Update on car loan rates, top stolen vehicles of 2023, Toyota's slow depreciation

Hey everyone. Do you (or someone you know) have a strong eye for design and next-level creativity?

CDG Media’s design team is growing fast, and I’m looking for a talented graphic designer to join the crew.

Think you fit the bill? Give me a shout.

— CDG

1. Average new and used car loan rates hold steady in April

Top line: New data from Edmunds shows car loan rates have stalled to similar levels seen in March.

By the numbers:

• Typical new car interest rates steadily increased each month from January to March but remained unchanged in April.

• Average new car loan rates ended April at 7.2%, below the high of 7.6% in October 2023.

• Used car loan rates fell 0.3% from March to April, and are now at 11.6%.

• In April, New Mexico had the highest new car rate at 8.52%. Nevada, Alaska, Mississippi, and Georgia also exceeded 8% APR.

• Mississippi had the highest used car rate at 14.33%, followed closely by Alabama (13.36%), Georgia (13.19%), and Louisiana (13.28%).

• Texas, Montana, North Dakota, and Wyoming have 25% or more of consumers carrying a $1,000 monthly auto payment. The average used car loan rate in these states is over 12%.

What’s more: Borrowers who financed vehicles in 2022 or early 2023 are at a higher risk of negative equity. Basically — negative equity occurs when you owe more on your car loan than the car is actually worth.

• The average negative equity for trade-ins reached $6,064 in Q4 2023.

• Car buyers who bought during the pandemic are now stuck with lower-than-expected trade-in values, further squeezing their buying power.

What we’re watching: Fighting inflation is proving trickier than expected for the Federal Reserve. While they raised interest rates to a multi-decade high in 2023, progress on lowering inflation stalled in 2024. This has left the Fed unsure about when or if rates will come down this year.

Become an automotive insider in just 5 minutes.

Get the weekly email that delivers transparent insights into the car market.

Join 62,000 others now, it's free:

2. Kia/Hyundai top 2023 auto thefts

What's happening: Hyundai and Kia models are now the most stolen vehicles in the country, according to a new report from the National Insurance Crime Bureau (NICB). These cars have dethroned full-size pickup trucks, which have dominated the top 10 most stolen vehicles list for years.

By the numbers:

Hyundais and Kias claimed 6 out of the top 10 spots, with the Hyundai Elantra topping the list as the most stolen car in the country with 48,445 thefts in 2023.

Here's a further breakdown of the top 10:

1. Hyundai Elantra (48,445 thefts)

2. Hyundai Sonata (42,813)

3. Kia Optima (30,204)

4. Chevrolet Silverado 1500 (23,721)

5. Kia Soul (21,001)

6. Honda Accord (20,895)

7. Honda Civic (19,858)

8. Kia Forte (16,209)

9. Ford F150 Series Pickup (15,852)

10. Kia Sportage (15,749)

The reason? The rise in Hyundai and Kia thefts likely stems from a now-fading social media trend, the "Kia Boyz" challenge, which showed TikTok users how to steal these vehicles with just a USB drive.

The bottom line: 2023 saw another record year for car thefts, with over 1 million vehicles stolen nationwide. While the trend might be slowing down, Kia and Hyundai owners might want to consider stronger security measures.

The Auto Hauler Exchange has revolutionized the way vehicle haulers and vehicle shippers collaborate. AHX's B2B marketplace connects vehicle haulers directly to shippers in a frictionless manner.

The Exchange helps vehicle haulers maximize their capacity while limiting empty miles. The Exchange is the first true B2B marketplace of its kind in the vehicle logistics industry.

By connecting carriers and shippers directly, carriers can save time and choose which opportunities fit their needs each day.

At the same time, shippers can rest assured that their vehicles are being moved by qualified, vetted carriers who fit their vetting program.

The Auto Hauler Exchange has democratized the vehicle logistics industry by eliminating the middleman and connecting shippers directly to available carriers.

Get off the vehicle hauling roller coaster today with Auto Hauler Exchange.

3. Toyota: A top pick for slow depreciation

Big picture: A CDG analysis of Black Book data suggests Toyota vehicles are experiencing relatively low depreciation compared to the broader market.

Vocab time: Vehicle depreciation refers to the rate at which a vehicle loses its value over time. Depreciation rates can vary based on factors such as the make and model of the vehicle, market conditions, and individual ownership.

State of play: As of mid-May 2024, The Manheim Used Vehicle Value Index, which tracks changes in used vehicle prices, stood at approximately 199.1, down 20% from its peak of 250 in January 2022.

What it means: Think of the Manheim Index as a used car price meter. It was way up in early 2022, meaning used cars were more expensive and depreciating very slowly. Now, the meter is moving down, suggesting used car prices are on a downward trend and depreciation might be picking up a bit.

How does Toyota stack up?

An analysis of three of the best-selling Toyota models from 2023 (RAV4, Corolla, Highlander) reveals their depreciation performance compared to their respective vehicle segments.

• The RAV4, a popular small crossover SUV, experienced only 7.8% depreciation from October 2023 to April 2024. This outperforms the average depreciation of 11% seen in the small crossover/SUV segment.

• The Corolla, a compact car, saw a 15% decline in value — lower than the 20% average depreciation observed in the small car segment.

• The Highlander, a mid-size SUV, maintained its value well with a depreciation rate of 11%. This compares to the 14% depreciation average for large crossover/SUVs.

The bottom line: In a market full of uncertainty, choosing a car with a reputation for slow depreciation, like Toyota, can be a strategic investment and minimize the financial hit when it's time to sell.

• Federal safety regulators have discovered nine more incidents that raise questions about the safety of Waymo’s self-driving vehicles.

• Nissan thinks it can cut the cost of EV parts by 10% by shifting to gigacasting for large aluminum parts.

• Tesla has launched a rare new paint color, Lunar Grey, as a $2,500 option on new Model S and Model X vehicles.

• The United Auto Workers union is challenging the results of last week’s organizing vote of Mercedes-Benz workers in Alabama.

• Survey finds consumers are more likely to click on vehicles with high-quality photos.

We’ve got tons of great jobs hitting the CDG Job Board right now. Here are some standouts for anyone looking for their next move.

• Are you an expert in dealership financials? HGreg is seeking a Senior Controller near Palmetto Bay, FL.

• Interested in how EVs work at the wholesale level? Plug is looking to fill two business development roles.

• More comfortable inside the dealership? Tom Whiteside Chrysler Dodge Jeep Ram has 5 open positions, including technicians, engineers, and sales associates.

Looking to hire? Add your roles today—it’s 100% free.

Thanks for reading everyone.

— CDG