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.”
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.
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".
"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.
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].
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.
A handful of vehicles will be discontinued after the 2024 model year as automakers adjust their portfolios to better serve SUV- and truck-loving American buyers. “You do see SUVs here, but by and large, these are cars,” Cameron Rogers, news manager at automotive research site Edmunds, told USA TODAY. Rogers’ tip for fans of the vehicles on the chopping block: buy while you still can. Decent deals might be available since they are often automakers’ older, less popular models. “If you like this car, go get it now, because you're not going to get another chance,” he said.
Hybrid sales are finally slowing after a springtime surge, according to the auto data firm Edmunds, which means better prices are also likely to be around the corner. And in the secondhand market, one- and two-year-old used car values are down nearly $4,000 from last year. “If you’re shopping for a new car deal, it might actually be on the other side of the lot,” said Ivan Drury, director of insights at Edmunds.
In June 2024, 68% of all new EV transactions were lease deals, compared with 22% industrywide for any powertrain type, including EVs, according to Edmunds.com. Going outside of EVs, some other auto lease deals — which might require a decent down payment — could be found for as low as $299 a month or less in July, according to Edmunds.com research. For example, a lease deal on a 2024 Buick Envista popped up at $239 a month for 24 months with $2,829 down in several states, including Michigan, and was running through July 31.
Shoppers for hybrids will find a number of carmaker incentives this month, according to Edmunds. Buyers can get up to $3,070 off the 2023 Kia Sorrento hybrid (which sells for $36,690), up to $2,500 off the 2024 Audi SQ7 ($90,400) and up to $2,150 off the 2024 Kia Niro ($26,940). Two years ago, the market share for hybrids and electric vehicles was roughly equal, at 5.8% and 5.2% respectively, according to Edmunds. By May this year, hybrid vehicles had pulled ahead to 9.1% market share — up 16.9% year over year — while EVs were at 6.8%.
