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- š Used Car Prices Drop in 2024: Market Trends, Challenges in Thailand, and Import Restrictions for GM & Ford
š Used Car Prices Drop in 2024: Market Trends, Challenges in Thailand, and Import Restrictions for GM & Ford
TL;DR Used car prices are droppingāfinally! But watch out for Thailandās debt disaster, potential GM and Ford import bans, and Fiskerās customer service flop. The road ahead is bumpy, and youāll need a sturdy set of tires to navigate it!
Today's Email
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šµļø iSeeCars Study Reveals Used Car Price Drops
š Used Car Prices Are Dropping
Used car prices for models aged one to five years have decreased by 4.7% in 2024, with the average price now at $32,672. While this figure remains significantly higher than pre-pandemic levels, it's a welcome shift for buyers looking for better deals.
š Better Mileage, More Value
Buyers are not only seeing lower prices but also benefiting from vehicles with fewer miles. The average mileage for used cars is now 39,109, down 2.8% from last year. This means shoppers can find more reliable options that have seen less wear and tear.
š° Affordable Options on the Rise
Notable reductions in prices are observed across popular models like the Tesla Model 3 and Jeep Grand Cherokee. Additionally, there are now three models available under $20,000, marking a positive trend for used car shoppers navigating an evolving market landscape.
š Thai Auto Industry Blues: Debt & Decline
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Thailandās $53 billion auto industry faces a crisis with rising household debt and declining demand for traditional vehicles, leading to significant production cuts and job losses.
Debt Crisis: Household debt nears $500 billion, limiting consumers' ability to finance new car purchases.
Production Drop: August saw a 20.6% decline in production, with domestic sales at a 14-year low.
Job Losses: Parts supplier Techno-Metal operates at 40% capacity, reducing its workforce from 1,200 to 900.
Government Response: Authorities are intervening to reverse the industry's downward trend.
š¤ GM & Ford: Stopping Imports from China? Whatās the Deal?
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A proposed U.S. rule could force GM and Ford to stop importing vehicles from China. Letās dive into the implications for your dealership.
Wait, so GM and Ford canāt import cars from China? What gives?
That's right! A new rule from the U.S. Commerce Department aims to curb imports due to concerns over Chinese software and hardware in vehicles. This would impact popular models like the Buick Envision and Lincoln Nautilus, which are assembled in China. If GM and Ford canāt navigate this new rule and secure specific authorizations, they may have to halt production for U.S. sales altogether. This could create a significant gap in inventory for your dealershipāgreat news for competition, right?
Isnāt this just another example of government overreach?
Well, thatās one way to look at it! The government is emphasizing security policies in an increasingly tense global automotive landscape. While some may see this as a necessary measure to protect consumer data and safety, others may argue it stifles market competition and innovation. After all, if the big players canāt sell their cars, what does that mean for your bottom line?
ā” Charge Up! U.S. EV Incentives on the Horizon
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The U.S. Treasury is proposing tax credits for EV charger installations to promote clean vehicle adoption and bolster energy security as part of the Inflation Reduction Act.
Tax Credits: Individuals can claim up to $1,000; businesses can receive up to $100,000 for installations in low-income areas.
Enhanced Benefits: Businesses paying prevailing wages and using apprentices can qualify for higher credits.
Goal: The initiative aims to lower transportation costs and strengthen the clean vehicle supply chain.
Economic Impact: This plan is part of broader efforts to make EVs more affordable and accessible to Americans.
š± Hyundai, Kia & Samsung: Is This Tech Partnership Even Necessary?
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Hyundai and Kia are teaming up with Samsung to create a next-gen infotainment system. But do we really need another gadget in our cars?
Arenāt we already inundated with tech in vehicles? Whatās the point?
Youād think so! But this partnership aims to enhance the integration of software-defined vehicles (SDVs) with smartphones, targeting a user-centered experience. By linking to Samsung's SmartThings app, youāll be able to find your car and access personalized services. It sounds fancy, but does your customer really need to find their car in a crowded lot? Aren't they just going to call you for help anyway?
Will this make me sell more cars or just create more headaches?
Good question! While the goal is to enrich the mobility experience, more tech can also lead to more troubleshooting for you and your team. Expect increased training needs for staff and potentially more service calls if these systems donāt work as intended. And while shiny new tech is great for attracting buyers, remember that your customers may just want a reliable vehicle that doesnāt require a manual thicker than a novel!
š Fisker Owners Left in the Lurch: A Recap of Broken Promises
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Oh, how the mighty have fallen! Fisker has decided to take a giant step back on its earlier commitment to help its customers. Now, owners of the Fisker Ocean are faced with the lovely surprise that theyāll have to foot the bill for labor costs on recall repairs. Thanks, Fisker! Sure, theyāll provide the necessary parts at no charge, but isnāt that the bare minimum? Meanwhile, theyāre still scrambling to find funds to cover labor expenses, leaving customers high and dry.
This about-face comes only after a wave of customer outrage and some serious media scrutiny. Itās almost as if Fisker didnāt think people would notice when they pulled the rug out from under their owners. And while the National Highway Traffic Safety Administration keeps a watchful eye on this unfolding disaster, itās hard not to shake our heads at how poorly Fisker is managing its relationships. Our hearts go out to the consumers stuck in this mess, but itās clear that Fisker is more interested in covering their own rear than in standing by the people who believed in their brand.
š¢ Tesla: Good and Bad
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Good News for Tesla: Progressing on Expansion Plans
Tesla is moving forward with its expansion at Gigafactory Berlin, actively clearing land for construction of a three-kilometer railway access road. This step is crucial for enhancing operations at the factory, which is expected to boost production capabilities for future models. Tesla has emphasized the need for nighttime work to ensure the site is prepared for upcoming developments. As CEO Elon Musk recently noted, āWe need to ensure weāre ready to meet increasing demand.ā
Bad News for Tesla: Facing Local Opposition
However, this progress comes amid significant backlash from local residents and activists. A vote against the project raised environmental concerns about clearing over 100 hectares of forest, prompting protests from the āStop Teslaā initiative, which has occupied the area. Additionally, the site has been hindered by complications, including the need for WWII bomb removals. The tension between Teslaās ambitions and local opposition underscores the challenges the company faces in its expansion efforts.
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