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Tom Libby, a Detroit-based auto analyst, who serves as S&P Global Mobility director of loyalty, talks to Auto Trends with JeffCars.com, a syndicated multicultural automotive radio program about the latest car-buying trends.
Being that this is the five-year anniversary of the Covid-10 pandemic, Libby analyzes the shift in consumer purchasing behavior with new vehicles throughout that period, as well as the average transaction prices.
Bloomberg Intelligence Global Director of Automotive Research Kevin Tynan
For car buyers who have been out of the market since the pandemic, they might be somewhat alarmed when price shopping for a vehicle. The question everyone seems to be asking is when will new car prices begin to slide in reverse. This week on Auto Trends with JeffCars.com, Bloomberg Intelligence's Kevin Tynan, who is also known as a senior auto analyst, joins us to recap the first quarter sales, while discussing vehicle affordability.
After a C-Suite Toyota executive announced in 2023 that the average price of a new vehicle would top $50,000, we'll deliberate about where average transaction prices are currently in 2024, as we examine non luxury, luxury and fully electric vehicle prices, as compared to 2021, when consumer demand outstripped inventory.
Highlight: This two-row crossover/SUV plug-in hybrid can be fully recharged, while driving. The
vehicle also offers applications for a 120-volt and a DC charging.
According to a recent study from AAA, freezing temperatures can take the charge out of electric vehicles. Electric vehicle owners may experience a decrease in driving range, compounded by the use of the vehicle’s interior climate control.
New research from AAA reveals that when the mercury dips to 20°F and the HVAC (Heat Ventilation Air conditon) system is used to heat the inside of the vehicle, the average driving range is decreased by 41 percent. This means for every 100 miles of combined urban/highway driving, the range at 20°F would be reduced to 59 miles. When colder temperatures hit, AAA urges electric vehicle owners to be aware of a reduction in range and the need to charge more often to minimize the chance of being stranded by a dead battery.
Highlight: The CT 200h is able to drive short distances
at low speeds with zero tailpipe emissions, while in EV (electric vehicle)
driving mode.
Test vehicle’s MSRP: $37,850 (base model $32,960)
Seating Capacity: 5
Standard Safety Features: air bags; ABS; an electronic brake force
distribution system; vehicle stability system; traction control system; a tire
pressure monitoring system; and a first aid kit
Standard
Equipment: 17-inch wheels; power sunroof; pseudo leather
seats; a power driver’s seat; keyless entry; a push button starter system; a
dual zone ventilation system; a tilt/telescopic steering wheel; selectable
driving modes (sport, economy and electric); a tonneau cover; and a rear
spoiler
To increase the size of the above chart, click on the photo.
At one point, hybrids were supposed to be the answer to today's rising gas prices. As consumers hit a threshold of becoming quite uncomfortable with paying what consumers perceived to be higher gas prices, consumers trade-in and switch to hybrids and alternative vehicles. However, with most gasoline models being so fuel-efficient today, hybrids currently account for 3 percent of the new-vehicle market, so far this year based on the first quarter of 2014.
While today's hybrids and their plug-in counterparts are packed with a premium price, because of the additional costs required to operate. Consumers can also expect for the non plug-in hybrids to carry a slightly lower three-year residual value, in comparison to more fuel efficient plug-in hybrids, which costs significantly more than a non plug-in hybrid.
By the way, the 3-year residual value, let's buyers know what the vehicles will be worth on the used car market a few years down the road.
The last
time Chevy offered a diesel engine in a car was with the outgoing Chevy
Chevette in the mid-eighties. Fast forward a few decades, Chevy is the back in
the game. This time they have returned with a diesel engine in its popular
compact, the 2014 Cruze. In fact, the
Cruze becomes the first car outside of the German makes: Audi, BMW, Mercedes,
and VW, offering a diesel in America. As a side note, Jeep is currently
offering its first diesel in the non-car segment with the Grand Cherokee, while
Dodge, Chevy and Ford have been players in the diesel light duty truck segment
for years.
And for
those who may have some hesitation about Chevy taking on the diesel car
segment, their engineers are quick to say that the diesel engine that will be
available in the Cruze has been tried and tested in Europe for close to two
decades in their Opel cars, the automaker’s non-American brand. So, with this
being the case, GM is ready to take on the American car segment again, this
time with a fuel-efficient, odorless turbo diesel that will go head-to-head with
the widely-popular VW Jetta TDI.
Diesel Sales
Ironically,
over the past two years, diesel passenger cars have outsold diesel passenger
trucks in the U.S, with only the Germans playing in this segment. This is
supported by the fact that U. S. consumers purchased 101,624 and 125,222 clean
diesel cars respectively, in 2011 and 2102, according to hybridcars.com. In a
year’s time, diesel car sales rose by approximately 23,898 units.
The Jetta TDI,
which led the pack, accounted for 48,099 of the diesel cars that were sold last
year, which equates to about 28 percent of the diesel car segment. With this
type of growth, Chevy sees an opportunity to capture a percentage of those
sales with the new Cruze diesel. Unfortunately, we were unable to get GM’s
executives to reveal their actual sales goal for the compact Chevy.
Initial Launch/Target
Market
Chevy’s Cruze diesel will be available initially in about
12-key states. By the third quarter, the vehicle will be available in all 50 states. Ironically, we found a Cruze diesel on the lot
of a Chevy diesel this past weekend outside of metro Atlanta.
In order to tackle the diesel segment, Chevy’s vice
president of marketing, Chris Perry, says the brand has put together a
three-prong marketing approach. First
Chevy plans on targeting military personnel, seeing that many of them that have
spent time outside of the U. S. have a comfort zone with diesels. In fact, in Europe
diesel cars dominate gasoline models, which is just the opposite here in the
states. Next Perry says Chevy plans on going after those consumers that own a
diesel truck. In many cases, diesel truck owners are primed to own a diesel
car. They are familiar with the durability, maintenance and the great gas
mileage. Lastly, Chevy plans on doing what many will call the obvious, using some
of their marketing dollars to go directly after VW Jetta TDI buyers.
Check out this PBS Special to see how one Philadelphia School used cars to drive student achievement. Its not a new twist on education, but just one means of a teacher being out-of-the box to connect with students who otherwise would be disinterested in school.
What's New: After
seven years, the fourth-generation GS has finally been updated to compete with
the driving dynamics typically found in such German automobiles as BMW and
Audi. The new front-end of the GS defines the corporate grill soon to be on
every Lexus.
Expected Arrival: The
redesign GS is currently available in a rear-wheel drive and an all-wheel drive
configuration. Soon a hybrid configuration will join the line up.
Engine/Horsepower:3.5-liter/306-horsepower
(a 338-horsepower engine will be available in the hybrid)
Price Range: $47,775 to $74,090, when fully optioned
Warranty: 4 years/50,000 miles
Hybrid Battery
Warranty: 8 year/100,000 miles
The editor takes a spin in the GS on The Las Vegas Motor Speedway.
Standard Safety
Features: front, side, knee and rear airbags; a rear
back-up camera; vehicle stability control; ABS; front and rear crumple zones;
and daytime running lights
Standard Features:17-inch
wheels (rear-wheel drive); 19-inch wheels (all-wheel drive); 10 way power front
seats; leather seats; electronic parking brakes with automatic and hold
feature; heated auto dimming outside mirrors with reverse tilt feature; paddle
shifters; push-button keyless starter; High Intensity Discharge (HID)
headlamps; Bluetooth connectivity; and an 8-inch screen for the
audio/ventilation system; power tilt/telescopic steering wheel;
Standard Audio System: a
12-speaker AM/FM/DVD with HD radio and MP3 capability. A 90-day satellite radio
subscription is included with the audio system.
A Unique Feature: To enhance the driving experience, the 2013 GS allows the driver to
customize the feel and the ride with a normal mode, an Eco mode, a Sport S mode
and a Sport S Plus mode, which is available when equipped with the F Sport and
Luxury package.
What's New: Toyota's Prius c is the newest entry to join the Prius hybrid family. It's the brand's only compact four-door hybrid hatchback competing against non hybrids in the Toyota line up like the Yaris.
Expected Arrival:The Prius c will arrive in dealerships in March.
The hybrid and electric vehicle market is having a tough year in 2011. Sales for hybrid vehicles are down 2.7% through August 2011, despite the fact that U.S. vehicle sales are up 10.5%. While automotive companies would suggest that a sluggish economy and lack of supply are hurting hybrid vehicle sales, a recent report from Mintel suggests instead that there is a lack of desirable product for certain demographics.
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“Most believe the profile of the hybrid vehicle owner is a person between the ages of 35-55, with a household income over $75K, and a college education or higher. While this may be the current owner, the biggest potential in the market is with Black consumers,” says George Augustaitis senior automotive analyst at Mintel.
The second-generation, five-passenger Lexus RX hybrid was introduced last summer as a 2010 model just months after the RX 350, the non hybrid version, hit the scene. Along with the new sexy futuristic design, the vehicle also wears a new name – the RX 450h – dropping the RX 400h tag.
Lexus best-selling hybrid not only is draped with new sheet metal, but underneath the vehicle one will find a uniquely designed double-wishbone rear suspension that helps provide exceptional agility and control, along with more cargo space.
And, under the hood, one will find that Lexus made dramatic changes their, too, with its next-generation hybrid system. In this updated midsize crossover, the Asian-based automaker has packed in a 3.5-liter 6-cylinder engine, which puts out more horsepower than its non-hybrid sibling, the RX 350, while also improving fuel-efficiency.
According to fueleconomy.gov this hybrid can achieve somewhere between 30 to 32 mpg in city-driving, while earning 28 mpg on the highway. This estimate takes into consideration both the all-wheel drive and front-wheel drive versions.
Must Have Goodies:
The new RX 450his available with a selection of luxury and sport option packages, which include features like a high-end 330-watt, 15-speaker Mark Levinson Surround Sound system, heated and cooled front seats, a dual-screen rear-seat mounted entertainment system, a dynamic radar cruise control, which automatically adjusts the speed and distance for the driver before rear-ending a vehicle, and a Sports Package featuring a sport-tuned suspension and 19-inch wheels.
The luxury five-passenger crossover is also available with a one-of-a-kind Pre-Collision System (PCS). With the use of radar technology, the PCS recognizes a possible frontal collision and primes the brake assist and retracts the driver's and front passenger's seat-belt in anticipation of the crash.
In addition to the PCS, the RX 450h is also available with two available headlight systems which swivel in the direction of the steering-wheel and the speed of the vehicle. Thus, this helps to improve the overall lighting, when cornering.
And a feature every vehicle should offer is a new automatic high-beam system that automatically switches from high to low beam at night when it detects light from oncoming vehicles.
Moreover, Lexus offers offer a rear-view camera for going in reverse, but what we believe to be a Lexus-exclusive is their all-new wide-angle side view monitor. With a camera located under the passenger side-view mirror, the driver can check hard-to-view areas on the passenger side of the vehicle by simply selecting a button on the navigation screen or the steering wheel and view the camera image on the navigation screen. Yes, big brother was always riding along with us even when we didn’t realize it.
Ford Motor Company will up the ante this fall, offering a hybrid in their entry-level premium luxury sedan, the MKZ, for the same price as their non-hybrid gasoline model. This is a first in the industry. How Ford is able to do this no one knows as of yet.
Since hybrids were first introduced by Toyota, they've always commanded a premium price, anywhere from $1,500 to $4,500 over a similar non-hybrid model. Most consumers have been unwilling to fork over the extra dough needed to attain a 10 to 25 percent improvement in mileage.
Over the years the federal government has stepped-in, offering tax credits to help offset the premium price being charged for hybrids. However, Ford, Honda and Toyota no longer qualify for tax credits, since those automakers have met the government production qualifications.
It should be interesting to see how many of Lincoln's MKZ customers opt for the hybrid over the gasoline model, since they'll be basically priced the same. Ford officials hasn't said if they'll realign the pricing of their other hybrids. If this experiment works, this could be the push needed by the industry to encourage more consumers to buy a hybrid. It will be interesting to see if the other automakers fall in line with their pricing strategy, too. So far, hybrids represent less than 2.5 percent of total new-vehicle sales.
So far research indicates almost 48 percent of hybrid owners had a household income above $100,000 compared to 35.2 percent for non-hybrid owners. With minorities expected to be the majority population in the near future, according to the Census, automakers must do a better job of connecting with these sub groups, if they expect to push fuel efficiency.
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