Analysts say affluent consumers are taking advantage of favorable interest rates to purchase bigger, more feature-heavy vehicles during the pandemic

SANTA MONICA, Calif., Oct. 1, 2020 /PRNewswire/ — Consumers in the market for a new car during the pandemic aren’t shying away from making bigger down payments than usual. According to the car shopping experts at Edmunds, the average down payment for a new vehicle climbed to $4,457 in the third quarter, compared to $3,891 last quarter and $4,045 a year ago. Edmunds data also shows that the average transaction price (ATP) for new vehicles rose significantly in the third quarter. Edmunds estimates that the ATP in Q3 climbed to $39,303, compared to $38,893 last quarter and $37,207 in Q3 of 2019.

Car-buying platform Edmunds.com serves nearly 20 million visitors each month. With Edmunds.com Price Promise(R), shoppers can buy smarter with instant, upfront prices for cars and trucks currently for sale at over 10,000 dealer franchises across the U.S.
Car-buying platform Edmunds.com serves nearly 20 million visitors each month. With Edmunds.com Price Promise(R), shoppers can buy smarter with instant, upfront prices for cars and trucks currently for sale at over 10,000 dealer franchises across the U.S.

Due to increases in average down payments and average transaction prices for new vehicles, Edmunds data shows that average loan terms and monthly payments decreased slightly in the third quarter compared to the second quarter. The average annual percentage rate (APR) for new vehicles saw a small lift, hitting 4.6% in Q3 compared to 4.2% in Q2.

“It’s clear that consumers who are purchasing vehicles right now are feeling quite secure in their financial position despite the pandemic. The discouraging unemployment numbers we’re seeing across the country likely aren’t reflective of the Americans in the new car market,” said Jessica Caldwell, Edmunds’ executive director of insights. “New-car shoppers are putting down more money and taking advantage of continued  low interest rates to upsize either to bigger vehicles or vehicles with more amenities.”

Edmunds analysts note that some of

Ford (F) has issued a recall for more than 700,000 vehicles because they may have a backup camera issue that could cause the screen to go black or distort.

The automaker said that several 2020 vehicles are affected by the recall, including Ford Explorers, F-150s, Mustangs, Transits, Super Duties, Expeditions, Escapes, Rangers, and Edges as well as Lincoln Corsair, Nautilus, and MKX models.

The affected Ford Explorers were built at the Chicago Assembly Plant from Nov. 16, 2019 to May 18, 2020, while the F-150s were built at the Dearborn Assembly Plant in Michigan from Oct. 26, 2019 to May 18, 2020, and the Kansas City Assembly Plant in Missouri from Nov. 2, 2019 to May 18, 2020.

Ford’s recalled Mustangs were built at the Flat Rock Assembly Plant in Michigan from Oct. 28, 2019 to May 20, 2020 while the Ford Transits were built at the Kansas City Assembly Plant from Oct. 28, 2019 to May 20, 2020.

The affected Ford Super Duty trucks were built at its Kentucky Truck Plant from Nov. 3, 2019 to May 18, 2020, and its Ohio Assembly Plant from Oct. 30, 2019 to May 18, 2020. The Ford Expeditions affected by the recall were built at the Kentucky Truck Plant from Oct. 30, 2019 to June 22, 2020, and the Ford Escape models recalled where built at the Louisville Assembly Plant in Kentucky from Nov. 5, 2019 to May 18 2020.

Ford’s recalled Ranger trucks were built at the Michigan Assembly plant from Dec. 9, 2019 to May 19, 2020, and the Ford Edge vehicles were built at the Oakville Assembly Plant in Ontario, Canada from Nov. 13, 2019 to May 26, 2020.

Ford also recalled the Lincoln Corsair built at its Louisville Assembly Plant from Nov. 14, 2019 to May 18, 2020,

BEIJING, Sept 29 (Reuters)Toyota Motor Corp’s 7203.T annual global sales of electrified vehicles could reach 5.5 million in 2025, five years earlier than initially planned, a senior company executive said at an industry conference on Tuesday.

Toyota in 2017 had announced a plan to sell 5.5 million electrified vehicles, including 4.5 million of hybrid and plug-in hybrid vehicles and 1 million electric and hydrogen fuel-cell vehicles, by 2030.

Seiya Nakao, chairman and president of Toyota China’s engineering and manufacturing, said auto electrification was progressing faster than expected and the top Japanese automaker thinks it can reach the target sooner.

A China-based Toyota spokesman said 2025 was not a formal company target now.

Toyota sold more than 10 million vehicles globally last year, including around 2 million electrified vehicles.

(Reporting by Norihiko Shirouzu and Yilei Sun; Editing by Himani Sarkar)

(([email protected]; +86 10 66271262; Reuters Messaging: [email protected]))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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