Automotive weekly roundup: Falling new vehicle prices, rising negative equity, Chevy Blazer EV is back

Earlier this week: New car prices took another dip, nudging closer to their pre-pandemic norms, especially for electric vehicles, which saw the sharpest declines. At the same time, the used car market hit a snag with a record-high surge in negative equity, a hangover from the pandemic’s price spikes. Meanwhile, General Motors reignited excitement around its 2024 Blazer EV, announcing big price cuts. Amidst these ups and downs, Toyota shone brightly, scooping up accolades for resale value and proving its enduring appeal. Here’s a closer look at these top stories and more headlines to stay on top of this week in automotive industry news.

1. New vehicle prices continue falling in February as sales pace accelerates

New vehicle prices dropped again in February, progressing toward pre-pandemic averages while sales and inventory improved. According to Cox Automotive, the average new vehicle transaction price in February was $47,244, 2.2% lower than last year but still higher than before the COVID-19 pandemic. The month-over-month change was negligible, with prices coming in only 0.3% behind January. While the declines were slight for most of the market, electric vehicle prices deflated faster than in other segments, falling 13% compared to early 2023 to $52,314. Read More

2. Negative equity sets new record in previous-quarter’s used vehicle market

Negative equity in the used vehicle market grew in the final months of 2023, underscoring normalizing trends in the preowned segment. Edmunds noted high levels of trade-ins worth less than the outstanding balance of the owner’s car loan in its fourth quarter used vehicle report. Roughly 20% of new vehicle sales involving a trade-in had negative equity during the October-through-December period, the highest level seen since 2021. The most commonly affected trade-in buyers were those who purchased their model during the COVID-19 pandemic when car prices were drastically inflated due to inventory shortages. Read More

3. Toyota dominates Kelley Blue Book’s 2024 Best Resale Value Awards

Kelley Blue Book recently announced the winners of its 22nd annual Best Resale Value Awards. The awards recognize the top 10 cars, brands, and categories expected to retain their value for the first five years of ownership. This year, Toyota emerged victorious again, winning the Best Resale Value Brand award for the eighth time. Previously, the automaker won the same award in 2014, 2017, 2018, 2019, 2021, 2022, and 2023. Read More

4. Tesla Autopilot, 9 other assisted-driving systems receive “poor” rating from IIHS

BMW is offering electric vehicle customers from other brands a $1,000 discount if they purchase select models until April 1, 2024. For the next three weeks, the automaker’s new “2024 BEV Conquest Program,” available in Western states, will award buyers or lease-holders of any Tesla, Rivian, Polestar, Lucid, Porsche, Mercedes-Benz, and Audi models who purchase an eligible BMW product with a $1,000 cash-back offer. The discount is also open to drivers of the Ford Mach-E and Volkswagen ID.4, according to Cars Direct, who broke the story Monday, March 4. Only the BMW i4, i5, i7, and iX are available for regional promotion. Read More

5. GM resumes 2024 Blazer EV sales, slashes starting price by over $6,000

General Motors (GM) has resumed its 2024 Blazer EV sales after an 11-week halt to fix software flaws. In an effort to boost sales, the automaker has reduced the starting price of their vehicles to $50,195, which is $6,520 lower than the original price. Moreover, the car is now fully eligible for a $7,500 federal tax credit. Earlier, GM had to stop its EV sales in late December due to media and customer complaints of issues with the infotainment and charging systems, including the vehicle’s inability to charge its battery. Read More

6. Balancing growth to maximize dealership competitiveness — Jeff Dyke | Sonic Automotive

In 2023 Sonic Automotive, one of the nation’s largest automotive retailers, saw an all-time record annual revenue of $14.4 billion despite some challenges, like the closing of its Northwest Motorsport store locations. Joining us on Inside Automotive to take a look at the full-year earnings numbers is the President of Sonic Automotive, Jeff Dyke. Watch Here

7. New vehicle prices are falling. Why aren’t dealers worried? — Brian Moody | Cox Automotive

On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Brian Moody, executive editor at Cox Automotive. Moody has helped shed light on the numerous factors impacting dealers in today’s landscape and how even the slightest shifts in consumer preferences can have surprising consequences. Now, he delves into the topic of new vehicle prices and what this means for the retail automotive sector. Watch Here

8. How to fight the ‘boy’s club’ mentality in the automotive sector — Veronica Dunford | Women in Automotive

Welcome to the inaugural episode of Women Driving the Industry, a show where leaders from across the automotive landscape discuss their professional experiences and shed light on the challenges women continue to face in their careers. Host Shyann Malone is joined by Veronica Dunford, industry veteran and partner of Women in Automotive, an organization advocating for better gender inclusivity within the car business. Together, they discuss the difficulties Dunford encountered on her path to becoming a leader and why organizations like Women in Automotive are crucial to the industry’s long-term success.Watch Here

9. How family ties and customer care can fuel success – Keane Storey | Chapman Auto Group

Welcome to Kain & Co., where we dive deep into the heart of the automotive industry with engaging stories and insightful conversations. On today’s episode, we’re thrilled to feature Keane Storey, a key player in business development at the esteemed Chapman Auto Group in Philadelphia. Together, we uncover the secrets behind his enduring success, explore the impact of family dynamics in business, and reveal how he mastered the art of customer satisfaction in a competitive market. Watch Here

10. Electric vehicle marketing may be easier than you think — John Fitzpatrick | Force Marketing

On this episode of Inside Automotive, host Jim Fitzpatrick is joined by John Fitzpatrick, president and CEO of Force Marketing. Force Marketing is an industry-leading provider of automotive marketing solutions, one that has helped dealers navigate the onset of digital media and changing consumer preferences. Now, Fitzpatrick discusses strategies to compete for electric vehicle buyers and dominate in this evolving landscape. Watch Here