Latest news with #carbuyers
Forbes
4 days ago
- Automotive
- Forbes
How Hot Hues And Cold Colors Affect A Car's Resale Value, Study Says
Looking at virtually any parking lot in the nation these days is something akin to seeing at a black-and-white photo of cars, trucks and SUVs. That's because a whopping 81% of the top selling vehicle colors are not the least bit colorful, according to but are rather variations of white (25%), black (22%), gray (20%) and silver (14%). Monochrome is certainly the name of the game when it comes to new vehicle shoppers' tastes these days, with only slim margins sold in expressive hues like orange (0.3%), purple (0.09%) or yellow (0.08%). Even stalwarts like blue and red are now relegated to niche status, at just 9% and 7.5%, respectively of all models sold. Some consumers are likely choosing their cars' colors to emphasize timeliness, as more vivid hues tend to come and go more quickly out of fashion. Others tend to be conservative both in life and in their transportation choices. A lot may have to do with those being the only colors for a given model on a dealer's lot. And many reportedly choose 50 shades of grey, et. al. as a way to help bolster their rides'' resale values at trade-in time. While the latter seems like an entirely logical choice for what amounts to a major financial investment, the data suggests that choosing a more brilliant color can actually help bolster a ride's resale value. The statisticians at the online automotive marketplace conducted a study of over 1.2 million listings to determine how different colors impact a vehicle's depreciation, and found that it usually pays to go wild. Though they're relatively uncommon in today's monochromatic new vehicle lots, the study determined that yellow cars lose the least value over the course of three years, at an average 24.0% or a $13,667 drop over their original sticker prices. That's 6% better than the national average for all colors at a 30% loss, which translates into a $14,360 dive overall. At that, the study found that what many would consider to be 'safe' choices from an automaker's color palette actually turn out to be among the worst performers in this regard, with black and white dropping 31.9% and 32.1% of their original sticker prices after three years, respectively. The law of supply and demand would suggest their sheer commonality has something to do with their low resale prices, which converse makes them better values in the pre-owned market. 'We see far more black, white and silver vehicles, which suggests they're the most popular car colors, but our data confirms there are more than enough of those colors to meet demand,' says iSeeCars Executive Analyst Karl Brauer. 'For new car buyers seeking strong resale value, more obscure colors like yellow, orange and green will provide higher pricing when it's time to sell.' The worst performer overall is gold, a dubious hue few would choose regardless of its resale value, at 34.4% average depreciation. We're presenting iSeeCars' spectrum of three-year value losses below. Among separate vehicular segments, the pickup truck colors that depreciate the least over a 36-month period are orange (-16%) and green (-19.6%). Buyers were found to lose the most money if they owned either a truck painted beige (understandable at -28.7%) and red (curiously at -28.8%). SUV shoppers may want to consider a model that's likewise wrapped in orange (-27.1%) or green (-28.8%) to return the most cash at trade-in time, versus brown (another no-brainer at -33.4) or black (surprisingly at -33.6%). Sedans follow the trend with orange (-25.3%) and yellow (-25.4%) delivering the goods instead of green (-33.8%) and gold (hardly golden at -37.9%). On the other hand, green tops the list for minivans at just -15.3%, versus the least-lucrative color, white at a substantial -43.9% plummet. And as one might imagine, coupes and convertibles, already among the most expressive rides on the road, flourish in value when ordered in bright yellow or orange, and wither when painted black, white or silver. The complete report can be found here. These are the pigments iSeeCars found that ate most likely to either decelerate or accelerate a vehicle's rate of depreciation, with the average percentages and dollar amounts of values lost over a three-year period for each: Average: -31.0% and $14,360 off MSRP Source: based on a survey of over 1.2 million model-year-2022 used-car listings from August 2024 through May 2025.
The Drive
7 days ago
- Automotive
- The Drive
The Pandemic Supply Crisis Has Caught Up to the Used Car Market
The latest car news, reviews, and features. Peak pandemic was chaos, and it's back to haunt us. According to a new report, the chip shortage that destabilized the automotive market and the car-buying public is rearing its ugly head again. That's because the low volume of new cars available at the time has become a low volume of used cars today, which is driving prices back up. Although manufacturing caught up in the post-pandemic years, leading to used car prices stabilizing and even decreasing, the lean years during which there weren't enough semiconductor chips to go around have created an inventory of slim pickings for the gently-used car market. Referencing sales data collected by the Detroit Free Press says that 3-year-old used cars are selling at a rate that closes the gap between new cars to just $17,000. For the first time in the post-Covid era, the average transaction price (ATP) of used vehicles circa 2022 and later is more than 30 grand. In the first quarter of 2025, the ATP is $30,522, which is a 2.3% year-over-year increase. Additionally, used cars are sitting on lots for a longer period of time. Vehicles are hanging around for an average of 38 days, which is four days longer than the same time last year. Even though dealer stocks are low, consumers simply aren't willing to pay the price. However, waiting things out might be the wrong move. Tariffs are due to shrink new car inventory much in the same way the chip shortage did, leading to, you guessed it, a Groundhog Day of high prices, high demand, and no products. The Edmunds report notes that 'spillover demand could once again inflate values of used vehicles, particularly for near-new models.' 'We're repeating this cycle over and over,' said Edmunds Director of Insights Ivan Drury in an interview with the Free Press . 'Not only has it just outright reduced volume, but leasing penetration rates took a dump. They were like the lowest we had seen in 10 years.' Just as vehicle production dropped significantly in 2022 and 2023, leases were also down. Normally a steady source of additional used-car inventory, the number of vehicles coming off leases is not stellar. Trade-ins are also slightly older, up 0.3 to an average of 7.6 years in age. American-made vehicles will not offer the cost savings some might be looking for, either. That's because most of the vehicles assembled in the United States are already expensive to begin with, ergo SUVs and trucks. The annual American-Made Index put together by listed two sedans and a minivan in its latest 2024 top 10, while five SUVs and two trucks completed the list. So, American-made also means the highest average price. In this case, that figure is $53,000 versus the overall new car market average of $49,000. If there's a silver lining, it's in the pockets of those offloading their cars. Lessees could see a higher payout, and those trading in a vehicle might be offered more value. But if you're looking to buy, regardless of whether the vehicle is new or used, you're kinda screwed. When asked for a recommendation as to the best time to buy a vehicle, Drury told the Free Press : 'I'd say that was yesterday.' Got tips? Send 'em to tips@ Beverly Braga has enjoyed an eventful career as a Swiss Army knife, having held roles as an after-school teacher, film critic, PR manager, transcriber, and video producer – to name a few. She is currently a communications consultant and freelance writer whose work has appeared in numerous outlets covering automotive, entertainment, lifestyle, and food & beverage. Beverly grew up in Hawaii but roots for Washington, D.C., sports teams.
Yahoo
14-05-2025
- Automotive
- Yahoo
How to trade in your car: 5 simple steps
Trading in your car can make selling your vehicle and buying a new one go much quicker. The trade-in value of your car is negotiable. Know what your vehicle is worth, but understand that trade-ins are likely to net less money than a private sale. Shop around to find a dealer that offers a good deal on your trade-in and a fair price on your new vehicle. When buying a new car, it can be helpful to have a vehicle you already own that you can trade in. A trade-in gives you a head start on your down payment — and you don't have to trade in your old car at the same dealership you plan to buy from. Trading in your car also eliminates much of the work of selling a vehicle, allowing you to cruise home in your new ride much quicker than you would if you had to sell your car yourself. Just be prepared to research how much your car is worth and negotiate once you visit the dealership. Doing your research can help you better understand how to trade in your car so you can maximize the amount your trade-in earns. Before you can trade in your vehicle, learn how to calculate your car's value. Knowing this figure in advance may help you feel empowered when it comes time to negotiate and can also increase your chances of getting a fair price. Rather than waiting to find out what the dealer thinks, do some research to get a sense of your current car's value. Free online appraisal tools, such as Kelley Blue Book or Edmunds, can help you determine the worth of your car. If available, use estimator tools that can offer a deeper sense of the dollars your car will command based on car features beyond make, model, year and mileage. External factors may also impact the value of your vehicle. If gas prices are high, as they are now, a car that gets better gas mileage might be more in demand than an oversize truck. Trading in a car involves more than assessing the vehicle. You'll also need to evaluate the state of your finances to know how much car you can afford on the other side of the trade. You may also want to compare top lenders to get a firm idea of the loans you qualify for — and how your trade-in could potentially increase your buying power. If you are trading in a car with a loan, determine if its trade-in value will be enough to pay off the remaining balance. Contact your lender to confirm the payoff amount and compare that figure to your car's trade-in value by visiting multiple dealers to request trade-in quotes. Remember, if a dealer offers to pay your loan off for you, you will likely add the payoff amount to a new loan for your next vehicle. This is called rolling over your auto loan and can lead to difficult financial situations in the future. You don't have to go to the dealer to start the trade-in process. Instead, you can make dealers come to you with a price. Many online value estimators, such as Kelley Blue Book and TrueCar, are linked to dealers that will extend offers based on the information you share about your car. You can then use these online quotes to negotiate with dealerships and secure the best possible deal. When you're ready to negotiate, remember that you don't have to sell your trade-in and buy your new car at the same dealership. Negotiate the trade-in price separately from the purchase price of your next car. You could trade your car in at one dealership and then purchase a car from another to maximize your savings. Remember, you don't have to accept the initial trade-in amount a dealer suggests. Dealers typically begin by offering the lowest price possible, so you can negotiate your car's trade-in value. Tell the dealer the price seems too low based on offers from other dealers or the value you've found in your research. Provided you have been keeping up with regular car maintenance costs, you should receive a better price on your trade-in. Take the extra time to clean the interior and exterior of your car to help boost your car's trade-in value. 'Make sure your car is clean, and you're presenting it as you would want to receive it if you were buying it,' says Alain Nana-Sinkam, Chief Industry Analyst at TrueCar. 'Also, if there were small flaws you had planned to fix prior to the trade, make sure to get them done so the car is delivered to the dealer as you had reported and as they are expecting it.' What do you need to trade in a car? Be sure to have any service records and the vehicle registration, car title and all keys on hand. If you don't have the title because you're trading in a car with a loan, have the lender's details ready as well. Car dealerships can be busy places, so make an appointment in advance to save yourself time. The dealer will evaluate your car to verify that all the information you submitted online is correct. 'Ask if you can be present with the appraiser so that you can ask them questions about how they are determining the value of your vehicle,' says Joe McCloskey, owner of McCloskey Motors in Colorado Springs, Colorado. 'Most dealerships will share this information with you, and having this information will help you to better understand how and why the dealer is valuing your vehicle's value.' With your research and documentation on hand, be prepared to negotiate — and walk away if the dealership isn't able to offer you a good deal. There's nothing wrong with shopping for quotes at multiple dealerships to get the best value for your trade-in. After you determine how to trade in your car and the value it has, make sure you understand the benefits and drawbacks of selling the vehicle before you visit any dealerships. The trade-in process may save you the stress and hassle of posting your car online and going through the process of a private sale. There may be a tax credit for your trade-in, depending on your location. In some states, you will only be charged tax on the difference between your old car's trade-in value and the price of your new vehicle. It simplifies the shopping process. You can buy and sell in one place, using your old vehicle's trade-in value as equity toward your new car. Your profit will likely be smaller than it may have been by selling the vehicle yourself. If you want to find a dealer that can source your new car and is also willing to buy your old one, your options may be more limited. You could lose money if you are upside-down on your loan. If you need to trade in your car with negative equity, consider purchasing a less expensive vehicle to help minimize your losses. Knowing how to trade in a car rather than selling it yourself can streamline the process of getting into a new vehicle. To maximize your trade-in's value, start by researching the value of your car with free online car estimators. Before heading to a dealer, deep clean your car and make cost-effective minor repairs. It's also a good idea to obtain offers from multiple dealers, and remember that you can negotiate the trade-in price. In addition to shopping for the best value for your trade-in, make sure you compare auto loan rates so you know exactly how much your next car will cost you. How do you trade in a car that's not paid off? Most lenders allow you to roll the outstanding balance into your new auto loan, or you can pay out-of-pocket before trading the vehicle. If you have positive equity, the trade-in value should cover the outstanding balance, and the difference will be applied to the new loan. What are the alternatives to trading in a car? If you're upside-down on your auto loan or prefer to explore other options, consider a private sale or an online dealership. Both allow you to skip the trade-in process and instead walk away with cash for your next vehicle — provided you don't owe money on a loan. Is trading in a car worth it? Trading in a car can be worth it if you want a seamless car-buying experience. The dealership can assess your vehicle's value on the spot and present you with an offer, saving you time and money you'd otherwise spend preparing your car for a private sale and attracting the right buyer. Is it better to sell or trade in your car? It depends. If your vehicle has a sufficient amount of equity, trading it in could help streamline your next purchase and decrease the amount you have to borrow. That said, if you're upside-down on your auto loan, consider a private sale first, as you'll likely earn more to minimize the impact of the negative equity. Does trading in a car affect your credit? No, trading in your vehicle does not impact your credit score. However, applying for a new auto loan results in a hard inquiry, which can ding your credit score by a few points. Sign in to access your portfolio
Reuters
13-05-2025
- Automotive
- Reuters
US consumer watchdog cancels Toyota settlement early
May 13 (Reuters) - The U.S. Consumer Financial Protection Bureau has canceled a 2023 settlement with the financing arm of Toyota (7203.T), opens new tab over allegations the auto giant illegally steered thousands of consumers into costly and unwanted product bundles, according to documents published by the agency. The CFPB also specifically waived requirements that Toyota Motor Credit Corp ( pay tens of millions of dollars in refunds and redress to allegedly harmed consumers, according to an order. The agency did not immediately respond to a request for comment, and the order dated Monday did not provide a reason for the decision. However, Toyota said it welcomed the CFPB's action and was committed to "doing the right things" for Toyota buyers. "We will continue to enhance our practices to deliver the best possible customer experiences," the company said in a statement. In 2023, the CFPB ordered Toyota to pay a $12 million penalty and $48 million to car buyers who had been harmed since 2016. According to the CFPB, thousands of borrowers complained that dealers lied about whether "add-on" products offering protection for things such as damage, theft or out-of-warranty coverage were mandatory, or that Toyota rushed the paperwork so buyers would not realize how much they were paying. The regulator said Toyota Motor Credit made it "extremely cumbersome" to cancel the bundles, including by routing more than 118,000 borrowers to a hotline where agents were instructed to dissuade cancellations, and often failed to provide refunds. The 2023 settlement had been due to last five years.
Bloomberg
13-05-2025
- Automotive
- Bloomberg
GOP Tax Bill Prioritizes Trump Campaign Vows, Increases SALT
President Donald Trump's campaign tax pledges — no taxes on tips and overtime pay, plus new tax breaks for car buyers and seniors — are the centerpiece of a multitrillion dollar package that will serve as Republicans' signature legislative effort. In a draft version of the tax bill released on Monday, House Republicans highlighted the president's populist priorities in a package that would enact those cuts through 2028. The bill would also make the lower individual tax rates Trump signed in 2017 permanent.
