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Across the industry, auto analysts say, an “affordability shift” is taking root. The trend is being led by people who feel they can no longer afford a new vehicle that would cost them roughly today’s average selling price of more than $47,000 — a jump of more than 20% from the pre-pandemic average. To buy a new car at that price, an average buyer would have to spend $737 a month, if financed at today’s average loan rate of 7.1%, for just under six years before the vehicle would be paid off, according to Edmunds.com, an auto research and pricing site. For many, that is financially out of reach.
Lower-priced new cars are gaining popularity, and not just for cash-poor buyers
More Americans are upside down on their car loans, and the average amount they owe is at an all-time high, according to a new survey from car comparison site Edmunds. In the three months ended in September, 24.2% of Americans who traded in their car toward a new vehicle purchase owed more on the trade-in than it was worth, which is considered "upside down" or "underwater," Edmunds said. That’s up from 23.9% in the prior three months and 18.5% a year ago. Additionally, the amount they owed on those trade-ins climbed to a record high of $6,458, with 22% owing at least $10,000 and 7.5% owing $15,000 or more, it said.
So you're upside down on your car loan. You're not alone.
What’s in a name? Alison Anziska, Edmunds’ senior vice president of marketing, answers that question in an episode of the Auto Remarketing Podcast about a new advertising campaign featuring athletes bearing a similar name to the company. Anziska talks with Cherokee Media Group senior editor Joe Overby about the serendipitous online search activity that inspired the campaign, how humor can help brands connect with consumers, the overlap of Edmunds’ audience/engagement with sports and much more.
PODCAST: Edmunds plays the name game in sports-themed campaign
Online car-shopping guide Edmunds launched a new sports-themed social media advertising campaign to boost brand awareness and help retailers sell more cars. "As we build audiences for Edmunds, we're building audiences for our partners as well," Alison Steinlauf Anziska, Edmunds' senior vice president of marketing, told Automotive News. The spots are designed to be humorous and feature professional athletes who share the "Edmunds" name — football-playing brothers Tremaine, Terrell and Trey Edmunds, and professional soccer player Kristen Edmunds.
https://www.autonews.com/retail/edmunds-ads-target-tiktok-youtube-meta-audiences
A recent poll from automotive research site Edmunds found that 62% of car shoppers were holding off on purchasing their next vehicle because of high interest rates. Now that the Federal Reserve has re-ignited its rate-cutting cycle — the first slash to interest rates in four years — Edmunds Head of Insights Jessica Caldwell says, “It’s a better time to buy.” Caldwell tells Brad Smith on Wealth! that “some decrease in interest rates is certainly going to be helpful, but it really depends what kind of buyer you are.”
Now is 'better time to buy' a new car amid rate cuts: Edmunds
Football season is in full swing, and Edmunds is all in. The car-shopping platform announced the launch of a new sports-themed advertising campaign called “Name of the Game”, featuring professional athletes — and an accountant — named Edmunds in ads the company said are designed to “make its name even more memorable among car shoppers.” The campaign’s spots star the three football-playing Edmunds brothers — Chicago Bears linebacker Tremaine, Pittsburgh Steelers safety Terrell and former NFL running back Trey — and pro soccer player Kristen Edmonds.
Edmunds' sports-themed ad campaign features a familiar name
Leases have emerged as a rare sign of optimism in an otherwise sluggish electric-vehicle market. Because of a loophole in the law, monthly payments for an electric car lease are lower than a new car loan, and because of that 32% of electric car contracts are leased. But what will the automakers do when these leases expire? Edmunds Head of Insights Jessica Caldwell discusses the EV trend with Scarlet Fu on "Bloomberg Markets".
Bloomberg
"Oftentimes (buying an extended warranty) just comes down to peace of mind," said Ronald Montoya, senior consumer advice editor at car shopping website Edmunds.com. "If you’re not going to feel comfortable with your vehicle, then I recommend you get an extended warranty." Edmunds.com's Montoya said purchasing an extended warranty means, “You’re sort of betting against the car" and if you take care of the car, you shouldn’t have too many issues with it, he said.
Does your new, used car need an extended warranty? Here are the pros, cons
Despite disagreements that flare up online, experts have a pretty definitive answer: Leasing an electric car right now is the better option for most people, compared to buying. "You should lease an EV right now," said Joseph Yoon, consumer insights analyst at Edmunds, an online shopping car site. "At this current point in time with EVs, it's very prudent." If you still need some hard numbers to help you decide, here's a comparison of leasing versus buying a 2024 Tesla Model Y (MSRP $50,380). We used Edmunds buying versus leasing calculator [to help with the calculations].
This Secret Loophole Makes Leasing an EV Better Than Buying Right Now
According to the latest data from car shopping website Edmunds.com, the used car market is hot, with average prices paid for used vehicles in the second quarter nearly 7% lower compared with prices in the same quarter a year ago. Yet the average time to sell used vehicles — the number of days a vehicle sits on a dealership lot before being sold — was 35, compared with 34 days a year earlier. In short, car dealers are selling used cars just as fast as they did a year ago, but consumers are paying less. “You’re seeing real life, true economics happening right before your eyes. I always joke with people, 'If you never understood that Econ 101 class, all you have to do is go buy a car,' ” said Ivan Drury, director of insights at Edmunds.com.
Shopping for a used car? Why now may be the time to buy.