financing deal on a 2025 model that can be shoehorned into your budget. However, for a disturbing number of Americans, these decisions leave them in a level of debt that would make Dave Ramsey and Caleb Hammer emotional and stuck in a hole that's getting even harder to climb out of. According to new data from car-buying authority Edmunds, the level of negative equity (when people owe more money on a car than its value) in new car purchases has reached a four-year high. They report that 26.6% of cars traded in towards new cars had negative equity in the second quarter of 2025, up from 26.1% in Q1 2025 and 23.9% in Q2 2024. When buyers trade in a car with negative equity, the amount people owe is usually rolled over or paid up front. Edmunds data shows that the average amount that buyers owed on cars with negative equity in Q2 2025 was $6,754, and over a third (32.6%) of underwater buyers carried between $5,000 and $10,000 in debt into their next car loan. Additionally, 23.4% of these buyers owed more than $10,000, and 7.7% owed more than $15,000. "Consumers being underwater on their car loans isn't a new trend, but the stakes are higher than ever in today's financial landscape," Edmunds director of insights Ivan Drury said in a statement. "Affordability pressures, from elevated vehicle prices to higher interest rates, are compounding the negative effects of decisions like trading in too early or rolling debt into a new loan, even if those choices may have felt manageable in years past." The rise of negative equity comes as buying a new car is tougher than ever. Car prices are still high, and interest rates are much higher than those of the COVID years in 2020 and 2021. Despite this, many consumers follow along, trading in their cars early and/or rolling existing debt into their next car without adjusting their budgets. As a result, in the second quarter of 2025, the average buyer who piled their negative equity on top of a new loan financed an additional $12,145 compared to the typical new car buyer. Additionally, they made average monthly payments of $915, compared to the typical new car buyer who paid $756. Figuring out if you have negative equity with your car loan is pretty simple. Start by checking how much your loan payoff amount is, which you can find in your monthly statements. Then, see what your car is worth right now on sites like Edmunds or Kelley Blue Book. If your loan payoff is more than what your car is worth, you have negative equity, and the difference between the two numbers is how much you're underwater. Joseph Yoon, a consumer insights analyst at Edmunds, advises, "In many cases, holding onto your current car and staying current on payments and maintenance may be the wisest choice." That said, if getting a new car feels right, then making the right decision about your shopping is crucial. He also says, "If a new vehicle is the right decision for you, doing your research is key. Choosing the right car for your needs and budget can save you more in the long run than any incentive the dealer or manufacturer may be offering. In today's market, smart shopping is your strongest defense." Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Yahoo
3 days ago
- Automotive
- Yahoo
Tesla has discussed building a smaller version of the Cybertruck, its engineering VP says
Tesla's Cybertruck has been a major sales disappointment since it launched in 2023. The "apocalypse-proof" truck is so big and heavy that it is very difficult to sell outside the US. Now, Tesla's engineering VP has said that the EV giant is considering building a smaller pickup truck. Elon Musk's "apocalypse-proof" Cybertruck has been a major disappointment, but it could be about to get a smaller sibling. Lars Moravy, Tesla's engineering VP, said in an interview on Saturday that the EV giant is considering making a smaller pickup truck, as sales of the beefy science-fiction-inspired Cybertruck continue to struggle. "We always talked about making a smaller pickup," said Moravy, in response to a question about whether Tesla needed a mini version of the Cybertruck for international markets. "I think in the future, as more and more of the robotaxi comes into the world, we look at those options and we think about, OK, that kind of service is useful not just for people, but also for goods," Moravy, who was speaking at an event hosted by Tesla owners and investors in California, added. "We've definitely been churning in the design studio about what we might do to serve that need for sure." Tesla did not immediately respond to a request for comment on Moravy's interview, which was sent outside regular US working hours. The Cybertruck was launched with a huge fanfare in 2023, with Tesla CEO Elon Musk predicting the automaker could sell over 250,000 of the "apocalypse-proof" trucks a year. However, those stratospheric sales have failed to materialize. Tesla has shifted around 11,000 Cybertrucks in the US so far this year, after selling nearly 39,000 over the whole of 2024, per data from Cox Automotive. The futuristic pickup launched in the US with a price tag close to $100,000, far above the $39,900 Elon Musk suggested back in 2019. The cheapest version now starts at over $60,000. The Cybertruck is also not available in China and Europe, Tesla's biggest markets outside the US. Both markets have strict vehicle regulations that make selling big and bulky pickups like the Cybertruck — which weighs over 6,000kg — extremely difficult. One of the first Cybertrucks to appear in the UK was seized by police earlier this year for not being road-legal, while another that was registered in the European Union had to be modified to soften the trapezoid truck's notoriously sharp edges. Tesla has expanded Cybertruck sales to Canada and Mexico, and in April announced it would begin selling the pickup in Saudi Arabia, the UAE and Qatar. The Cybertruck's slow sales and slower international expansion suggest it will be little help in turning around Tesla's sales slump. The EV giant said earlier this month that second-quarter sales had fallen 13.5%, its second year-over-year decline in a row. Read the original article on Business Insider Sign in to access your portfolio
Business Insider
3 days ago
- Automotive
- Business Insider
Tesla has discussed building a smaller version of the Cybertruck, its engineering VP says
Elon Musk's "apocalypse-proof" Cybertruck has been a major disappointment, but it could be about to get a smaller sibling. Lars Moravy, Tesla's engineering VP, said in an interview on Saturday that the EV giant is considering making a smaller pickup truck, as sales of the beefy science-fiction-inspired Cybertruck continue to struggle. "We always talked about making a smaller pickup," said Moravy, in response to a question about whether Tesla needed a mini version of the Cybertruck for international markets. "I think in the future, as more and more of the robotaxi comes into the world, we look at those options and we think about, OK, that kind of service is useful not just for people, but also for goods," Moravy, who was speaking at an event hosted by Tesla owners and investors in California, added. "We've definitely been churning in the design studio about what we might do to serve that need for sure." Tesla did not immediately respond to a request for comment on Moravy's interview, which was sent outside regular US working hours. The Cybertruck was launched with a huge fanfare in 2023, with Tesla CEO Elon Musk predicting the automaker could sell over 250,000 of the "apocalypse-proof" trucks a year. However, those stratospheric sales have failed to materialize. Tesla has shifted around 11,000 Cybertrucks in the US so far this year, after selling nearly 39,000 over the whole of 2024, per data from Cox Automotive. The futuristic pickup launched in the US with a price tag close to $100,000, far above the $39,900 Elon Musk suggested back in 2019. The cheapest version now starts at over $60,000. The Cybertruck is also not available in China and Europe, Tesla's biggest markets outside the US. Both markets have strict vehicle regulations that make selling big and bulky pickups like the Cybertruck — which weighs over 6,000kg — extremely difficult. One of the first Cybertrucks to appear in the UK was seized by police earlier this year for not being road-legal, while another that was registered in the European Union had to be modified to soften the trapezoid truck's notoriously sharp edges. Tesla has expanded Cybertruck sales to Canada and Mexico, and in April announced it would begin selling the pickup in Saudi Arabia, the UAE and Qatar. The Cybertruck's slow sales and slower international expansion suggest it will be little help in turning around Tesla's sales slump. The EV giant said earlier this month that second-quarter sales had fallen 13.5%, its second year-over-year decline in a row.
Yahoo
3 days ago
- Automotive
- Yahoo
EV Repairs Are Cheaper Than Gas Cars, but There's a Catch, Says Study
EV Repairs Are Cheaper Than Gas Cars, but There's a Catch, Says Study originally appeared on Autoblog. A rather surprising statistic According to data from Cox Automotive and Kelley Blue Book, sales of new electric vehicles (EVs) remain steady, even as sales during the second quarter of 2025 saw a 6.3% year-over-year dip. Overall, over 607,089 new EVs left dealer lots through the first half of 2025; a 1.5% increase year-over-year. These numbers show that new EVs are still joining the roads, which means that service departments will have more EVs to repair and maintain throughout their lifespans. However, according to a new EV Ownership Study published by CDK Global, most EV shoppers mistakenly believe EVs are more expensive to maintain. In reality, the dealer software specialists found that 53% of non-Tesla EV owners found it less expensive to service their electric car than a gas vehicle, while 41% of Tesla owners felt the same. However, while basic periodical maintenance like tires and oil changes is less frequent for electric vehicles (which is largely due to the fact that they don't have gas engines), 85% of EV owners said they had to return their vehicles to the service department for repair or maintenance within the first year of ownership. Though the study's statistics show that EV owners are taking advantage of dealer-offered services like pick-up and mobile services, CDK data revealed that it takes more time for dealers to fix an EV than the gas cars they usually fix. Per CDK, Tesla owners said they had to wait nearly 23% longer to get their cars back compared to a gas car, while non-Tesla owners reported they had to wait 34% longer. According to CDK data, most of these EV jobs take multiple days, which can burden those with tight schedules or busy lifestyles. Their data from 2023 shows that 40% of people who took their EV to get fixed had a same-day turnaround, but in 2024, that number dropped to just 28%. During the same time, the number of EV owners whose cars had to stay overnight at the shop went up from 21% to 29%. To make matters worse, CDK reported that 71% of Tesla owners said that their issues were resolved in just one visit, while just 65% of non-Tesla owners said the same. Among the non-Tesla owners who needed multiple visits to fix their issue, 52% said it took two visits, while 21% said they needed four or five visits back to the service department. 'We know dealers are prepared for EV service, but our most recent findings show EV owners are waiting longer to have their cars serviced, and it's taking multiple visits to have their issue resolved,' CDK director of content marketing and automotive industry analyst David Thomas said. 'The fact that these numbers are getting worse is not a good sign, as more non-Tesla EVs are on the road than ever before.' Final thoughts As someone who attended a vocational technical high school to train as an automotive technician, I can imagine the kind of additional training one would need to get certified for working on EVs, in addition to gasoline-powered cars. From what we know, Tesla has the advantage of having service centers that exclusively work on other Tesla EVs. However, as Tesla gives more of its market share to traditional automakers like General Motors, Ford, and even Hyundai and Honda, dealers and service departments that rely on routine maintenance jobs, such as tire, brake, and oil changes, must take on the additional task of servicing the EVs sold in their showrooms. Electric cars are still a relatively young industry compared to the petrol-powered brethren they compete against. Hopefully, these growing pains show traditional automakers that this sector is growing. EV Repairs Are Cheaper Than Gas Cars, but There's a Catch, Says Study first appeared on Autoblog on Jul 26, 2025 This story was originally reported by Autoblog on Jul 26, 2025, where it first appeared.
Fast Company
23-07-2025
- Automotive
- Fast Company
The cheapest new car on the market is about to go extinct
Just like the dodo and passenger pigeon before it, the affordable new car is about to go extinct as a species. The last new Mitsubishi Mirage model is expected to be sold by the end of this summer—and after that, there will be no new cars available for sale in the U.S. for less than $20,000. The Mirage is a fuel-efficient compact hatchback, and until it sells out, it is the cheapest new car on the market. In June it sold for an average transaction price of $18,484. [Photo: Mitsubishi] The Mirage was able to stay so cheap by offering the bare minimum. It's tiny. And while it has now-standard features like a touchscreen and rearview camera system, it doesn't have much else. In Car and Driver's review of the final 2024 Mitsubishi Mirage G4, the publication gave the car a 3/10 rating, noting that it was cheap to buy but cheaply made, with a puny engine and drab driving demeanor. 'Cheap? Yes. Cheerful? Not so much,' it said. This is a car that gets you from point A to point B. If you want to get there quickly, that's extra. You get what you pay for. Subscribe to the Design newsletter. The latest innovations in design brought to you every weekday Privacy Policy | Fast Company Newsletters [Photo: Mitsubishi] Mitsubishi said last year that it was ending production of the Mirage, and now there are only some 1,700 left, according to data from the car-services firm Cox Automotive. Based on the current sales pace, the firm predicts the last Mirage will be sold by summer's end. Buyers looking for the cheapest new car will then have to turn to the 2025 Nissan Versa S ($20,130) or 2025 Hyundai Venue SE ($21,695), per Inflation since the pandemic has hit the automotive industry especially hard, with the average transaction price for a new vehicle rising from about $40,000 in 2020 to nearly $49,000 in 2025, per Kelley Blue Book data. Tariffs imposed by the Trump administration have led to increased production costs, and while major automakers have yet to announce consumer-side price increases in response to new import duties, Doug Ostermann, CFO of Stellantis, said during a call on July 21 that he believes 'we're coming to the end of that period.' While the Mirage is no-frills, it offered buyers an ultracheap option for when cost was the most important decision-making factor. Without it, the average price of new cars will only continue to climb.
