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Jessica Caldwell, Edmunds' head of insights, is featured and shares how drivers expect -- and demand -- more amenities in their vehicles, which can quickly increase costs. Edmunds new and used vehicle average transaction price data is also featured in this segment.
Experts say now is the time to buy a new car
Across major automakers like Honda, Hyundai, and Ford, hybrid vehicles helped boost what otherwise was a lackluster month for the industry. Hybrid versions of Honda’s Accord and CR-V models, for example, recorded their best-ever January results. And though Ford’s battery-electric vehicle (BEV) sales fell from a year ago, hybrid sales leapt 42.7% YoY. Even if hybrids’ market share drops, it’s not for lack of demand—it’s that automakers “simply can’t make enough of them,” Ivan Drury, Edmunds’ director of insights, told Tech Brew.
EV leasing ticked down, but hybrids continued to have a moment in January
The IRS updated its electric vehicle tax credit rules as of Jan. 1, which makes it easier to see immediate savings on an EV purchase. "The big thing that changed is that you have the ability to take the credit at the point of sale, and you're essentially transferring it to the dealership and they're getting reimbursed," said Ronald Montoya, senior consumer advice editor at the automotive-focused site Edmunds. "It's like a discount on the vehicle, as opposed to waiting until your taxes come up and taking it there."
The EV Tax Credit Now Acts Like an Instant Rebate
Automotive experts who have tested Tesla's range estimates and found them inflated said the reduction of the estimates was a necessary change. Automotive website Edmunds said the vast majority of electric vehicles it has tested performed better than their advertised ranges - with Tesla being the exception. "All of the eight Tesla vehicles we have tested failed to match their EPA estimate," Edmunds editor-in-chief Alistair Weaver said in a statement. He called Tesla's reduced estimates "an important step in providing car shoppers with a more accurate reflection of how far their vehicle will travel on a single charge.”
Tesla lowers range estimates as U.S. regulators tighten vehicle-test rules
To assess charging speed, analysts at Edmunds recently tested dozens of vehicles in the US by charging them from 10% to 80% at high-speed chargers. They then determined how long, on average, it takes to add 100 miles of driving, based on the real-world driving efficiency for each vehicle. Results ranged from less than 7.5 minutes for the Hyundai Ioniq 6 to almost 35 minutes for the Chevy Bolt EUV.
These Are the Best Electric Cars for High-Mileage US Drivers
Subscriptions are shifting into overdrive in the auto industry. For certain Toyota vehicles, the remote start option comes at a price of $8 per month after the expiration of a free trial, while BMW charges $20 a month for enhanced cruise control on certain vehicles. Alistair Weaver, editor-in-chief at Edmunds, says automakers are counting on the new revenue stream to pay for the expensive transition to electric cars. "So if your car payment is 600 bucks a month, it's now $675," Weaver said. General Motors projects subscription fees to bring in as much as $25 billion a year by 2030. "Part of me says, 'Well, you've already bought the hardware...so just let me use it,'" Weaver said.
Auto industry eyes subscription fees as future multi-billion-dollar revenue stream
A new Edmunds EV charging test shows Hyundai, Kia, and Porsche electric cars top the list. In the “first independent measure of how quickly a car can add range to its battery,” Edmunds‘ new EV charging test establishes a new standard. The study shows the average miles per charging hour based on real-world testing and empirical data. In other words, you can see how many miles an EV can add in an hour of fast charging. The higher the miles per charging hour, the less time spent waiting.
Which EVs charge the fastest? Hyundai, Kia, and Porsche lead in new charging test
Thanks to growing competition in the market, and some reticence from consumers, automakers and car dealers are offering huge discounts on electric vehicles, particularly luxury models. The ranks of eager early adopters, those who feel they must have the latest technology in their vehicles, by now already own EVs, said Joseph Yoon, consumer insights analyst at Edmunds. In September 2022, the average electric vehicle purchased in the United States, excluding Teslas, went for about $1,500 over sticker price. One year later, the average EV went for about $2,000 under sticker price, according to data from Edmunds. That’s a much bigger change — and a much deeper discount — than for the industry overall, which averaged $900 under sticker last month, according to Edmunds.
Shopping for an EV? There are some big discounts right now | CNN Business
Interest rates average 7.4%, up 3 percentage points in just one quarter. High-interest rates plus still-high car prices mean the average monthly payment for a new car is the highest it’s ever been, at $736, according to Edmunds. The article offers expert consumer guidance on how to navigate the market in the current high-interest climate, including advice from Edmunds' consumer insights analyst Joseph Yoon: “Leasing gives you the flexibility to reevaluate the market in 2 to 4 years when interest rates may cool down."
Auto loans are super expensive. Here's how to shrink your monthly bill | CNN Business
The number of vehicles on dealer lots will shrink the longer the walkout goes on. Dealers are likely to lose incentives that the manufacturers pay them to boost sales by cutting prices. And consumers might make things worse with panic-buying. “Guys at the dealerships are going to tell you, ‘The UAW this and that,’ but their lots are full of cars now,” says Ivan Drury, the director of insights at Edmunds. He estimates that at current inventory levels and the pace of vehicle sales, most car shoppers shouldn’t notice much change for a couple of months. Vehicles from the Detroit Three sat in inventory an average 52 days before being sold in August, up from 31 days at the start of last year, according to Edmunds data.
The auto workers strike will drive up car prices, but not right away - unless consumers panic