prices

Demand Increases for Hybrid, Electric, and Economy Cars Amid Surge in Gas Prices

Used car prices are up 35.0 percent over last year as the microchip shortage continues to impact the automotive industry, according to iSeeCars.com’s latest analysis of 1.8 million used car sales in February. This is down from a 36.9 percent increase in January.

“After coming down slightly in February, used car prices remain elevated due to lingering supply constraints, and they are expected to rise again due to geopolitical factors as Russia is a key supplier of materials used to make car parts and microchips,” said iSeeCars Executive Analyst Karl Brauer. “We are also seeing a significant increase in demand for used hybrid and electric vehicles as a result of high gas prices, with the cost of hybrids increasing by 46.9 percent and electrics increasing by 43 percent compared to last year.”

Although the average used car has significantly increased in price, iSeeCars’s analysis also found some vehicles

Read More

Tesla hikes car prices by thousands of dollars as costs for raw materials soar

Tesla, the world’s largest producer of electric cars, has raised the price of its vehicles by thousands of dollars in just the past two weeks as the price of raw materials like metal have skyrocketed

The listed prices of several new Tesla models climbed Tuesday, according to the company website, compared to the prices from March 1. Tesla CEO Elon Musk hinted earlier at why prices are rising, saying in a tweet Sunday that the company is “seeing significant recent inflation pressure in raw materials and logistics.”

Tesla’s Model X now costs $114,900, a jump of more than $10,000. The Model S price has risen by $5,000, to $99,990; the Model 3 Performance price by $3,000, to $61,990; and the Model Y price by $4,000, to $62,990.

Across

Read More

As prices top $4 a gallon, should you consider an electric vehicle? One consideration: They’re more expensive to insure and repair. Here’s why.

Not only are electric-vehicle sticker prices higher on average than comparable cars and SUVs with traditional internal-combustion engines (ICE), the cost to insure an EV outruns its gasoline-guzzling cousins.

Is that because it’s challenging a 100-year-old auto market, and an even older insurance industry with specialized technology? Or because it’s the Roadster, whose speedometer tops out at 250 miles per hour?

The answer is, well, both.

That’s because insurance premiums are built on damage and repair histories, which for EVs is small, yet expanding. EVs are, in many ways, more simply built, with less components, than traditional cars.

But the experts allocated to fix them are still getting up to speed. And parts —semiconductor chips, for starters — can be hard to source, or are subject to trade conditions, even before COVID-19 supply-chain issues disrupted the flow of goods.

“There’s a lack of data or experience with insuring and

Read More

Car dealers are raising prices. Automakers are pushing back. Consumers are stuck in between.



Business

Data shows such markups are pervasive across the industry: More than 80% of U.S. car buyers paid above MSRP in January, according to Edmunds.

A long line of unsold 2021 Grand Cherokee sports-utility vehicles sits at a Jeep dealership Sunday, Jan. 24, 2021, in Englewood, Colo. AP Photo/David Zalubowski

Soaring car prices have set off a battle between automakers and independent dealers, with consumers routinely paying hundreds, often thousands, more than the listed price amid a protracted vehicle shortage.

Ford and General Motors recently upbraided dealers for ignoring the manufacturer’s suggested retail price, or MSRP, a practice that was practically unheard of a year ago and GM calls “unethical.” They’ve threatened to withhold deliveries of their most popular offerings, including Ford’s buzz-generating F-150 Lightning pickup, and other forthcoming EV models.

But data shows such markups

Read More