Edmunds

A pretty ?? spooky ?? finding to share from our latest used vehicle analysis on Edmunds: The price gap between new and used vehicles grew wider than ever in Q3, surpassing $20K for the first time, according to Edmunds’ records dating back to January 2004. ?? ?? Throughout the year, Jessica Caldwell and I have been calling attention to another type of gap: the disparity between consumers’ expectations for their next car purchase and the realities of the current market. In this case, consumers’ preferences often lean towards new cars, yet many underestimate current costs—50% of car shoppers surveyed by Edmunds preferred to purchase a new vehicle, but 1 in 7 expected to spend $20K or less. This is as clear a picture as any that many shoppers returning to the market for the first time since the pandemic are in for a serious reality check: the average new vehicle costs $47,542 vs. $27,177 for used. As new-car prices continue to climb, more consumers may need to look to the used market to meet their budgets. While used prices are still up 31% from pre-pandemic levels, they’ve dropped 6.2% since last year, offering more options for budget-conscious buyers. These trends have strong implications for consumers and dealers alike: ?? For shoppers just starting their search, setting a realistic budget will be key. If you haven’t purchased a used vehicle before, consider a Certified Pre-Owned vehicle from a new car dealer.? These vehicles are often the best alternative to a brand new car with the least amount of risk. If your search deviates further away from newer used vehicles, consider scheduling a pre-purchase inspection from a trusted mechanic to check for underlying mechanical or structural issues that may be less obvious. ?? For dealers, now is more critical than ever to educate shoppers on pricing realities. You can help reset expectations for consumers by sharing data on average price trends, creating transparency with financing options and helping buyers understand what their budget can realistically achieve in the current market. Encouraging consumers to secure an accurate value for their trade-in is another great way to help shoppers determine how much money they’re working with toward their next purchase. Check out the full Q3 report on used vehicles on Edmunds here: https://edmu.in/48wtWM1 #EdmundsInsights #AutoInsights #CarBuying #WeDriveItLikeItIs

Edmunds’ chief people officer Jamie Epstein says it best: “Our culture is rooted in the belief that when we trust and empower one another, we each feel a greater sense of purpose and together we thrive.” We’re thrilled to share that Edmunds has been ranked #15 on Newsweek’s 2024 America’s Most Loved Workplaces? list for the second straight year! ?? ?? ?? This recognition reflects our unwavering commitment to maintaining a work environment that celebrates respect, trust and empowerment. Newsweek’s analysis of survey responses from Edmunds employees, along with interviews and reviews of public ratings highlighted our dedication to creating an environment of growth, inclusivity and genuine connection. Our culture at Edmunds is all about fostering a space where our employees feel valued, heard and set up for success — because we know that a thriving team is the heart of everything we do. From impactful professional development sessions to personalized goal-setting and feedback systems, we continue to build on our success of delivering a sense of belonging, ensuring our employees understand how their contributions ladder up to business success and empowering employees to make decisions. Thank you to every Edmunds team member for making this recognition possible. To learn more about Edmunds' work culture and open roles, check out the link below! #EdmundsProud #MostLovedWorkplace

Q3 2024 auto finance data from Edmunds highlights a concerning trend: the number of consumers finding themselves upside down on their auto loans is on the rise. 24.2% of trade-ins for new vehicle purchases had negative equity in Q3, and the average amount owed reached an all-time high of $6,458. Even more alarming, over 1 in 5 consumers with negative equity owed $10,000 or more on their loans when trading in their vehicle last quarter. So, what’s driving this trend? The answer is a combination of market factors and consumer behavior: ?? Market dynamics: During the 2021-2022 inventory crunch, many buyers paid over MSRP, delaying their ability to chip away at the principal of their loans. Now that inventory has normalized and automakers have reintroduced incentives, trade-in values for near-new vehicles are dropping. ?? Consumer habits: Many shoppers are opting for longer (84 month) loan terms to reduce their monthly payments, and they’re also trading in their vehicles earlier than is financially wise. It's crucial for dealers and automakers to educate consumers on the risks of negative equity. That can be done by providing guidance on: ??? Appropriate loan terms: Help consumers look beyond the monthly payment. In addition to demonstrating the total cost of interest over the course of a loan, shoppers should be advised on loan durations that align with their ownership habits. ??Resale values and reduced costs: Steer consumers toward vehicles with proven higher resale values, better fuel efficiency, or lower insurance costs. ?? Prioritize purchase satisfaction: Emphasize the importance of selecting a car the buyer truly wants and plans to keep. Remind customers that trading in too soon, especially if they're unhappy with the vehicle, can lead to financial losses and perpetuate the negative equity cycle. Keeping consumers informed can lead to smarter financial decisions, ultimately benefiting the broader automotive ecosystem. https://edmu.in/4f5yUBy #EdmundsInsights?

Last Friday, Elon Musk shared on X that the Tesla Model 3 Performance had just exceeded its US Environmental Protection Agency (EPA) Rating in the Edmunds EV Range Test. The latest generation of the Model 3 was only the second Tesla (after the Cybertruck) to beat the EPA estimate in our tests, a feat achieved by most other EVs. For the record, we traveled 307 miles on a single charge, four more than the EPA claim.? ? The result had already garnered considerable attention among the electric vehicle community – Musk was commenting on the Tweet of the influencer Sawyer Merritt – but his intervention had an exponential impact on the reach. Within 72 hours, the post cumulatively had over 7m impressions and more than 1300 had shared it. Mentions of Edmunds went up 2500%. For all the recent controversy around his recent political protestations, there can be no doubt that Musk’s power as an influencer is undiminished.

Q3 was unfortunately the same old story as the first half of 2024 in terms of auto financing conditions: Car shoppers found little relief from the elevated interest rates and high prices, which in turn hindered new-vehicle sales growth. One troubling trend emerging in Edmunds auto finance data: we’re starting to see 84-month auto loan terms on the rise again, accounting for 18.1% of new-vehicle loans in Q3 2024 compared to 17.3% in Q2 and 15.8% in Q1. Car shoppers might consider these longer loan terms a quick way to make monthly payments easier to stomach, but the harsh reality is these loans more often than not create issues down the road. Here’s a few reasons why 84-month loans are bad news ?? ?? In Q3 2024, new-vehicle buyers who took out an 84-month auto loan agreed to pay $16,550 in interest ALONE. That is approaching double what the average 84-month loan term interest amount was three years ago when interest rates were significantly less. ??A 7-year loan means consumers are facing a higher possibility of major repair bills while still making car payments because warranty coverage won’t extend that long.? ??Many Americans simply don’t want to keep their vehicle for 7 years. The average trade-in age for a new vehicle is approximately six years according to Edmunds data. ??Longer loan terms put consumers at greater risk of rolling negative equity into their next car loan.? The Fed’s decision to cut rates was a welcome update at the end of the quarter but, on its own, is unlikely to dramatically change the financial landscape for car buyers. We’ll wait to see if they announce another cut in November, but in the meantime… ?? Car shoppers must think beyond the monthly payment and know exactly how much they are paying in interest over the life of their loan. At Edmunds, we put together a helpful calculator to help consumers do exactly that: https://edmu.in/47PhLtw ??Automakers and retailers must also weigh the short-term benefits with the long-term risks that these loans pose to keep consumers financially healthy and satisfied customers. It’s time to think smarter about auto financing for the greater benefit of the entire industry and car shoppers’ wallets?? #EdmundsInsights?

Are you ready for an exclusive game-day experience with the Chicago Bears? ? The Chicago Bears have partnered with Edmunds, a trusted resource in car buying and selling, to offer 100 lucky fans the chance to win tickets, parking passes and on-field VIP experiences for the November 10 home game against New England. ? This sweepstakes is part of the launch of Edmunds' "Name of the Game" campaign, which features Chicago Bears linebacker and team captain Tremaine Edmunds. ? “Representing the name on the back of my jersey means everything to me, so it’s an honor and a thrill to partner with the car shopping experts at Edmunds and give away tickets and parking to a game this season,” said Tremaine Edmunds. “While the shared name brings us together, we have a ton else in common too—from leadership traits to offering genuine advice and delivering strong results." ? In addition to the game-day prizes, fans will have the opportunity to use Edmunds’ free, no-obligation vehicle appraisal tool. This partnership highlights shared values of leadership and trust, both on the field and in car buying. ? The sweepstakes is open from September 25 through October 15, with winners announced on October 17. For more information and to enter, visit the website listed on the graphic. ?? ?

As a digital advertising solutions provider for dealers and automakers, Edmunds helps our partners meet car shoppers wherever they are online. Great work Alison Steinlauf Anziska and the entire Edmunds team!

???? Hey football fans, it’s game time! On the heels of our new “Name of the Game” ad campaign, Edmunds is thrilled to announce a partnership with the legendary Chicago Bears. To kick off the collab, we’re launching an epic sweepstakes for all fans in the Chicagoland area! ????? ?? Now open at edmunds.com/bears, Chicago-area fans can enter to win over 100 prizes ????, including game tickets, parking passes, and exclusive on-field, pre-game experiences for the showdown against the New England Patriots on November 10. Plus, they’ll have the chance to score a FREE vehicle appraisal through the sweepstakes entry page! ???? Fans who complete the appraisal process can receive a real, no-obligation cash offer from one or more dealers in as little as two minutes! ??? Our “Name of the Game” ads feature a roster of pro athletes with the last name Edmunds, including Bears team captain and starting linebacker Tremaine Edmunds. ???? “As Bears fans know, Tremaine is a leader on and off the field, and the heartbeat of the Bears defense. It’s exciting to uplift our shared name and offer incredible prizes for Bears fans at the November 10 home game,” said Alison Steinlauf Anziska, Edmunds' senior vice president of marketing. The campaign highlights Edmunds as the name consumers can trust for all their car buying and selling needs, including helpful resources like Edmunds’ free, online vehicle appraisal tool. The sweepstakes runs from September 25 through October 15. ??? On October 17, we’ll announce the lucky winners! ?? Fans in the Chicago area can head to edmunds.com/bears for their chance at Bears tickets, parking, and on-field experience giveaways today! ???? Help us spread the word: it’s time to praise the Bears and appraise some rides! ????

??A Cut in the Right Direction ?? Today, the Federal Reserve made a pivotal decision to cut interest rates for the first time in four years—a move that could bring much-needed relief to car shoppers in an increasingly unaffordable market. According to Edmunds data: ??The cost of borrowing has skyrocketed over the past few years. In August, both new and used vehicle loans commanded near-record interest rates of 7.1% and 11.3%, respectively. For context: just three years ago, the average APR for new was 4.3% and 7.4% for used.? ??This has resulted in consumers paying significantly more over the life of their loans, particularly in the used car segment. Edmunds data reveals that the average interest paid for all financed used vehicle purchases in August 2024 was $10,299 compared to $8,991 for new. This is a 56% increase for new vehicle loans compared to five years ago, and a 77% increase for used loans.? ? A majority of car shoppers (62%) in an August 2024 consumer sentiment survey said they were holding off on purchasing their next vehicle because of high interest rates. 64% of all car shoppers in the same survey said a Fed rate cut would affect the timing of their next car purchase. Unlike many consumer goods, personal transportation is often non-negotiable. Most vehicle owners can only delay a purchase for so long before necessity takes over—in fact, Edmunds survey data reveals that more than half (53%) of in-market shoppers blame repair costs on their current vehicle as a contributing factor in buying a replacement car. This rate cut should provide a glimmer of hope, especially for price-sensitive consumers who typically gravitate toward the used market and have been grappling with exorbitant auto loan rates. And yet, while this rate cut is a positive development, it’s essential to keep expectations in check. This isn't a silver bullet and shoppers aren’t going to be flooding showrooms right away. Although vehicle prices have cooled from their record highs, they remain significantly elevated when viewed through a historical lens. While we may see an uptick in vehicle buying intent as rates decrease, the first couple of hurdles remain: securing loan approval and realistic budget expectations. Consumers must not only qualify for financing but also manage monthly payments to keep their vehicles. Looking ahead, the Fed's next meeting is scheduled for the day after the presidential election. This timing adds complexity to the next decision when consumers and retailers alike will be watching closely and likely hoping for a continued downward trajectory in rates. However, Chairman Powell emphasized multiple times today that the Fed will approach decisions on a meeting-by-meeting basis, and future rate decreases are not guaranteed. #EdmundsInsights #FedRateCut #Automotive

?? The Name of the Game is Edmunds! ??? Today, I’m thrilled to announce the kick off of one of the most exciting and ambitious brand campaigns in #Edmunds’ history — “Name of the Game”! We’ve teamed up with pro athletes who share our name -the NFL’s Tremaine, Terrell, and Trey Edmunds, and National Women’s Soccer League champion Kristen Edmonds- to drive the connection between #Edmunds and #cars in the minds of consumers and to raise awareness of Edmunds.com as the place to go if you are buying or selling a car. The ads—produced in-house by the #Edmunds creative team, directed by SuperJoy and developed with strategic input from Supernatural AI—will kick off on #Facebook, #Instagram, #YouTube, #TikTok and streaming TV today through Q4! #Edmunds has made it a best practice to help our #automaker and #dealer partners meet car shoppers wherever they are online. With our own brand marketing, we put our money where our mouth is and tap into the same effective #b2c strategy. Catching the excitement of the football season, we are strategically inserting Edmunds into the sports zeitgeist. And just as in football, where every play is driven by preparation and precision, we’re positioning #Edmunds as a trusted partner in empowering consumers to navigate the car-buying and selling with confidence and clarity. Handing out a few “game balls” to the entire #Edmunds #Marketing team for bringing this vision from the practice field to game day. We’re excited to put these spots under the lights! Sneak peek: Stay tuned to the Edmunds LinkedIn handle soon for an announcement of a Chicago-based extension of the “Name of the Game” campaign! #EdmundsProud #NameOfTheGame #WeDriveItLikeItIs #BrandCampaign #CarShopping #Marketing #TeamEdmunds 'Team Edmunds' https://lnkd.in/ggnMqt5K 'Postgame Brothers' https://lnkd.in/gihDVMSM 'Postgame Kristen' https://lnkd.in/g86Kay43