Latest news with #vehicleprices
Forbes
6 days ago
- Automotive
- Forbes
Prices To Rise, Electric Vehicles To Struggle, BofA Auto Analyst Says
Vehicle prices will continue to increase amid tariffs and trade wars while electric vehicle demand is faltering, a Bank of America Securities auto analyst said Wednesday. 'Costs are going up and prices will have to go up for consumers,' John Murphy, the analyst, said at an Automotive Press Association event at a regional BofA office in Farmington Hills, Michigan. The presentation took place in connection with the financial company's annual Car Wars report. The auto industry is grappling with a trade war begun by President Donald Trump, who imposed tariffs on countries across multiple industries. Tariffs are paid by companies that import goods. Typically, that cost is passed along to consumers. Vehicle prices remain 'fairly high,' Murphy said, and tariffs will boost those prices more. Trump imposed a 25% tariff on imported vehicles and parts. 'In my judgment, it is necessary and appropriate to modify the system of monetary fees and related measures imposed to adjust imports of automobiles and certain automobile parts,' the president said in an April 29 statement. Murphy said his 'gut estimate' is the vehicle tariffs may eventually shake out to 5% to 10%. 'There is a lot of flailing between the U.S. and other countries,' the analyst said. In addition to higher prices, automakers are dealing with weaker-than-anticipated demand for electric vehicles. Companies such as General Motors Co. and Ford Motor Co. have invested heavily in EVs. Those investments don't show signs of paying off. The move to make more EVs occurred during the Biden administration, which promoted EVs as a way to reduce greenhouse gas emissions. The Trump administration is not an advocate of EV development. Murphy projected the number of EVs expected to be introduced will be cut in half over the next four years. 'It's kind of jaw dropping to see,' he said. 'The money has been spent,' Murphy added of EVs. 'You can't get it back.' Automakers may have to take 'multi-billion-dollar writedowns' of their EV investments, he said. 'The unprecedented EV head-fake has wreaked havoc on product plans," the BofA Car Wars report said. 'This has been driven by consumer disinterest and regulation/incentive changes. In addition, the recent tariff war is also complicating the equation.' As a result, 'Total product activity is at a crawl,' according to the report. 'OEMs are struggling with the powertrain conundrum, a new regulator/incentive regime, and uncertainty around tariffs.' BofA expects automakers such as GM, Ford and Stellantis will hold on to their traditional internal combustion engines, or ICE, powertrains longer. 'We think that automakers must lean heavily into their core ICE product portfolios to generate the capital to fund the uncertain future.' Other conclusions in the report include: --Demand for crossover vehicles, which have increased since the late 1990s, are topping out. That 'surge is done,' the report said. --The China auto market is struggling and could see 'a massive consolidation,' Murphy said. 'U.S. companies need to get out of China.'
Yahoo
25-05-2025
- Automotive
- Yahoo
5 Best Car Deals You Can Get This Memorial Day Weekend 2025
Big-ticket items like vehicles have certainly been on Americans' minds this spring, with the tariff turmoil and inflation fears circulating the economy. The Detroit Free Press reports that a surge in buying drove new vehicle prices up by 2.5% in April. Trending Now: Find Out: What's a car buyer to do? Fortunately, the tradition of Memorial Day car discounts remains alive and well in the U.S. Check out these auto deals in late May. Starting new price before discounts: $38,995 (Kelley Blue Book) To entice buyers, Chevrolet is currently offering 0% APR financing for 60 months, which they advertise will save you an average of $6,681. But Chevy doesn't stop there. 'Additionally, you're entitled to a $3,500 allowance when you trade in a 2011 or newer vehicle,' notes Melanie Musson, auto expert with Read More: Starting new price before discounts: $46,595 This Memorial Day weekend, Buick is offering 0.9% APR financing for well-qualified buyers, with no monthly payments for 90 days. New customers who don't currently drive a GM vehicle can score an additional $3,000 purchase allowance. 'This offer is available for both 2024 and 2025 models, but the 2024 models have a lower MSRP, for a deal that's hard to beat,' added Musson. Starting new price before discounts: $39,625 Defying tariff concerns, Volkswagen is offering a $2,000 cash discount on Atlases, or 2.9% APR financing for 60 months. You can't stack the two offers, unfortunately. Ruth Calkins, general manager at Findbyplate, said it's hard not to like this mid-size SUV. 'The 2025 Atlas combines a spacious interior, powerful engine and advanced safety features.' Hyundai Ioniq 5 starting new price before discounts: $43,975 Hyundai Ioniq 6 starting new price before discounts: $39,045 To juice its electric vehicle sales, Hyundai is offering $7,500 in retail bonus cash for its Ioniq 5 and Ioniq 6 models. Alternatively, you can select 2.99% APR financing for up to 72 months on the Ioniq 5. Even better, Hyundai is offering 0% APR financing for the Ioniq 6 for up to 48 months. Starting new price before discounts: $51,550 Nissan's luxury brand Infiniti is offering 1.9% financing for 60 months, plus a $1,000 cash bonus. Buyers may even be able to stack on a third discount. 'Right now, the company offers an extra $1,500 loyalty bonus for current Infiniti owners,' explains Alan Gelfand, auto expert with German Car Depot. If you need a new car, Memorial Day weekend might offer the best deals you're likely to see for a while — especially if tariffs do drive up the cost of cars in the U.S. Editor's note: Deals are accurate as of May 23, 2025, and are subject to change. Car prices and availability may vary by location. More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? 10 Unreliable SUVs To Stay Away From Buying Sources Detroit Free Press, 'Car-buying frenzy ahead of tariffs continues, pushing new vehicle prices higher.' Kelley Blue Book, '2025 Chevrolet Silverado 1500.' Chevrolet, 'Current Offers.' 'Melanie Musson.' Buick, 'Current Offers.' Volkswagen, 'Current Offers.' 'About Us.' Hyundai, 'Hyundai Deals and Special Offers.' Infiniti, 'Explore Current INFINITI Offers.' German Car Depot, 'German Auto Repair Shop For Over 30 Years.' This article originally appeared on 5 Best Car Deals You Can Get This Memorial Day Weekend 2025
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
Yahoo
18-05-2025
- 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
