The check engine light flickers on again, and this time the mechanic’s estimate makes your stomach drop. You need a new transmission, and it will cost at least $5,700. It’s a familiar scenario for someone who’s owned their car for years. The car’s paid off, but now it needs one repair after another, each one getting increasingly expensive. So do you keep pouring money into an aging car or take on a monthly payment for something newer? It’s a dilemma many drivers grapple with, especially now. Repair cos ...

As if 2025 wasn't an odd enough year for car buyers, Cox Automotive data suggests that 2026 is already revealing an affordability issue for new vehicles. Tariffs and the threat of rising prices cajoled countless car buyers into finally making the big purchase, leading to the strongest market in years. U.S. 2025 new-vehicle sales GM: 2.83 million vehicles (+5.1% year over year); 17.3% market share Toyota: 2.52 million vehicles (+8.4% YoY); 15.5% market share Ford: 2.18 million vehicles (+5.6% YoY); 13 ...

Core Inflation Data - The Consumer Price Index (CPI) headline rose by 0.2%, resulting in an annual rate of 2.4%, down from 2.7% in December [1] - Core CPI increased by 0.3%, which is higher than the January figure of 0.2%, but aligns with market forecasts, showing a year-over-year increase of 2.5%, down from 2.6% in December [2] Food and Energy Prices - Food prices rose by 0.2% during the month, a significant decrease from the 0.7% increase observed in December [3] - Gasoline prices decreased by 3.2%, contributing to the softer CPI numbers, while used car prices fell by 1.8% [3] - New car prices saw a slight increase of 0.1%, and apparel prices remained unchanged with a 0.3% increase, similar to the previous month [3]

New Car Transaction Situation - In December, Beijing's new car transactions reached 73,700 units, a month-on-month increase of 14.7% but a year-on-year decrease of 2.98% [3] - From January to December, the cumulative new car transactions in Beijing totaled 681,400 units, a year-on-year decline of 2.57%, underperforming the national sales growth by 9.2 percentage points [3] Imported Car Sales Situation - In December, Beijing's imported car transactions were 2,441 units, showing a month-on-month growth of 17.7% but a year-on-year decline of 23.29% [7] - The total imported car transactions in Beijing for the year reached 28,000 units, a year-on-year decrease of 21.83% [7] New Energy Vehicle Sales Situation - In December, Beijing's new energy vehicle transactions totaled 49,800 units, with a month-on-month increase of 11.56% and a year-on-year increase of 18.56%, accounting for 67.59% of total new car transactions [12] - For the entire year, new energy vehicle transactions in Beijing reached 422,200 units, a year-on-year growth of 17.95%, representing 61.97% of total new car transactions [12] Used Car Transaction Situation - In December, Beijing's used car transactions were 57,000 units, reflecting a month-on-month increase of 2.08% but a year-on-year decrease of 2.54%, with a new-to-old car ratio of 1:0.77 [15] - The cumulative used car transactions in Beijing for the year were 664,900 units, showing a year-on-year growth of 0.28%, with a new-to-old car ratio of 1:1 [15] December Market Overview - December saw a peak in new car sales at 73,700 units, influenced by policy changes regarding scrapping and replacement subsidies, despite a year-on-year decline [20] - The new energy vehicle market in Beijing solidified its dominant position, achieving a market share of 61.97% for the year, with significant growth driven by policy support [20] - The imported car market faced a continuous decline, with a total market share dropping below 4.11%, marking a historical low due to competition from domestic high-end brands [20]

KEY TAKEAWAYS Under a new tax break from the "One Big, Beautiful Bill," taxpayers will be able to deduct part of the interest they paid on a car loan in 2025. The vehicle must be new and have undergone final assembly in the United States. The car loan interest deduction is available to itemizing and non-itemizing taxpayers, and to those who make $150,000 or less ($250,000 for joint filers). If you purchased a new car in 2025, you may be able to deduct part of your loan payment from your taxes. A ...

Core Insights - The average cost of a new car has surpassed $50,000 for the first time, reaching $50,080 in September [4] - Wealthier households are driving the current auto market, while lower- and middle-income households are more cautious due to inflation [5][4] - The average loan term for car purchases has increased to 69 months, with 22% of loans extending to a record-high of 84 months [3] Group 1: Loan Terms and Costs - Longer loan terms, while initially attractive, can lead to significantly higher total interest costs, with an 84-month loan costing $5,326 more in interest compared to a 48-month loan [6] - Monthly payments vary by loan term: a 48-month loan has a payment of $1,078 with total interest of $6,724, a 60-month loan has a payment of $891 with total interest of $8,463, and an 84-month loan has a payment of $679 with total interest of $12,050 [7] - The trend of longer loans is a response to rising car prices, making it difficult for buyers to budget effectively [3] Group 2: Budgeting and Financial Strategies - Buyers are advised to keep car costs within 10% of their take-home pay and consider delaying purchases until financial conditions improve [11] - Strategies to pay off loans faster include making biweekly payments, which can save on interest and reduce the loan term by 13 months [9] - Refinancing options may be available for those with improved credit scores, although upfront fees should be considered [12]

Core Insights - The new car market is experiencing elevated prices, with the average transaction price reaching $48,422 in April 2025, indicating a slight increase compared to the previous year [1] - There is a significant price gap between new and used cars, with new cars being over 29% more expensive than 3-year-old used cars compared to April 2020 [2] - The shift in consumer behavior is evident, as nearly 19.2% of new car buyers are opting for luxury brands, a notable increase from 11-12% pre-pandemic [6] Pricing Dynamics - The Manufacturer's Suggested Retail Price (MSRP) averaged around $50,408 in April 2025, suggesting that dealers are offering discounts to move inventory [3] - Factors contributing to the rising costs of new cars include government compliance, fuel economy standards, safety equipment, and advanced technologies [8] - Tariffs on overseas parts and vehicles are also impacting the pricing of certain models [8] Consumer Behavior - The high prices of new cars are pushing consumers towards used cars or causing them to retain their current vehicles [5] - There is a perception of a technology plateau in new cars, as many features are becoming standard across both new and slightly used vehicles, potentially reducing the incentive to purchase new [9] - Automakers are recognizing the need to find ways to lower prices, as future models may not offer significantly different technology compared to older models [11][12]

Core Insights - The average monthly payment for new cars reached $772 in Q4 2025, while used cars averaged $570, indicating a significant increase in car ownership costs [3][5][6] - The average cost of new cars is approximately $43,759, contributing to a record 20.3% of new car payments exceeding $1,000, up from 18.9% in 2024 [2][5] - Auto loan interest rates are projected to decrease slightly in 2026, but overall costs of car ownership remain high due to insurance and maintenance expenses [4][6] Financing Trends - Banks are the primary source for auto loans, accounting for 31.30% of financing, followed by credit unions at 23.72% and captive financing at 18.98% [1] - Longer loan terms are becoming more prevalent, with 20.8% of new car loans extending to 84 months or longer [2][12] - Average loan amounts for new cars have increased, with super prime borrowers averaging $40,534 and prime borrowers at $44,480 [13] Insurance and Maintenance Costs - The average cost of full coverage car insurance is about $225 per month, while minimum coverage costs around $68 [1] - The overall cost of car ownership is elevated due to high insurance and maintenance prices, alongside loan costs [6][4] Payment Calculations - Monthly car payments are influenced by the loan amount, annual percentage rate (APR), and loan term, with average payments currently at $748 for new cars and $532 for used cars [7][8] - Making a down payment can significantly reduce monthly payments, with average down payments reported at $6,856 for new cars and $4,219 for used cars [17]

Core Viewpoint - Stellantis plans to increase price cuts on new cars sold in France to boost sales volumes in its largest European market [1] Group 1 - The initiative is led by Stellantis France chief Xavier Duchemin, indicating a strategic move to enhance competitiveness in the French automotive market [1] - The decision comes as part of a broader strategy to recover from declining sales and improve market share in France [1]

Core Insights - Average car loan rates have decreased by 0.5 percentage points since September, reaching their lowest level since October 2022, but monthly payments continue to rise [2][10] - The average monthly payment for a new car has reached a record high of $781, despite lower loan rates [3][10] Loan Amounts and Payments - The average amount financed for a new car purchase in December 2025 was $44,361, which is over 4% higher than the previous year [5] - Monthly payments for used cars have also increased, with an average payment of $568 in December 2025, up by $14 or 2.5% from the previous year [8][10] Loan Terms and Interest Rates - A growing number of customers are opting for longer loan terms, with nearly 21% of new-car loans having terms of 84 months or longer in Q4 2025, compared to less than 18% a year earlier [6] - The average annual percentage rate (APR) for new-vehicle purchases has only decreased by 0.1% from 6.8% in late 2024 to 6.7% at the end of 2025, indicating limited relief for borrowers [7] Market Dynamics - The increase in car prices and larger loan balances is offsetting any benefits from the decline in loan rates, leading to higher monthly payments [10] - Customers are facing challenges in finding competitive promotional rates, with only 3.1% of new-vehicle loans offering a 0% rate in Q4, down from 3.3% in Q3 [7]