The Chevrolet Trax is my biggest surprise of the year!
The first question comes from several viewers and fans who wanted a Rivian RV van.
Q: (Several questions summerised) Is it possible to get a Rivian RV van, or a used Amazon Rivian van?
Will Rivian build a version of their Amazon van that the public can buy?
– Several questions (combined) over the past year
A: Sort of: while there has been no announcement about a Rivian RV van, the Rivian van will be available for fleet sales soon.
I have to confess, I love the way the Rivian delivery van is designed. In terms of exterior esthetics, and modern interior design, this electric van is pretty cool. Ah, but I just said something that may cast a spanner in the possibility of this thing making a good RV (recreational vehicle); it’s all-electric.
The larger version of the van (there are two) has an estimated range of 153 miles. The shorter van has a total estimate range of 161 miles. Neither are ideal for heading off to a campsite in the boonies. These are delivery vans, built for city and suburban runs. They have the ability to charge at up to 100 kW – which isn’t that fast. As such, you would probably have to pull over often to charge, and wait a while as you do so. Not ideal for getting away from it all.
Still, that’s not to say that it’s impossible for Rivian to boost the range in the future – IF public sales ever happen. Rivian made it clear that this van is for fleets only. If you think you’ll be cunning and buy one for you fleet of one – you’ll be disappointed. The sales folks at Rivian say that they will focus on big fleets first.
You may have a long wait.
Finally, there’s the cost. These things are not toys: they’re made for profit. Depending on the size, they start at $83,000 and go up to $87,000 – before options and upgrades. You can learn more about these vans by heading to Rivian’s fleet website.
– N
The last question initially came from TFL’s very own Brenden, asking about my favorite inexpensive car. It mutated into a conversation with TFL Studios’ Editor/Producer Zach as well.
Q: (Summerized) What is the most surprising car for you this year, and what is the best value proposition you’ve driven as well?
Is it the Chevrolet Trax? Maybe its cousin, the Buick Envista?
– ZacBren
A: Yes. The Chevrolet Trax is one of the most surprising vehicles this year, with its cousin, the Buick Envista a close second.
Sure, they are very similar under the skin and have tiny 1.2-liter, three cylinder turbos. They also have no option for all-wheel drive – and that makes them tall hatchbacks in my book. In addition, they are mad in South Korea, which bothers some people.
Not me. I think that both cars are killer bargains for their segments. They are comfortable, have good power (for their size) and feel like they are well screwed together. In addition, the standard tech is impressive, as is the frugality of both vehicles.
Base price for a 2024 Buick Envista is less than $23,000. The base price for the Chevrolet Trax is about a thousand dollars less than that. These cars have a impressive list of safety features, have the utility of a hatch (although the Trax is more utilitarian), and they are actually kind of fun to drive.
Let me put it another way: making 137 turbocharged horsepower, and weighing in at a bit over 3,000-lbs, nothing in this price-range is as rewarding, nor as comprehensibly well equipped. A mid-level Nissan Kicks, or Hyundai Venue just feel sluggish and cheap by comparison.
Honestly, I did not expect to like either this much.
Alfa Romeo continues to fill out its SUV lineup with a new subcompact model called the Milano.
After the brand launched the Tonale, we’ve seen rumblings of the next model to make its way down the pipeline. The speculation culimnated last week in a cryptic post on Twitter/X showing a set of GPS coordinates, including Alfa’s own Museo Storico, the Balocco Proving Grounds, the Stelvio Pass after which it already named its midsize crossover, and the Brenner Pass on the Italy-Austria border (or Brennero Pass, as the Italians call it). While that last one makes total sense as a cheeky hint at the brand’s next SUV, that is not the case, as the automaker officially teased its upcoming model as the “Milano”.
This “game-changing #SportyUrbanVehicle”, as Alfa Romeo refers to it, will in fact be the brand’s first electric SUV, as the company did confirm the Milano as its first step into that arena. However, several reports amid the rumormill buzz suggests the car will offer an internal combustion engine (ICE) option — most likely a hybridized 1.2-liter turbocharged engine offered in the European market Fiat 600 and the Jeep Avenger Hybrid. The Milano will ride on Stellantis’ “CMP/eCMP” architecture, which is adaptable to ICE vehicles as well as purely electric versions.
As part of its “Dare Forward 2030” plan, brands under the Stellantis umbrella will start to phase out its gasoline engines later this decade, and Alfa Romeo has committed to ditching internal combustion entirely by 2027. So, while the Milano likely will offer a hybrid option at first, the electric model will ultimately be the only variant available moving forward. The BEV model could arrive in both single-motor front-wheel drive and dual-motor all-wheel drive variants, though powertrain details are unclear, for the moment.
In all likelihood, the Alfa Romeo Milano should bring a similar setup to the Jeep Avenger, which launched over in Europe as the brand’s first full EV and a subcompact alternative to popular rivals in that market. Using the WLTP cycle, the Milano may get a range of up to 239 miles, though it’s worth noting (as always) the European figure is typically far more optimistic than EPA ratings.
And that leads to the obvious question: Will the Alfa Romeo Milano come to the U.S. market? Well, if the Jeep Avenger is any indication, probably not. It is set to go on sale over in Europe next fall with the electric variant, followed by a plug-in hybrid a few months afterward. Still, some of the styling and technology could make its way into future U.S.-bound EVs, so the little Alfa is still worth keeping an eye on.
We’ll know more about the Milano and exactly where it will go on sale when it fully debuts in April 2024.
Cruiseannounced it would cut almost 25% of its workforce, amid months of turmoil after a high-profile incident and safety investigations.
General Motors’ Cruise autonomous vehicles unit is in a major shakeup, as it announced the firing of nine executives Wednesday — including the company’s chief operating officer Gil West — and would slash its payroll by 900 full-time employees Thursday. Both moves come after CEO Kyle Vogt and co-founder Dan Kan both resigned from their positions in the past few weeks.
Cruise pulled its vehicles from testing after California pulled its permits, following a pedestrian accident in San Francisco in October. On top of its regulatory woes, GM said it would cut back spending on its robotaxi subsidiary, which lost more than $700 million in the third quarter of 2023 alone. The automaker says it “supports the difficult employment decisions made by Cruise as it reflects their more deliberate path forward, with safety as the north star.”
Currently, Cruise faces an investigation by the National Highway Traffic Safety Administration (NHTSA), as well as scrutiny from state regulatory bodies like those in California. The latest round of layoffs primarily focus on making certain commercial operations and corporate positions redundant, as the company aims to dramatically change its initial plans moving forward. Beyond trimming expenses, Cruise could face millions of dollars in fines and added restrictions when it does eventually relaunch its operations.
In November, Cruise said it would reboot its autonomous vehicle operations in one unspecified city. From there, it would expand outward once again, but that is still a marked departure from just a few months ago, when the company had ambitious plans to ramp up its robotaxi service to the public in several cities across the U.S.
Of the executives leaving the company, Cruise said in a memo: “We are committed to full transparency and are focused on rebuilding trust and operating with the highest standards when it comes to safety, integrity and accountability. As a result, we believe that new leadership is necessary to achieve these goals.” Among those departures were Cruise’s Chief Legal and Policy Officer Jeff Bleich as well as Senior Vice President of Government Affairs David Estrada.
The 2024 Lexus GX 550 carries a pretty substantial premium, for all its updates.
Lexus’ first major overhaul of the GX SUV in more than a decade drew a ton of hype. Hundreds of thousands of you checked out our debut video earlier this summer, but with such major change we’ve been waiting for the other shoe to drop: How much will this new model cost? Now we know, as Lexus prepares to ship all trims of its 2024 GX 550 to dealerships in early 2024. For this upcoming model year, the third-generation GX will start off at $64,250 for the base Premium model, or $4,025 more than the equivalent 2023 version.
Of course, you’d expect a new vehicle to cost more than its predecessor, though you’ll have to decide whether the price hike is totally reasonable or a bit of a gut-punch. For that extra cash, you do get a brand-new powertrain: A 3.4-liter twin-turbocharged V6 engine replaces the old-school 4.6-liter V8, and puts out 349 horsepower and 479 lb-ft of torque. Not only do you get some extra grunt, but the 2024 Lexus GX also tows up to 8,000 pounds, depending on which trim you buy. That’s a substantial increase for a midsize SUV. On the flip side, though, Lexus says fuel economy comes in at 17 mpg combined, despite the turbocharged powertrain and 10-speed automatic transmission.
As before, the GX still offers both Premium and Luxury trims, each with “Plus” versions bringing some extra features to the mix. The real headline with the 2024 model, though, is the “Overtrail” trim, which leans into the SUV’s off-road capability. With the Overtrail, you get 33-inch all-terrain tires on bespoke 18-inch wheels, a locking rear differential, aluminum skid plates and black fender accents and cladding. This model also gets Toyota’s Kinetic Dynamic Suspension System (KDSS) as standard fare, as well as a 3D terrain monitor and off-road-specific drive modes.
Here’s the full trim walk
While there’s a $17,000 price delta between the base MSRP for the Premium and the highest-end Luxury+, you can get the Overtrail for just under $70,000 to start. So, while it’s the trim a lot of enthusiasts want, they won’t necessarily have to brace for a bill over $80,000…at least until they start with the modifications.
This is the full price spectrum, by trim:
GX 550 Premium: $64,250
Premium+: $69,250
Overtrail: $69,250
Overtrail+: $77,250
Luxury: $77,250
Luxury+: $81,250
Again, we should see the first examples hit dealers right on the other side of the new year, in the next several weeks.
The 2026 Cadillac Vistiq is the brand’s third EV reveal this year, after the Escalade IQ and the Optiq.
While we don’t have any official specs yet, Cadillac did show off its next three-row electric SUV by way of a couple exterior images. If you’re keeping score, that gives the brand five EV models, from the hugely competitive compact crossover segment to the flagship, ultra-exclusive Celestiq sedan, with several more SUVs in between. The Cadillac Vistiq will be a three-row crossover, slotting between the existing Lyriq and the soon-to-launch Cadillac Escalade IQ.
Based on its market position as well as its styling, you can think of this as a fully electric follow-up to the XT6. Cadillac doesn’t have too much to say on the matter just yet, but Thursday’s statement did say it will be a “distinctive and innovative luxury three-row SUV”.
On first glance, it looks like the 2026 Cadillac Vistiq cribs quite a few elements from the brand’s existing EVs, as you’d expect. You get a distinctive light pattern out back (shown below) that draws from the Escalade IQ. Up front, I’d argue the fascia draws a bit more from the Lyriq, though GM’s goal is naturally for all its SUVs to show a strong resemblance to each other.
Also at the back, Cadillac included a “600 E4” badge, signifying the car’s torque figure in newton-meters. That translates to about 443 lb-ft of torque, which more or less tracks with the drivetrain underpinning the dual-motor Lyriq. So, it’s fairly safe to assume we’ll see a similar setup for the Vistiq that we already have for the Lyriq.
Finally, you get some huge 22-inch wheels to fill out those wheel arches. I say “huge”, but it seems that size is just the new norm these days, and anything smaller would probably look ridiculously tiny.
Cadillac notes the Vistiq as a 2026 model, so we should see the production version make its debut sometime late next year or in early 2025. The Escalade IQ will definitely be on sale by then, and Cadillac will likely just put the Optiq on sale before launching this model to fill out the brand’s electric SUV presence.
✓ Spacious interior, as long as you skip the panoramic sunroof
☓ The sub-$50,000 model isn’t here…yet
✓ Several powertrain options (FWD, RWD or AWD on the menu)
☓ Annoyingly slow charging port door
✓ Solid driving dynamics (for an SUV, at least)
✓ 324-mile range with the larger 102-kWh batter RWD model
2024 Chevy Blazer EV Overview: A surprisingly well-rounded, mass market-friendly option
As we face an onslaught of brand-new EVs hitting the market, we’ve been tapping our feet a little less patiently these days for the 2024 Chevy Blazer EV to arrive. Fortunately, it’s finally here and in dealer showrooms in its sporty looking RS trim, so we have the opportunity to see if it was worth the wait. If you’re just looking for a short answer: Yes, the new Blazer EV is worth your consideration if you’re ready to make the jump. That said, we need to have a more nuanced discussion about this car’s strengths and shortcomings, and if you are aiming to pull the trigger, which Blazer EV you might want to go for.
When I first arrived in sunny San Diego to give the all-electric Blazer a whirl (full disclosure: Chevrolet did bring Nathan and I out for this trip), my initial impression was just how normal it looks. While this car is a fundamental shift from the gasoline-powered model that’s been on sale for a few years and rides on GM’s new Ultium platform, it still looks familiar. It doesn’t look super futuristic or weird for its own sake, which may put people off some of the automaker’s rival EVs. It’s a similar story with the Blazer’s smaller Equinox EV sibling: By and large, these look like a natural evolution of their gasoline counterparts.
Interestingly, the new Chevy Blazer EV also hits buyers with more choice than its rivals offer. While we’re specifically driving the rear-wheel drive and all-wheel drive versions of the mid-range RS trim, you’ll also be able to get the performance-oriented AWD Blazer SS or even a front-wheel drive variant in 2024. That is one of the upsides of going electric, as the platform allows engineers to offer several powertrain options within the same fundamental architecture.
Overall, Chevrolet’s first mainstream Ultium model makes a solid first impression. It looks sharp, it drives with reassuring composure (more on that later) and offers pretty decent range to boot. Keep in mind, though, you are paying a premium for the privilege. The cheapest Blazer EV model currently available is the all-wheel drive LT, also known as the 2LT, which starts at $57,110. In other words, nearly $20,000 more than your equivalent gasoline Blazer 2LT.
If you want the RS, the eAWD model starts at a hefty $60,215, while the RWD version is pricier still, at $61,790. Chevrolet says the base FWD “1LT” will bring the barrier to entry down to below $50,000, but they have not officially announced pricing or exactly when that model will arrive: We just know it will land sometime in 2024.
Looking at the 2024 Chevy Blazer EV by the numbers
Let’s piggyback off my earlier powertrain options comment for a bit longer. That’s the main selling point GM pitches in developing the Ultium ecosystem: It offers the automaker a modular and scalable platform. Granted, that’s not a unique take as every other company with their hat in the EV ring takes the same approach. This is the first time we’re seeing GM package it in a more “affordable” form, though, since we’ve only experienced Ultium in the eye-wateringly expensive GMC Hummer EV, the Cadillac Lyriq and the Chevy Silverado EV pickup. Here, Chevrolet can build out their range of mass market EV to drive electric car adoption, with the Equinox EV arriving in a few months to follow up the Blazer EV’s launch.
To that end, the 2024 Chevy Blazer EV will be most folks’ opportunity to experience Ultium’s flexibility. The base LT model launching in due time packs a single, permanent magnet electric motor making about 241 horsepower (at least, based on what we know from the Equinox: Chevrolet did not discuss specs for this future variant during our trip). Their “eAWD” system is technically optional on the LT model, though it is the only version of the base trim you can build and price on the brand’s configurator site as of December 2023. That option, which comes on the sportier-looking RS by default, adds an induction motor on the rear axle that adds some extra power to the mix, but not as you might expect.
According to GM’s assistant chief engineer for electrification Patrick Lencioni, that rear motor is more of a traction assist motor, than an element to boost performance. So, while the company states the eAWD’s output as 288 horsepower and 333 lb-ft of torque, that’s not an entirely linear jump from what the purely FWD model should put out, when it arrives. In fact, Patrick told me that rear motor is just “along for the ride” most of the time, and only kicks in when accelerating or when the front wheels start to slip, and the induction motor can bring a bit of extra traction to help sort things out. The two power units are not directly connected like your conventional all-wheel drive system, and only work in tandem through the car’s onboard software.
When Nathan and I tested it out, the Blazer EV RS AWD managed a 0-60 time of about 7.88 seconds.
The rear-wheel drive version of the 2024 Chevy Blazer EV actually uses a completely different (and beefier) motor. That’s part of the reason the RS RWD is more expensive: You get 340 horsepower and 325 lb-ft of torque by way of the larger unit. Thanks to the extra grunt, we managed a quicker 6.55-second 0-60 time in an impromptu 0-60 test.
Not only are the drive units different between the eAWD and RWD versions of the 2024 Chevy Blazer EV, but so are the battery packs. The rear-wheel drive model uses a larger 102-kWh module, while the front- and all-wheel drive variants get a smaller 85-kWh pack. That translates to a real-world driving range of 279 miles for the eAWD models, according to GM’s figures. If you want to get much better range, though, you’ll want to go for the RWD, which returns up to 324 miles on a single charge.
The physical size of the packs is not the only difference, either. You’re also able to charge up each version at different rates. If you get the 85-kWh version, GM says you can charge at up to 150 kW on a DC fast charger (good for 69 miles of range in ~10 minutes), while the 102-kW pack can charge up to 190 kW (78 miles in 10 minutes) in appropriate conditions. On a Level 2 AC charger, both batteries can pull up to 11 kW.
There is one caveat to the Blazer EV that annoyed me and Nathan in our days with both RS models. The charging door, which you open with a touch-sensitive button on the driver’s side, is agonizingly slow. It looks cool, don’t get me wrong, but waiting around while you’re holding a heavy DC fast charging cable will bother some people after awhile, I suspect. You’ll also only experience that when you go to charge, but because charging up is a fundamental part of the EV ownership experience, for better or worse…it’s definitely something you should sample on your test drive.
The 2024 Chevy Blazer EV has a fantastic interior
Once you get inside, though, it’s an almost entirely pleasant experience. Chevrolet decided to fit the Blazer EV with a standard 11-inch digital instrument cluster and 17.7-inch infotainment screen, both of which look great and offer a wide range of useful information. Unlike some other EVs, too, you still get a decent range of hard buttons for the major controls, including a volume knob. You also get wireless charging and Google Built-in apps, though you don’t get Apple CarPlay or Android Auto. GM says it can deliver a more curated experience by bringing its own infotainment system to the party (that includes baking in popular apps like Google Maps, Waze and Spotify), but the Blazer EV is one of the first vehicles to see the effects of GM’s highly publicized and contentious decision.
On the whole, the company’s system is responsive and fairly intuitive to use. One of the best parts about it are the drive modes — Normal, Sport, Snow and My Mode on the RS — that tune the throttle, brake and steering feel to the conditions or your preferences. The 360-degree camera system is also a major plus point, as it brings several frontal, overhead and rear-facing views, as well as guidance lines for parking or even hitching up for towing. The eAWD variants can tow up to 1,500 pounds, while the RWD version can tow up to 3,500 pounds, when properly equipped.
Two of the best features of the 2024 Chevy Blazer EV’s interior are the gear selector stalk and the HVAC vent design. GM is moving to a column-style shifter rather than a push-button system, and while it’s electronically controlled, it does feel more satisfying than just pushing a button to get going. The red inlays for the vents on the center stack and the upper portions of the instrument panel also bring a bit of spice to what otherwise would be a fairly utilitarian interior.
My biggest gripe with this car’s ergonomics is the “Controls” screen, wherein Chevrolet decided to place all the headlight controls, meaning you can’t turn the headlights on our off through a stalk or knob to the left of the steering wheel, as you normally would. That’s also something you’ll have to contend with in several of Chevy’s newer gas models including the Colorado. Again, there is technically a shortcut button right next to the steering wheel on the infotainment screen and you never have to worry about it if you leave the lights in Auto, but still…just as the little things can really set a car apart, they can also annoy you to no end.
While we’re on the subject, there’s no push-button to start the car, either. As long as you have the key on your person, you just hit the brake and put the car into gear. That’s actually fairly nifty and straightforward, but the control to turn the vehicle off is also placed on the infotainment screen. Again, you don’t have to do it, as the Blazer EV will shut itself off when you exit and lock it, but it’s one other feature with which you’ll have to change how you would normally operate the car.
Both front and rear, the 2024 Chevy Blazer EV has plentiful leg and hip room. Especially in the back, there is ample legroom to seat five adults comfortably. Rear passengers also get heated outboard seats in the RS, as well as a couple USB-C charging parts. Headroom, on the other hand, is at a premium on models with the panoramic sunroof equipped. The red and blue contrast stitching is a nice styling touch, though, and the seats themselves are remarkably comfortable for longer trips, no matter which row you’re on.
On the cargo volume front, the 2024 Chevy Blazer EV offers up ample cargo volume thanks to the car’s overall dimensions. The electric Blazer rides on a 122-inch wheelbase and measures out to 192.6 inches long and 78 inches wide, which translates to 59.8 cubic feet of maximum rear cargo space with the second row folded. That’s not all, either, as there’s a deep storage pocket below the cargo floor, which can stow your valuables out of sight along with your charging cable.
Between vast legroom, good cargo room and surprisingly conventional console storage up front, the 2024 Chevy Blazer EV aims to be a far more approachable prospect than a lot of other EVs, and that’s a good thing.
Verdict: The 2024 Chevy Blazer EV RS is a great choice for the EV-wary
Even in the first few miles, I’m impressed with how well this new Blazer EV handles itself. It may be even greater sacrilege than the gasoline model to the old K5 Blazer faithful, but on its own merits this car looks great, at least in my opinion. It also offers up some decent power in the RWD model and it drives with composure and refinement. It’s no sports car, I’ll grant you, but as family-minded rigs are concerned, the Blazer EV is a good choice…so long as you’re looking for something conventional.
That leads me to Nathan’s final comment in our video review below: “I like it, but I don’t know if I love it.” While GM’s approach makes this an appealing prospect to a wide audience, the general lack of weirdness or an element that seriously stands out from the pack may keep some folks searching for their next EV purchase.
And I agree: As an all-around proposition, the 2024 Chevy Blazer EV is seriously tough to fault. Apart from the relatively high price, all my complaints about this car are fairly minor. Whether it will call to you depends on what your needs and tastes are. For instance, if you need all-weather capability, you’ll likely gravitate toward the FWD or eAWD models. If you live in a sunny, warm climate, the RWD is the obvious choice. But keep this in mind if you want a bit more: We have not yet driven the SS version of the new Blazer EV.
With 557 horsepower, 648 lb-ft of torque and a 0-60 time of under 4 seconds in GM’s so-called “Watts to Freedom” mode (see the acronym there?), that could be the tipping point for those who aren’t quite on board with what the RS model offers. We’ll have to wait and see on that one.
Tesla launched a recall to update its Autopilot software in virtually all its U.S. vehicles.
After a two-year investigation by the National Highway Traffic Safety Administration (NHTSA), Tesla issued a recall campaign to update its Autopilot software system in more than 2 million vehicles on U.S. roads, stretching from 2012 models all the way to recently built units. The update comes after several high-profile accidents — some fatal — involving Tesla’s semi-autonomous system and massive scrutiny over how drivers can, and more importantly should, use it.
“Basic Autopilot” is the system Tesla refers to in the defect report filed with the NHTSA. This is the system that comes standard on all Tesla vehicles, while at-cost upgrades enhance (or unlocks, depending on how you look at it) greater capability for certain hands-off driving situations. “In certain circumstances when Autosteer is engaged,” the company says, “the prominence and scope of the feature’s controls may not be sufficient to prevent driver misuse of the SAE Level 2 advanced driver-assistance software.”
The NHTSA opened a probe into the issue in August 2021. Through December 8, 2023, Tesla says it identified 9 warranty claims related to the condition and has pledged its full cooperation to the investigation since its inception. After “several meetings” with the agency, it says it is out a software update to all U.S. vehicles to update the Autopilot software. “While not concurring with the agency’s analysis,” Tesla wrote, “in the interest of resolving [the analysis], Tesla determined on December 5, 2023, to voluntarily administer a recall to provide the remedy described below.
(Image: Insurance Institute for Highway Safety)
Tesla says it is rolling out a free update to software version 2023.44.30 to update its Autopilot feature.
The update “will incorporate additional controls and alerts to those already existing on affected vehicles to further encourage the driver to adhere to their continuous driving responsibility whenever Autosteer is engaged, which includes keeping their hands on the steering wheel and paying attention to the roadway,” according to the NHTSA report.
Depending on what sort of hardware is in the vehicle (this impacts decade-old Teslas as well, remember), the update will include “increasing the prominence of visual alerts on the user interface, simplifying engagement and disengagement of Autosteer, additional checks upon highways and when approaching traffic controls, and eventual suspension from Autosteer use if the driver repeatedly fails to demonstrate continuous and sustained driving responsibility while the feature is engaged.”
In lay terms, the system will be more restrictive than it’s been in the past about where it will fully engage, and how long it will keep going if it detects the driver isn’t paying attention. To be clear, the company already stipulates the system should only be used with drivers’ hands on the wheel and eyes on the road, despite what the “Autopilot” name implies.
Hyundai is one of the few exceptions actually trending higher over the past few months, but most automakers’ prices are falling. (Image: Hyundai)
If you’re shopping certain brands, you’ll find a much better deal than you could a year ago.
Since 2020, reports far and wide have shown the astronomical jump in new car prices, with average transactions rising from around $36,000 to a gut-wrenching $48,808 this past June. With inflated prices and higher interest rates, consumers are spending more than ever on a new set of wheels, but Kelley Blue Bookjust published the latest set of data showing a far more positive trend for buyers over the past few months: New car prices are dropping year-over-year.
It’s not necessarily time to break out the champagne just yet, as prices did technically increase slightly in November. With average transaction prices (ATPs) hovering around $48,247 for November, though, that jump is less than 1% higher than the October figures, and an 8.9% drop on November 2022. That latest ATP represents the lowest level we’ve seen since April 2021, as prices continued to climb and have remained stubbornly high ever since.
In the light of altogether more positive news for consumers’ wallets, it’s worth discussing the circumstances that led to our current situation. Amid production woes and global supply chain concerns resulting from the COVID-19 pandemic, automakers drastically cut back incentive spending, taking money off the hood for prospective buyers and raising prices in tandem to maintain profit margins with fewer vehicles. While some companies formerly spent up to 10-11% of a vehicle’s ATP on incentives — you especially saw that with trucks, where the Big Three offered several thousand dollars off their new models — incentive spend retreated to just 2% of a vehicle’s ATP throughout most of 2022 and into 2023.
As KBB points out, the lower ATPs tend to result from incentive spend and discounts moving back to pre-2020 levels, rather than baseline retail prices actually dropping. In November 2023, buyers could see incentive packages totalling 5.2% of a car’s transaction price, a level more than double what it was a year ago. In practice, that means you can net a few thousand off something like a new Nissan Rogue by way of $2,500 cash incentives or far more attractive financing like 2.9% for 60 months. It’s still not the near-zero interest rates you could regularly find back in the 2010s, but at least it’s easier to find more discounts among the most popular models out there, at least for some automakers.
Among the 35 brands KBB analyzed, 16 showed price declines through November 2023 over a year ago. Tesla had the most precipitous drop, with new prices falling an astounding 20.5% from where they were in 2022. That tracks with the brand’s aggressive cuts throughout this year to drive sales volumes, much to the consternation of some investors who worry about the brand’s stock value when each quarterly earnings report misses targets and shows slimmer per-unit margins than in past years. It’s not just Tesla’s average prices that fell, though, as Buick dropped 6.4%, Land Rover dropped 6% and Nissan dropped 5.7%.
Luxury car prices also declined by 7.5% year-over-year, thanks to greater inventory and higher incentives. Both those factors drove huge 8.4% year-over-year sales growth, to the point where luxury market share actually rose above 20% in the U.S. for the first time since KBB started collecting data. The average price someone paid for a luxury car was $63,235 in November 2023.
Some automakers are trending in the other direction, however. Stellantis actually shows a 7.8% increase in prices over a year ago (and 2.9% in November), while Mazda increased 6.4% and Hyundai rose 4.1%. It’s worth noting that Volkswagen saw a marked 6.1% jump in ATPs in November 2023 against the same month last year.
While virtually every automaker has some holiday incentive event happening right now, the jump in ATPs tends to track with weaker incentives, as you’d reasonably expect. “Non-luxury incentives are currently seen as low by historical standards,” KBB’s report points out, “despite being at their highest point since September 2021. For comparison, non-luxury incentive packages averages 10.5% of ATP in November 2019.”
EV prices are also falling
One of the most widely discussed and contentious points in the industry is when electric cars will reach price parity with internal combustion vehicles. According to this data, we’re closer to seeing that actually happen, thanks to plummeting EV prices as the market gets larger, inventory levels increase and overall demand slows down. Electric car market share is still on the rise, though the adoption rate may plateau in early 2024 as automakers cut back production. Ford, for example, cut its F-150 Lightning production in half amid relatively weak take rates after early adopters bought into the brand’s first all-electric truck.
The average price consumers paid for a new EV in November was $52,345. That’s up slightly from $51,715 in October, but incentives are also among their highest points and well above the industry average. Last month, electric car incentives totaled 8.9% of the average transaction price, up from just 2% a year ago, thanks to automakers either dropping their MSRPs, offering more cash on the hood to entice buyers or leveraging the $7,500 federal EV tax credit along with state incentives.
“A year ago, the EV premium was more than 30%,” said Cox Automotive’s director of strategic planning Stephanie Valdex-Streaty. “Today, it’s less than 10%.” In other words, looking at average transaction prices industry-wide, EVs are only 8.5% more expensive than your average gasoline vehicle. That said, there are plenty of variables in play, including the red-hot luxury car market skewing ICE vehicles higher against EVs.
If pricing for new electric cars continues to fall faster than ICE cars, though, we may reach parity — where an EV costs the same as a gas-powered car — in the near future.
