Like the pain at the pump, American consumers are also experiencing rising costs in the red-hot car market.
For every CNBC, according to May data from Edmunds.com, monthly costs to finance a new vehicle – 5.1 percent in 70.5 months – now average $ 656. Meanwhile, the average monthly payment for used cars — 8.2 percent in 70.8 months — is now $ 546. New car prices are up 12.6 percent and used car prices are up 16.1 percent compared to last year, according to the latest data from the US Bureau of Labor Statistics.
Unfortunately for many who are looking to buy a vehicle in the coming months, the Federal Reserve will raise interest rates by seventy-five basis points earlier this week to make it even more valuable. There could be another substantial rate hike next month.
“Simply put, there is not enough supply of vehicles that can be sold to support demand,” Jeff Schuster, LMC Automotive’s president of US operations and global automotive forecasts, said in a joint statement with JD Power.
Potential car buyers received more bad news this week when Tesla announced it would increase the prices of all its vehicles in the US amid supply chain issues.
As reported by Insider, the electric-vehicle company’s website previously showed the Model X’s price at $ 114,990, but is set at $ 120,990, representing a $ 6,000 increase. Meanwhile, the Model Y long-range received a price increase from $ 62,990 to $ 65,990.
Tesla CEO Elon Musk warned in April that the company’s first-quarter earnings call for materials and components was rising across the board, but that it had locked down prices with suppliers for a short period of time.
However, customers have recently received some good news when it is announced that the Chevrolet Bolt EV and EUV will be priced below $ 30,000.
According to Car and Driver, the 2023 Bolt EV Hatchback starts at $ 26,595 for the 1LT trim and $ 29,795 for the 2LT trim – representing a reduction of about $ 6,000 for each model and compared to 2022, the EUV starts at $ 28,19 and $ 3 for the Premier – $ 6,300 less than the previous year’s price.
“It now makes the Bolt the cheapest EV in America, reducing the 2023 Nissan Leaf, starting at $ 28,425,” the magazine writes. “Leaf is still eligible for federal tax credits, which will dramatically lower prices, but Nissan is expected to meet the 200,000-vehicle cap that General Motors already has this year.”
Production of the 2023 Bolt EV and EVU will begin later this summer.
Ethan Kim Lyser is a Washington State-based finance and tech editor who has posts on Google, The Korea Herald, Lincoln Journal Star, Asian Week and Arirang TV. Follow or contact them on LinkedIn.