In recent years, automotive recalls have become almost commonplace. Yet, when an automotive giant like Ford faces not one, but two investigations by the National Highway Traffic Safety Administration (NHTSA) into the adequacy of their recall remedies, it warrants concern. Here’s the latest on Ford’s recall investigation, and how you can check if your car is impacted.
Ford Focus Recall Under Scrutiny
Back in October 2018, Ford issued a massive recall for over 1.2 million 2012-18 Ford Focus sedans. The prescribed solution was for dealers to reprogram the powertrain control module and, where necessary, replace the canister purge valve.
However, a second recall was initiated in July 2019. This covered approximately 57,000 2012-14 and 2017 Focus sedans, which, although included in the 2018 recall, did not get the intended powertrain control module update.
Now, the NHTSA is probing whether Ford’s recall solutions effectively addressed the underlying problem. Auto News reports that they’ve received 98 complaints from consumers regarding failure of the canister purge valve in the 2012-18 Focus models. Some of these vehicles had already undergone the recall remedy, whereas others had never been recalled but displayed the same defect. This has raised suspicions that Ford isn’t adequately addressing recalls. Whether this has been due to Ford’s internal policy or mere accident is up for debate.
A New Ford Recall Impacts the EcoSport
A separate investigation is now looking into the 2018-21 Ford EcoSport vehicles. This came in the wake of 95 consumer complaints about engine failures due to a sudden loss of oil pressure. In a particularly concerning report, a vehicle owner stated the oil light came on even when the oil was full, leading to engine malfunction. This isn’t a cheap fix, either. The severity of the issue is such that it often requires a complete engine replacement.
Ford Leads in Recalls and Investigations
In response to the unfolding events, Ford spokesperson Maria Buczkowski assured that Ford is actively cooperating with the NHTSA’s inquiries.
Recalls, although common, are usually decisive and efficient solutions to potential safety risks. What makes this situation exceptional is the frequency of Ford’s recalls. Not only has Ford topped the recall charts for the past three years, but 2023 alone has seen the company issue 44 recalls, affecting a staggering 4.6 million vehicles.
Is Ford’s recall a big deal? This is not the first, but the second time that Ford has faced an official NHTSA recall investigation this year. Automotive News reports that in August, the NHTSA announced that it was looking into Ford’s handling of a recall for 2022 Ford Mustang Mach-E electric SUVs. The 2022 recall was meant to address sudden power loss in 50,000 Mustang Mach E’s.
These five automakers have the most recalls in 2023:
Ford (44 recalls)
Chrysler (34 recalls)
BMW (22 recalls)
Mercedes-Benz (18 recalls)
Nissan (18 recalls)
According to new NHTSA stats, Ford issued 67 recalls in 2022. In 2022, Volkswagen had the second highest number of recalls, followed by Daimler Trucks North America and Chrysler.
CEO: Quality Control Fixes to Take Years
With recalls being a pressing issue, one has to wonder about the root cause. Ford’s CEO, Jim Farley, has not shied away from acknowledging the elephant in the room. He’s openly admitted to quality control being a significant concern and has promised to prioritize fixing these issues. Farley has been quoted saying, “Fixing quality is my No. 1 priority,” but also cautioned that resolution will be a gradual process, spanning several years.
Perhaps having not one but two open NHTSA investigations will hasten the pace of Ford’s long-term solution for the quality control that plague the company.
New and used car loans are becoming more expensive, with no relief in sight. With new data showing the state of automotive finance in 2023, it’s clearer than ever that owning a vehicle is becoming a luxury. We’ll delve into the latest data courtesy of Experian to understand how consumers finance their vehicles, revealing some notable trends along the way.
These days, fewer drivers are financing their new and used cars. The reason is simple: interest rates are now at 20-year highs. Borrowing money costs a lot more than it did a few years ago. Cash buyers have the upper hand, and others are left budgeting for interest rates over 10%.
In Q2 2023, 79.7% of new cars and 38.4% of used cars were financed. This is in comparison to last year’s figures of 83.5% for new car purchases, and 41.5% for used cars.
Interestingly, the landscape of lenders has seen shifts as well. Captive financing – which refers to financing provided by the car manufacturer itself – has grown in prominence, now accounting for 29% of auto loans. On the contrary, banks and credit unions have seen a dip in their share, down to 25% each.
New numbers reflect how today’s higher auto finance rates are affecting consumers with below average credit scores. In fact, many subprime borrowers are sitting out the car market with interest rates over 20% for some. The contribution of subprime and deep subprime borrowers to total automotive financing has shrunk to just 15% in 2023, a drop from 21% in 2020.
SUVs, the undisputed leaders in popularity, now make up 60.87% of newly financed vehicles. Sedans saw a slight uptick in market share in Q2 2023, while trucks experienced a decline. It’s no surprise that trucks are struggling when prices are commonly north of $80,000 for a pickup.
But what’s the price of financing these new vehicles? The average interest rate jumped to 6.63% from 4.60% a year earlier. The average amount financed for new cars is now $40,657. The real eye opener is the jump in monthly payments. Monthly payments have surged by a whopping 25% over two years to a near-record $728.
Used Car Financing
Financing a used car has never been this expensive, period. Used car prices are down slightly from recent record highs, but interest rates between 10% and 20%+ are sending monthly payments through the roof. This leaves used car buyers searching high and low for lower rates. For many, the local credit union is they’re best bet.
Credit unions are the leading source of financing for used cars. 28.65% of used car loans were financed through a credit union in Q2 2023. Banks have continued to decline, and now make up 26.65% of used car loans, down from 32.26% just two years ago.
A concerning trend is the sidelining of consumers with lower credit scores from the used car market, largely due to persistent high auto finance rates. Subprime and deep subprime used car loans now make up just 22.04% of the market, down from 29.96% in 2020.
While the average amount financed for used cars has declined slightly to $26,863, the average used car monthly payment has risen sharply to $528, up from $440 in 2021.
Auto Loan Balances Balloon to New Records
The total value of outstanding auto loans, combining both new and used, has skyrocketed to a massive $1.45 trillion, a substantial rise from $1.16 trillion in 2020.
A worrisome trend is the increase in delinquencies, which have now surpassed even pre-COVID levels. Delinquencies of 30 days stand at 2.28%, while those of 60 days or more are at 0.82%. Notably, the 60-day delinquency rate for used car loans is considerably higher at 1.22%.
We’re likely to see more auto repossessions in the coming months if this trend continues.
Overarching Observations: The Bigger Picture
It’s crucial for today’s car buyers to know what they’re getting into when signing on the dotted line. Auto finance rates haven’t been this high in two decades. Many drivers are experiencing higher monthly payments driven by soaring interest rates for the first time. Those who are caught off guard are more likely to become delinquent, and may become the target of a vehicle repossession.
Stay informed and secure the best deal when you buy your next car with expert insights. Try CarEdge Data for behind the scenes market analysis. Looking for personalized help? Work 1:1 with a Car Coach to save the most, or have a quick chat when you schedule your first Consult call.
Buying a car doesn’t have to be miserable. Let us know how we can help you score big wins with your next ride!
Most car buyers don’t typically think of autumn as a great time to buy a car, but it’s the perfect time if you know where to look. Whether you’re planning to buy, hoping to sell, or are just curious about where the industry is headed, you’ve come to the right place. Buckle up as we steer you through the latest trends, from brand inventories and market conditions to financial forecasts. Let’s roll!
New Car Market Fall Update
The new car market still hasn’t reached so-called ‘normal’. Will it ever? Only a fool would make bold predictions after what we’ve all witnessed this decade. However, let’s talk about what we do know.
This autumn, we’re seeing an increase in cars on the lot, yet a significant disparity persists between automakers in terms of inventory levels. The current industry average hovers just under 60 days in terms of Market Day Supply. Why should you care about Market Day Supply (MDS)? This metric is crucial when understanding how much bargaining power you might have at the dealership. Brands with a high MDS are more eager to shift their inventory, and therefore, more likely to negotiate on price.
The High Inventory Brands
In the present market, Infiniti, Chrysler, Lincoln, Ford, Dodge, Buick, and Jeep have high inventory levels. This makes them prime targets for savvy buyers looking to negotiate a better deal. Here’s a look at nationwide inventory for the most negotiable new car brands:
Make
Market Day Supply (Nationwide 9/1/23)
Infiniti
119
Chrysler
179
Lincoln
128
Ford
99
Dodge
190
Buick
113
Jeep
179
Market Average
72
As you can see, all of these brands are dealing with a surplus of new car inventory right now. The longer that a new car sits on a dealer’s lot, the more negotiable it becomes for the knowledgeable car buyer. Dealers pay ‘floorplanning costs’ to keep inventory, so every day cuts into their profit margins. Learn how to use this information to your advantage with this 100% free Car Buying Cheat Sheet.
Low Inventory But High Demand
On the flip side, if you’re looking at Kia, Honda, Subaru, Lexus, BMW, and Toyota, be prepared for a bit of a struggle. These brands are facing low inventory levels. In some instances, new arrivals are pre-sold before they even hit the lot!
Surprisingly, Subaru remains a brand that’s willing to negotiate even when their inventory is low. Let’s take a look at some examples of today’s Subaru inventory:
These are the top trends that our team of Car Coaches are watching this fall season. Each of these variables has the potential to disrupt the new car market in significant ways.
Inventory Surge: The buildup of new car inventory has already begun, but the question remains, will it last into fall? With sky-high interest rates continuing to dominate buyer’s mindsets, we think it will. We predict a buildup of new vehicle inventory as we near the end of 2023, slowly but surely.
Manufacturer Incentives: Manufacturer incentive spending is at a two-year high, accounting for 4% of the transaction price on average. Brands like Ram and Jeep have recently advertised new models at 10-15% below MSRP. If manufacturers increased their incentives to pre-pandemic historical norms around 7-9%, that would entice more buyers to take action. We don’t expect automakers to raise incentives at such a rapid pace by winter, however.
The UAW Wildcard: There’s speculation of a 10-20 day UAW strike that could cause short-term hiccups. While we don’t expect this to be a game-changer, it’s something to keep an eye on. It would, however, be a bigger deal for automakers like Stellantis and General Motors. Analysts estimate that a 10-day strike would cost them about $5 billion.
CarEdge New Car Market Seasonal Rating: It’s a ‘fine’ time to buy a new car.
Better deals are anticipated this winter, but depending on what vehicle you’re in the market for, this autumn just might be the perfect time to negotiate a great deal.
Used Car Market Fall Update
While used car prices have slightly decreased, they are still far above historical averages. This means you’re unlikely to snag a bargain, especially if you’re gunning for a reliable vehicle with a clean history for under $20,000.
Pro Tip: Never enter the used car market blind. Always get a pre-purchase inspection (PPI) to understand the future maintenance needs and overall condition of the car.
The Trade-In Landscape
Trade-in values will continue to slowly decline as wholesale auction values are expected to keep falling. Following historically steep declines in wholesale used car prices in July and early August, we expect a more gradual decline in the fall.
Whereas used cars, trucks and SUV values were falling at a rate of -1.00% to -1.5% weekly as of last month, we expect weekly used car values to decline by around -0.5% to -0.3% for most of this season. Why? There’s no indication that a glut of used car inventory will arrive on the market any time soon to drive down values quickly.
The best used car sellers (especially those looking to trade-in) should hope for is slow but steady drops in value in September through November. You’re likely to get more for your trade-in or used car sale today than you will in a few months.
CarEdge Used Car Market Seasonal Rating: very difficult for buyers on a budget.
This is especially true if you’re looking for a vehicle of decent, reliable quality for under $20,000. Interest rates incentivize large down payments and cash buyers, but most of us don’t have the means to put $10,000 or $20,000 down.
If you’re in the market for a new or used car, here’s our most important advice for you: Generally, say NO to market adjustments. A lot has changed since the madness and mayhem of late 2021 and early 2022. The exceptions are true specialty vehicles like Ford Bronco Raptor or Toyota RAV4 Prime, which are so in-demand that markups are almost a given.
Ford’s inventory is overflowing in 2023. Indeed, the brand known for its robust line-up seems to be outpacing the current car market’s appetite. Paradoxically, price tags on these vehicles have climbed a staggering 27% since 2019. It appears Ford is navigating uncharted waters with an abundance of cars at their dealerships, waiting for buyers.
For those considering adding a new Ford to their garage, this might just be your golden opportunity. Let’s explore further.
Ford Inventory Update
In the automotive world, a balanced market dances around the 60-day inventory supply benchmark. This means, without the influx of any new stock, dealerships should ideally exhaust their current inventory in a two-month span at the prevailing sales rate. In 2023, Ford’s numbers have dramatically eclipsed this industry norm.
Currently, Ford boasts a 96-day supply, translating to a whopping 318,339 cars available across American Ford dealerships. Some models like the all-electric Mustang Mach-E and Ford’s van lineup, including the Transit and E-Series, have even higher inventory supplies, with the former leading at an impressive 214 days.
Even the iconic Mustang isn’t zipping away as speedily as one might expect, with a 168-day inventory. F-150 inventory is climbing as ‘trimflation’ pushes truck prices ever higher. As we approach Labor Day 2023, F-Series inventory sits at 117 days nationwide. For the best-selling electric truck on the market, the F-150 Lightning, there’s currently a 97-day supply nationwide with 3,632 for sale.
As Labor Day 2023 approaches, let’s delve deeper into the inventory landscape of every Ford model.
Make
Model (New)
Market Day Supply
Nationwide Inventory
Total Sold (45)
Ford
Bronco 2-Door
47
1,846
1,759
Ford
Bronco 4-Door
41
10,159
11,280
Ford
Bronco Sport
72
23,967
14,993
Ford
E-Series
177
3,093
785
Ford
Edge
147
21,961
6,706
Ford
Escape
89
23,747
12,071
Ford
Expedition
119
13,768
5,202
Ford
Explorer
155
31,883
9,253
Ford
F Series
117
103,348
39,709
Ford
F-150 Lightning
97
3,632
1,677
Ford
Maverick
22
3,401
6,934
Ford
Mustang
168
6,606
1,771
Ford
Mustang Mach-E
214
19,718
4,140
Ford
Ranger
36
3,206
4,021
Ford
Transit
160
32
9
Ford
Transit Connect
46
1,158
1,145
Total Ford
96
318,339
149,146
For comparison’s sake, here are the ten new car models with the highest inventory right now.
Make
Model
Market Day Supply
Total For Sale
Total Sold (45 Days)
Lincoln
Aviator
403
4,771
533
Jeep
Renegade
393
11,550
1,322
Jeep
Cherokee
364
4,606
570
Ram
Ram 2500
354
23,910
3,042
Chrysler
Pacifica Hybrid
344
7,235
947
Jeep
Grand Wagoneer
331
3,771
513
Jeep
Gladiator
291
21,743
3,360
Ram
Ram 1500 Classic
247
5,051
920
Mitsubishi
Outlander PHEV
241
1,679
313
Maserati
Grecale
234
2,171
417
This is serious stuff, folks. When an automaker inches north of 80 days’ supply of new cars, it’s noteworthy. When best-selling models are all over 100 days’ supply, that’s big news. Ford’s luxury nameplate is also flooded with unsold new cars.
Lincoln Has It Even Worse
Ford Motor Company’s premium brand has an unprecedented inventory problem right now. Just how much unsold Lincoln inventory is sitting on lots right now? Lincoln overall has a 125-day supply. Here’s the breakdown by model:
If you’re looking for a more premium SUV, Lincoln dealerships should be willing to negotiate on pricing with inventory numbers like these. See localized inventory and pricing insights with CarEdge Data.
Ford Labor Day Deals
We recently reviewed every manufacturer incentive to find the best Labor Day deals. Here’s the best Ford has to offer this year:
Ford EV inventory is climbing, and the automaker is offering incentives to move vehicles off the lot. Lease a Mustang Mach-E for just $409 per month for 36 months with $5,188 due at signing. Lease a F-150 Lightning for $633 per month for 36 months with $6,332 due at signing.
Ford also has some good financing deals right now. The Mustang qualifies for 1.9% APR for 72 months with a $1,000 cash offer. The Bronco Sport, Escape, Edge and Explorer all qualify for 2.9% APR for 60 months and between $1,000 – $2,000 in cash bonuses. The F-150 and F-150 Lightning both qualify for 3.9% APR for 60 months and $500 customer cash, which is a good deal in today’s high-interest market.
So the deals are out there, if you know where to look. But don’t settle for ‘just’ manufacturer incentives when there’s a 100 to 200 day supply of new cars. Additional discounts CAN and SHOULD be negotiated in a market like this. Not sure where to start? Our Coaches are ready to assist.
Why on Earth would we be sharing inventory numbers with the masses? Does anyone care? In fact, you should care if you’re in the market for a new Ford. Real-time inventory data is just one of the many data points that our CarEdge Coaches use to help our members. When inventory is high, dealers are more likely to budge on every aspect of the deal, from trade-in valuation to out-the-door pricing.
In simple terms, here’s how these numbers can be used as leverage. Looking for an affordable electric vehicle with great range, fast charging and the federal tax credit? Show your local Ford dealer that you’re familiar with the Mustang Mach-E’s inventory surplus. Ready to negotiate a sweet deal on a new F-150, Explorer or Mustang? You now have data on your side.
Access ALL of the latest car market data with CarEdge Data, your one-stop resource for auto insights. Ready for a pro to assist? Work with a CarEdge Coach for live support from start to finish, or schedule a Consult for a quick chat. We’re on your side! Let us know how we can help you save the most with your new or used car deal.
Labor Day is not just about barbecues and the beach; it’s also one of the best times to get a great deal on a new car. If you’re considering buying a car, these Labor Day deals are the ones worth your time. Our team of Car Coaches pored over every offer and selected the real deals among the crowd. Here’s a breakdown of the best Labor Day car sales to look out for from major car brands.
Cadillac is offering a 1.9% APR for 36 months for the CT4 and CT5. Also, the XT5 and XT6 come with a 1.9% APR for 36 months plus a $1,500 purchase allowance when you finance with Cadillac. Deals last until 9/5/23. See the details at cadillac.com and browse listings here.
Chevrolet Labor Day Sales
Chevrolet’s Summer Drive Event is on, and deals are valid through 9/5/23. Qualified buyers can score 1.9% APR for 36 months when financing with GM. Chevrolet is also offering cash incentives for the Equinox ($1,250), Blazer ($1,250), Traverse ($1,000), Silverado ($2,500), Malibu ($750), and Camaro ($750). For the Silverado, a total of $6,500 is available for buyers with a trade-in. Notably, these offers won’t apply to factory-ordered vehicles. Learn more about Chevrolet deals and browse local inventory.
Chrysler Sales This Month
Depending on region, get up to $2,500 cash incentives for the Chrysler Pacifica Plug-In Hybrid. States that participate in the CARB emissions program qualify for the full incentive. Others qualify for $750 cash incentives. For the Chrysler 300, buyers get a $2,000 cash incentive. Learn more at chrysler.com and browse local listings.
Dodge Lease Deals
There are some decent Dodge lease offers this month. These are the best offers:
Hornet: $449 per month for 36 months with $4,249 due at signing
Durango: $478 per month for 36 months with $3,999 due at signing
Charger: $461 per month for 36 months with $4,249 due at signing
Challenger: $410 per month for 36 months with $4,249 due at signing.
Ford EV inventory is climbing, and the automaker is offering incentives to move vehicles off the lot. Lease a Mustang Mach-E for just $409 per month for 36 months with $5,188 due at signing. Lease a F-150 Lightning for $633 per month for 36 months with $6,332 due at signing.
Ford also has some good financing deals right now. The Mustang qualifies for 1.9% APR for 72 months with a $1,000 cash offer. The Bronco Sport, Escape, Edge and Explorer all qualify for 2.9% APR for 60 months and between $1,000 – $2,000 in cash bonuses. The F-150 and F-150 Lightning both qualify for 3.9% APR for 60 months and $500 customer cash, which is a good deal in today’s high-interest market. See Ford’s current offers in your area.
Honda has a few great financing offers this month. Finance the Ridgeline for 0.9% APR for 24 to 36 months, and 2.9% APR for 37 to 60 months. The Accord, Accord Hybrid and Passport qualify for 2.9% APR for 24 to 48 months, and 3.9% APR for 49 to 60 months. Other Honda models qualify for 3.9% APR or higher.
Honda’s brand loyalty program offers as much as $1,250 in cash incentives right now. The cash offer ranges from the Ridgeline ($1,250), Passport ($1,000) and all other models ($500). Honda also has a number of great lease deals this month, which you can learn more about here. See the details at Honda.com.
Hyundai offers some of the best Labor Day car sales in 2023. Ever since the IONIQ 5 lost the federal tax credit, Hyundai has been upping incentives for the EV. Today, IONIQ 5 and IONIQ 6 leases include a $7,500 discount. IONIQ 5 and IONIQ 6 financing offers start as low as 0.99% APR financing for up to 48 months. Current Hyundai owners and lessees can save an additional $2,500.
The Kona features a cash offer of $1,500, the Tucson offers $2,000 off, and the popular Santa Fe has a $2,500 cash offer. All Hyundai Labor Day sales are valid through September 5, 2023.
Make no payments for 90 days with the 2023 Jeep Grand Cherokee. The 2023 Jeep Cherokee Altitude Lux is advertised for 15% below MSRP for an average savings of $6,300. The 2023 Jeep Compass and Renegade are 10% off MSRP, but be wary of unexpected dealer fees that seem to plague Jeep dealerships. The Gladiator features employee pricing currently.
The Kia EV6 features $5,000 cash back and 0.9% APR through 9/5/23, although Kia electric models lost eligibility for the federal EV tax credit. The Kia Niro EV qualifies for $3,750 cash back and 0.9% financing. State and local incentives may apply. The Kia Soul, Forte, and Stinger qualify for 2.9% APR financing. See details for Kia’s Labor Day sales.
This Labor Day, Lexus is offering $2,000 lease cash for the ES and ES Hybrid. The new electric Lexus RZ and NX plug-in hybrid qualify for $7,500 in lease cash. Learn more about Lexus deals near you at Lexus.com.
Lincoln has a few good deals for Labor Day 2023. Finance the Lincoln Corsair and Nautilus for 3.9% APR for 60 months with $2,000 cash when you have a trade-in. See details from Lincoln.
Nissan’s Thrill of the Drive sales event lasts through September 5, and features deals on financing and leases.
These are the best Nissan deals this Labor Day: Lease an Altima SV for $329/month for 36 months with $3,099 due. Lease a Nissan Rogue for $409/month for 36 months with just $2,009 due.
Ready to go electric? Lease the new Ariya starting at $369/month with $4,129 due. Nissan is offering 0% financing for the Rogue, Murano, and Titan. Explore more Nissan Labor Day sales at NissanUSA.com.
Ram is advertising 10% off MSRP for the Ram 1500 Classic as inventory rises on dealer lots. Despite slow truck sales, Ram and parent company Stellantis aren’t doing much in the way of financing offers. As Labor Day approaches, 2.9% APR is the best they can do for the Ram 1500. Learn more about Ram deals near you.
The Toyota National Sales Event lasts through 9/5/2023, and offers decent (but not stellar) financing and lease deals.
These are the standouts among the deals: The following models qualify for 2.99% APR: 2023 Tacoma 4×2 is the featured financing deal at 2.99% APR for 60 months. Front-wheel drive Highlanders are offered at 3.49% APR. All of the following models qualify for 3.99% APR: bZ4X EV, Camry (excluding hybrids), Corolla (excluding hybrids), Corolla Hatchback, Highlander AWD (excluding hybrids), RAV4 (excluding hybrids).
Currently, the Taos and Tiguan both qualify for 1.9% APR for 36 months, which is a great financing offer. If a six year loan is in your future, the Atlas and all-electric ID.4 are offering 3.9% APR for 72 months.
Volvo’s Summer Safely Sales Event ends on August 31, and it’s not yet clear what deals and offers will replace it come Labor Day weekend. Check volvocars.com as the holiday approaches for the latest sales.
There’s Room For Negotiation
In the realm of car sales, mastering negotiation can pivot a purchase from a financial burden to a steal of a deal. Given the present Labor Day car sales, fine-tuning your negotiation prowess could equate to hefty savings. Remember, substantial Manufacturer’s Discounts are a sign that there’s room to haggle.
Prepared to harness the power of negotiation for your upcoming car investment, potentially saving thousands? You’re in the right place. Team up with a Car Buying Coach to negotiate using auto industry insights typically unavailable to the public.
If a one-time consultation is more your style, CarEdge Consult offers expert advice tailored for your needs. For those looking to embark on a DIY car buying journey powered by rich auto market data, CarEdge Data is the perfect fit.
