Prices Up, Prices Down, Prices WAY Down

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You may be getting a multitude of OOO messages, but not from us! Today we’re talking about declining vehicle prices consumers aren’t seeing. We also talk about a sub $20/mo EV lease, as well as Fisker’s clearance rack. 

Show Notes with links

The average price paid for new vehicles is set to drop for the first time since 2008, falling 3% year-over-year to about $45,000 in June, but rising interest rates are keeping monthly payments high.

• Monthly car payments have reached a record high of $740, compared to an average of $550 pre-pandemic, due to higher interest rates despite better deals
• As inventory continues to build, dealer promotions and financial incentives now average 5% off the sticker price, compared to 10% pre-pandemic
• John Patterson, owner of Hyundai, Kia, and Mazda dealerships in Southern California, notes a shift in buyer behavior: “We’ve seen customers who bought a premium car over the last few years coming back to reality.” Patterson emphasizes that higher interest rates are a significant factor in keeping many consumers away from dealer lots this year.

A Nissan dealer in Colorado is offering a seemingly too-good-to-be-true lease deal on the Nissan Leaf S model, making these EVs perhaps the most accessible EV on the planet. Tynan’s Nissan Aurora in Aurora, CO who has been family owned and operated since 1963 is leveraging Colorado’s generous state electric vehicle tax credit (which can be as much as $8000), an NMAC credit, and a $1,000 Nissan EV cash rebate. The lease deal is advertised at zero money down and only $19 per month.

• Buyers can either pay the $695 acquisition fee and $699 dealer handling fee upfront or roll them into monthly payments, making the total monthly payment $59 with fees.
• Over a 24-month lease, if you don’t exceed 20,000 miles, you could end up paying just $1,850 plus minimal electricity costs to drive a new Leaf.
• Using the average Leaf consumption rate, driving 20,000 miles would cost around $599 in electricity over two years at Colorado’s average rate of 12.28 cents per kWh.
• Originally, 15 units were advertised at this price but now there are 60 showing on the site with a “As Seen on YouTube” statement on the homepage

Fisker, the bankrupt electric vehicle start-up, is seeking court permission to sell its remaining 3,300 vehicles at an 80% discount to American Leasing, whose primary business is supplying vehicles to NYC Uber and Lyft drivers.

• Fisker filed for Chapter 11 bankruptcy in June after years of unprofitable operations.
• The proposed deal is valued at up to $46.25 million, with each car averaging about $14,000, down from the original $70,000 price.
• Some vehicles are in good condition, while others need repairs; they will be sold as-is.
• Fisker aims to sell 200 cars quickly to secure cash for payroll next month, but there is no guarantee the deal will be approved.
• Although warranties will

Hosts: Paul J Daly and Kyle Mountsier

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