New car affordability dips in Nov., Mercedes-Benz brings back regional support for dealers, Toyota slashes 2025 bZ4X prices

Hey everyone. Today is the day (!)

My episode of the Car Dealership Guy Podcast with Ernie Garcia Jr., CEO and co-founder of Carvana, the auto retailing powerhouse redefining digital car sales — is now LIVE.

Learn all about the company’s dramatic turnaround, how Carvana’s gross profit per unit (GPU) continues to break records, the future of selling used cars online, and much more.

Now streaming across YouTube, Spotify, and Apple.

— CDG

Auto loan rates have dropped below 7% — the first time in six quarters:

The average new car APR was down to 6.8% in November:

And average used APRs are down too — now sitting at 11% — 0.5% lower than in June…

A very encouraging step in the right direction.

(Data source: Edmunds)

1. New car affordability dips as rising prices outpace discounts

New vehicle affordability took a hit in November as rising prices outpaced the benefits of lower interest rates and higher incentives, according to Cox Auto.

By the numbers:

• The average new car transaction price climbed to $48,724, while monthly payments crept up to $756, straining consumer budgets.

• Despite incentives jumping over 50% year-over-year and loan rates hitting a 15-month low, buyers are still stretching to afford new cars.

With inventory levels improving and competition intensifying, automakers are walking a fine line to keep demand flowing … (Go deeper: 2 min. read)

2. Mercedes-Benz switching back to regional dealer support

Driving the news: Starting in 2025, the automaker will bring back regional brand representatives to work more closely with local dealerships — a shift away from the centralized approach it adopted in 2022.

The move comes as Mercedes grapples with global sales and profit declines, though North American sales are bucking the trend with a 29% Q3 increase.

By focusing on regional dynamics, Mercedes hopes to strengthen its U.S. operations and provide localized support to continue fueling growth … (Go deeper: 3 min. read)

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3. Toyota slashes bZ4X price by $6,000 for 2025 model year

Toyota’s bZ4X is getting a reboot for 2025 with a lower price, new tech, and fresh trims aimed at staying competitive in the crowded EV market.

The good news: The base price has dropped by $6,000 to $38,465, with the Limited trim seeing a similar cut, making the SUV more accessible as some consumers balk at higher EV prices.

But the bZ4X still lags behind top competitors like Tesla’s Model Y when it comes to range. The electric SUV will have 252 miles for the front-wheel drive models and 222-236 miles for AWD trims … (Go deeper: 1 min. read)

• Did General Motors limit Its future by walking away from Cruise?

• Colorado’s state EV fast charger program adds 33 highway sites.

• Judge orders UAW to produce records sought in Fain corruption probe.

• Germany’s auto giants were already reeling. Now, Trump wants to turn them into American companies.

• China resident who stole Tesla trade secrets gets 2-year U.S. sentence.

Thanks for reading everyone.

— CDG