CNCDA moves to block Scout Motors, sales for smaller cars spike, automakers donate to Trump inauguration

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— CDG

A record 17.5% of consumers are paying  > $1,000 every month for their car:

More than 10% higher over the past three years.

The reason?

Car prices are about $9K more today than in 2021.

And even though buyers have doubled their down payments to $8K over the same time — it has only shaved $60 off of their monthly payments.

And as new car prices remain sticky — it’s hard to imagine this number not going up…

(Data source: Edmunds via Barron’s)

The California New Car Dealers Association is putting Volkswagen and Scout Motors in the hot seat over their direct-to-consumer sales model.

Along with the National Automobile Dealers Association, the group claims Scout, as a Volkswagen affiliate, is breaking state laws meant to protect franchise dealers.

Scout, meanwhile, insists it’s an independent brand and is already taking reservations for its EVs expected in 2027.

With legal threats looming and both companies standing firm, the clash highlights a growing battle over how cars will be sold in the future … (Go deeper: 1 min. read)

Smaller cars are making a strong comeback as the high costs of trucks and SUVs push buyers to rethink their options.

Sales of compact models like the Honda Civic and Nissan Sentra have surged by over 23% this year, while larger vehicles like midsize SUVs and pickups are losing ground.

With full-size SUVs averaging over $64,000 and midsize cars starting closer to $30,000, price-sensitive buyers are downsizing … (Go deeper: 1 min. read)

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Ford and GM are gearing up to contribute $1 million each — and vehicles — to President-elect Trump’s January inauguration, echoing their support for President Biden’s in 2021.

Other major players like Amazon, Meta, and Uber are reportedly joining the donor list as well.

Meanwhile, automakers are keeping a close eye on the incoming administration’s policies, from potential EV tax credit rollbacks to tariff changes, as they prepare for a shifting regulatory landscape … (Go deeper: 2 min. read)

Thanks for reading everyone.

— CDG