Latest news with #JonathanSmoke
Yahoo
27-05-2025
- Automotive
- Yahoo
Get ready to pay even more for a used car this year
Cox Automotive says used vehicle supply hit the lowest level "since 2021 for this time of year." Prices are appreciating as inventory shrinks from the start of the year. Dealers cited heightened uncertainty amid White House tariffs. Used vehicles might not be the bargain they used to be. Trade and economic uncertainty are shrinking vehicle supply and pushing prices higher, data from Cox Automotive shows. At the start of May, dealers held a 43-day supply of vehicles, the lowest level "since 2021 for this time of year," Cox Automotive said. While that is better than what it was at the start of April — 40.5 days — supply has been getting tighter over the last 12 months. Used-car supply is even "more constrained at lower price points," fueling affordability challenges for buyers, Cox said. This embedded content is not available in your region. With fewer used vehicles to sell, prices are moving up. Even as the latest consumer price index report highlighted a 0.5% decline in used cars and trucks prices in April from March, Cox Automotive observed the opposite: steady price gains for both wholesale and retail markets. President Donald Trump's tariff policies in general haven't been reflected much in CPI data just yet. Still, in response to those tariff announcements, manufacturers like Ford Motor have announced coming price increases. Among used vehicles, the top 50 US bestsellers have now appreciated to an average of nearly $29,000 over the past two months, The Wall Street Journal reported, citing Cox Automotive data. Part of this results from a spike in sales, as consumers rushed to acquire a vehicle in anticipation of tariffs' impact. That's according to dealers referenced in a recent Cox Automotive sentiment survey, many of whom pointed to White House tariffs as a near-term industry boost. "The recent sales pace has been a positive, lifting current market sentiment higher for franchised dealers," Jonathan Smoke, the chief economist at Cox Automotive, said in a press release. "But as we've said before, 2025 is going to be a roller coaster for this industry, and the market could be a lot more hair-raising in the months ahead." In the second quarter, franchised dealers saw in-person visits surge to the highest level since data recording began in late 2022. Census Bureau data showed sales at motor vehicle and parts dealers were high in March and April. But Washington's protectionist policy is also injecting a wave of doubt about what's to come next. "Cost to obtain inventory is higher. Transporting sold cars is way up. Seems most third-party vendors have had steady price increases," said an Audi Dealer quoted in the Cox survey. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
27-05-2025
- Automotive
- Business Insider
Get ready to pay even more for a used car this year
Used vehicles might not be the bargain they used to be. Trade and economic uncertainty are shrinking vehicle supply and pushing prices higher, data from Cox Automotive shows. At the start of May, dealers held a 43-day supply of vehicles, the lowest level "since 2021 for this time of year," Cox Automotive said. While that is better than what it was at the start of April — 40.5 days — supply has been getting tighter over the last 12 months. Used-car supply is even "more constrained at lower price points," fueling affordability challenges for buyers, Cox said. With fewer used vehicles to sell, prices are moving up. Even as the latest consumer price index report highlighted a 0.5% decline in used cars and trucks prices in April from March, Cox Automotive observed the opposite: steady price gains for both wholesale and retail markets. President Donald Trump's tariff policies in general haven't been reflected much in CPI data just yet. Still, in response to those tariff announcements, manufacturers like Ford Motor have announced coming price increases. Among used vehicles, the top 50 US bestsellers have now appreciated to an average of nearly $29,000 over the past two months, The Wall Street Journal reported, citing Cox Automotive data. Part of this results from a spike in sales, as consumers rushed to acquire a vehicle in anticipation of tariffs' impact. That's according to dealers referenced in a recent Cox Automotive sentiment survey, many of whom pointed to White House tariffs as a near-term industry boost. "The recent sales pace has been a positive, lifting current market sentiment higher for franchised dealers," Jonathan Smoke, the chief economist at Cox Automotive, said in a press release. "But as we've said before, 2025 is going to be a roller coaster for this industry, and the market could be a lot more hair-raising in the months ahead." In the second quarter, franchised dealers saw in-person visits surge to the highest level since data recording began in late 2022. Census Bureau data showed sales at motor vehicle and parts dealers were high in March and April. But Washington's protectionist policy is also injecting a wave of doubt about what's to come next. "Cost to obtain inventory is higher. Transporting sold cars is way up. Seems most third-party vendors have had steady price increases," said an Audi Dealer quoted in the Cox survey.
Epoch Times
19-05-2025
- Automotive
- Epoch Times
New Vehicle Inventory in April Declines, Affordability Worsens: Cox Automotive Analysis
Inventory of new vehicles decreased in April by 7.4 percent month over month and was down by 10.5 percent from last year, according to automotive services company Cox Automotive. Inventories are 'not being replenished at the same rate of sales,' the company said in a May 15 'Some automakers are likely holding the line on deliveries and production, as everyone struggles with the uncertainty surrounding the administration's tariff policies. 'As automakers prepare to bring 2026 model year vehicles to showrooms and introduce post-tariff-announcement pricing, inventory is expected to rise, but higher prices may further slow the pace of sales.' While inventory tightens, Cox noted a 'sharp decline' in new vehicle affordability amid rising prices. At the end of April, the average listing price of a new vehicle stood at $48,656, up $774 from the beginning of the month and higher by $1,318 from a year back. In addition, the estimated average auto loan rate went up by four basis points for the month. Related Stories 5/18/2025 5/12/2025 The average monthly payment in April increased by 3 percent to $753, which Cox said was the highest monthly payment since December. 'New-vehicle affordability declined in April to the worst level yet this year as the bite of higher prices and lower incentives turned around an improving trend,' said Cox Automotive Chief Economist Jonathan Smoke. 'After steady improvements in affordability throughout 2025, we saw a significant setback in April with median weeks of income needed to buy an average new vehicle increasing by a full week.' The Trump administration has imposed a 25 percent iff on foreign auto imports. President Donald Trump signed an executive order on April 29 that provides relief for automakers. The order is aimed at preventing automakers from being subject to overlapping duties. As such, while they will pay 25 percent for foreign auto imports, other duties such as the 25 percent tariff on steel or aluminum won't be applied, to prevent multiple charges from being stacked together. 'This is designed to allow all of the domestic auto manufacturers to grow their plants, to grow new employment, and to build more factories in America,' a Commerce Department official told reporters. In an April 29 'Applying multiple tariffs to the same product or part was a significant concern for American Automakers, and we are glad to see this addressed,' said Matt Blunt, president of the group. Boosting Domestic Production In an April 29 While foreign auto industries have expanded due to aggressive industrial policies and unfair subsidies provided by their home nations, production in America has fallen, it said. 'In 1985, American-owned facilities in the United States manufactured 11.0 million automobiles, representing 97 percent of overall domestic (American- and foreign-owned) production of automobiles,' the fact sheet reads. 'In 2024, Americans bought approximately 16 million cars, SUVs, and light trucks, and 50 percent of these vehicles were imports (8 million).' Tariffs are expected to help the American auto manufacturing sector recover. Meanwhile, several auto companies have announced investments in the United States. In March, Hyundai Executive Chairman Chung Eui-sun announced a $20 billion investment in the country. Last month, Honda Motor Co. said it would shift the production of its five-door Civic hybrid model vehicle from Japan to Indiana. On May 1, Mercedes-Benz announced it plans to localize a new vehicle in Tuscaloosa, Alabama. 'It's a natural step to bring a further model to Alabama as part of a strategy to deepen our commitment to the United States, a market, which has been our home for more than a century,' said Ola Kallenius, chairman of the company's board of management.
Yahoo
19-05-2025
- Automotive
- Yahoo
Car-buying frenzy ahead of tariffs continues, pushing new vehicle prices higher
As car buyers rush to get in front of tariffs — which are widely expected to boost sticker prices — the flood of demand has been pushing new vehicle prices ever higher, with the trend unlikely to stop any time soon, experts said. In Cox Automotive's Auto Market Report published May 13, Chief Economist Jonathan Smoke said the trend of rising prices continues into May. 'May so far looks like a continuation of April, with urgency to buy diminishing, but the retail vehicle market and the U.S. economy both holding up relatively well," Smoke said. The job market is "good enough so far," but hiring is slowing, Smoke said, noting that borrowing money to buy a car is getting more expensive. He said the number of low-interest rate deals has decreased by 7 percentage points year-over-year, with interest-free loans also declining. Smoke's remarks come on the heels of a report from Cox Automotive's Kelley Blue Book published May 12 showed the average transaction price for new vehicles in April surged 2.5% to $48,699 compared with March. Prices rose 1.1% compared with April 2024. Cox said it was the strongest April sales since 2021. The buying frenzy meant automakers did not have to offer big discounts. Cox said new-vehicle sales incentives fell to about $3,262, or 6.7% of the average transaction price. That's down from 7% of the average transaction price in March. Cox said incentives were at the lowest point since the summer of 2024. Prior to April, the six-month average was 7.4% of average transaction price. On April 3, President Donald Trump put a 25% tariff — the tax an importer pays on a good when it crosses international borders — on all imported vehicles to encourage more U.S. manufacturing. Trump was set to then enact 25% tariffs on all imported parts starting May 3. But on April 29, the administration modified the tariffs on foreign auto parts. In a complex formula, the executive orders Trump signed will now allow automakers to be reimbursed for some of those tariffs for the next two years to give them time to find domestically sourced parts. Still, a Michigan economics group, calculating tariff impact, has estimated that the least-impacted vehicles will still face a $2,000 tariff-induced price hike and the most impacted will see a $15,000 impact. Cox Executive Analyst Erin Keating explained that new car prices are rising on the heavy demand to get the goods before manufacturer's suggested retail prices go sky high to offset carmaker's tariffs costs. More: Trump tariffs will slow Michigan growth, kill 13,000 auto-related jobs, experts predict 'Ever since President Trump announced auto tariffs 47 days ago, the cost of new cars has been steadily climbing," Keating said. "Even though there was a surge in shopping and sales early on, the manufacturer's suggested retail prices haven't budged. The pricing landscape is varied depending on the automaker, car segment and specific models — some are cutting incentives, others are in high demand, and the supply isn't evenly distributed across the board.' Ford Motor Co. has been running a national employee-pricing program that started in early April and runs through July 6. The Dearborn-based automaker is relying on a message of 'holding prices steady' and touting its 'built in America' leadership. Cox said Ford brand prices and incentives in April were mostly unchanged from March with one standout: The Maverick pickup, which Ford assembles in Mexico, saw lower prices in April. Ford's incentive spending on the Maverick increased to an all-time high of 6.6% of average transaction prices on record monthly sales of 20,183 Mavericks sold in April, Cox said. More: Tariffs call USMCA's future into question, experts say In early May, Ford said it is hiking prices on three of its Mexico-produced models effective May 2, becoming one of the first major automakers to adjust sticker prices in response to tariffs. Prices on the Mustang Mach-E all-electric SUV, Maverick and Bronco Sport will increase by as much as $2,000 on some models. At General Motors, Cadillac, Chevrolet and GMC brands all posted higher average transaction prices in April compared with March, with little change to incentives, Cox reported. Buick, however, saw lower prices and higher incentives in April. Import brands Acura and BMW also held prices lower and increased incentive spending last month compared with March. In the ultraluxury segment, sales of Porsche and Land Rover models accelerated in April because both brands will face higher future costs given 100% of their vehicles are imported, Cox noted. The average transaction price for Porsche led the industry in April at above $114,000, with Land Rover just behind at $113,000. April was the best sales month this year for both brands, pushing the overall industry average transaction price higher. Car buyers even flocked to all-electric vehicles last month. The Kelley Blue Book team initially estimates new EV prices in April to be $59,255, a 3.7% increase from the year-ago period and a 0.2% increase compared with March. Cox said the March EV average transaction price was revised lower to $59,132. Jamie L. LaReau is the senior autos writer who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at jlareau@ Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber. This article originally appeared on Detroit Free Press: Car-buying frenzy ahead of tariffs continues, pushing prices higher
Yahoo
19-05-2025
- Automotive
- Yahoo
Car-buying frenzy continues, pushing new vehicle prices higher
As car buyers rush to get in front of tariffs — which are widely expected to boost sticker prices — the flood of demand has been pushing new vehicle prices ever higher, with the trend unlikely to stop any time soon, experts said. In Cox Automotive's Auto Market Report published May 13, Chief Economist Jonathan Smoke said the trend of rising prices continues into May. 'May so far looks like a continuation of April, with urgency to buy diminishing, but the retail vehicle market and the U.S. economy both holding up relatively well," Smoke said. The job market is "good enough so far," but hiring is slowing, Smoke said, noting that borrowing money to buy a car is getting more expensive. He said the number of low-interest rate deals has decreased by 7 percentage points year-over-year, with interest-free loans also declining. Smoke's remarks come on the heels of a report from Cox Automotive's Kelley Blue Book published May 12 showed the average transaction price for new vehicles in April surged 2.5% to $48,699 compared with March. Prices rose 1.1% compared with April 2024. Cox said it was the strongest April sales since 2021. The buying frenzy meant automakers did not have to offer big discounts. Cox said new-vehicle sales incentives fell to about $3,262, or 6.7% of the average transaction price. That's down from 7% of the average transaction price in March. Cox said incentives were at the lowest point since the summer of 2024. Prior to April, the six-month average was 7.4% of average transaction price. On April 3, President Donald Trump put a 25% tariff — the tax an importer pays on a good when it crosses international borders — on all imported vehicles to encourage more U.S. manufacturing. Trump was set to then enact 25% tariffs on all imported parts starting May 3. But on April 29, the administration modified the tariffs on foreign auto parts. In a complex formula, the executive orders Trump signed will now allow automakers to be reimbursed for some of those tariffs for the next two years to give them time to find domestically sourced parts. Still, a Michigan economics group, calculating tariff impact, has estimated that the least-impacted vehicles will still face a $2,000 tariff-induced price hike and the most impacted will see a $15,000 impact. Cox Executive Analyst Erin Keating explained that new car prices are rising on the heavy demand to get the goods before manufacturers' suggested retail prices go sky high to offset carmaker's tariffs costs. More: Trump tariffs will slow Michigan growth, kill 13,000 auto-related jobs, experts predict 'Ever since President Trump announced auto tariffs 47 days ago, the cost of new cars has been steadily climbing," Keating said. "Even though there was a surge in shopping and sales early on, the manufacturer's suggested retail prices haven't budged. The pricing landscape is varied depending on the automaker, car segment and specific models — some are cutting incentives, others are in high demand, and the supply isn't evenly distributed across the board.' Ford Motor Co. has been running a national employee-pricing program that started in early April and runs through July 6. The Dearborn-based automaker is relying on a message of 'holding prices steady' and touting its 'built in America' leadership. Cox said Ford brand prices and incentives in April were mostly unchanged from March with one standout: The Maverick pickup, which Ford assembles in Mexico, saw lower prices in April. Ford's incentive spending on the Maverick increased to an all-time high of 6.6% of average transaction prices on record monthly sales of 20,183 Mavericks sold in April, Cox said. More: Tariffs call USMCA's future into question, experts say In early May, Ford said it is hiking prices on three of its Mexico-produced models effective May 2, becoming one of the first major automakers to adjust sticker prices in response to tariffs. Prices on the Mustang Mach-E all-electric SUV, Maverick and Bronco Sport will increase by as much as $2,000 on some models. At General Motors, Cadillac, Chevrolet and GMC brands all posted higher average transaction prices in April compared with March, with little change to incentives, Cox reported. Buick, however, saw lower prices and higher incentives in April. Import brands Acura and BMW also held prices lower and increased incentive spending last month compared with March. In the ultraluxury segment, sales of Porsche and Land Rover models accelerated in April because both brands will face higher future costs given 100% of their vehicles are imported, Cox noted. The average transaction price for Porsche led the industry in April at above $114,000, with Land Rover just behind at $113,000. April was the best sales month this year for both brands, pushing the overall industry average transaction price higher. Car buyers even flocked to all-electric vehicles last month. The Kelley Blue Book team initially estimates new EV prices in April to be $59,255, a 3.7% increase from the year-ago period and a 0.2% increase compared with March. Cox said the March EV average transaction price was revised lower to $59,132. Jamie L. LaReau is the senior autos writer who covers Ford Motor Co. for the Detroit Free Press. Contact Jamie at jlareau@ Follow her on Twitter @jlareauan. To sign up for our autos newsletter. Become a subscriber. This article originally appeared on Detroit Free Press: Car prices surge as buyers rush to get in front of tariffs Sign in to access your portfolio
