The trust gap with auto insurers, new car pricing pressures, used EV deals on the rise

Hey everyone. We’ve got a huge guest on the podcast tomorrow — maybe the biggest one ever.

I sit down with Randy Parker CEO of Hyundai America for a deep dive into all things Hyundai and talk about how the brand is preparing for the future of the industry. You don’t want to miss this one. Follow along with the CDG podcast here.

— CDG

1. Why used EVs are some of the best deals in the auto industry

Used electric vehicles are now 8.3% cheaper on average than used gas-powered cars, reflecting the impact of price cuts and intensifying competition in the fledgling segment.

Why this matters: Used EVs are now one of the cheapest options for car buyers, with price declines showing little likelihood of stalling. Conversely, ICE vehicle prices have largely stabilized despite the increase in demand, possibly making them a less competitive option in a market where affordability is key … Read more

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2. High inventory continues to push new car prices down

In a classic display of supply and demand, higher new car inventory levels at the beginning of May pushed down average transaction prices (ATP) year-over-year.

Big picture: Although statistically unchanged from April ($48,368) the APT for May was $48,389, down 0.9%, year-over-year. 

What’s more: An increase in incentives also made new car more affordable in May … Read more

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3. Over 50% of consumers don’t trust their auto insurance company

Auto insurance continues to be a sticking point for car owners in the U.S. and with premiums rising, trust is eroding.

Context: According to the latest J.D. Power 2024 U.S. Auto Insurance Study, these sky-high premiums do not seem to be coming down anytime soon … Read more

• General Motors adjusts profit and EV forecast, ramps up Cruise investment.

• EU announces 38% tariffs on Chinese EVs.

• Tesla shareholders prepare to vote this week on Musk pay package.

• Ford CFO worried over growing inventory across car industry.

• Stellantis launches massive SUV recall over stability issues.

Thanks for reading everyone.

— CDG