Sunday, November 10, 2024

Latest Posts

Toyota Executives Predict The Average Price Of A New Car In The USA Will Reach $50,000 In 2023

The average new vehicle transaction price is predicted by a top Toyota North America executive to shortly surpass $50,000 and then continue to grow, putting additional pressure on American customers.

According to Automotive News, Toyota Motor North America’s head of sales Jack Hollis told reporters that he thinks the United States is already experiencing a recession, but noted that it is a unique downturn that defies conventional economic models. The average transaction price will increase and “continue to grow” above the $50,000 threshold as a result, among other implications.

This implies that the average cost of new cars for American consumers will be high. For comparison’s sake, $50,000 will get you a Toyota GR Corolla Morizo Edition or a $46,200 BMW X3 sDrive30i, plus plenty of change.

Even though the cost of new cars decreased in January, this may have been been a temporary hiccup. A startling number of Americans, according to a recent Kelley Blue Book analysis, pay more than $1,000 a month in car payments. The data show that 15.7% of purchasers who bought a new car in the fourth quarter of 2022 are paying four figures or more each month for their vehicle.

See also  Black Stars qualify for 10th successive AFCON after beating CAR 2-1

Not all of what Hollis sees happening to the American automobile sector in the future is an increase in transactional prices. He thinks that the demand for used cars would continue to be strong, supporting residual values. This happens as a result of car buyers being priced out of the new vehicle market and being forced to turn to the used car market.

The instability of the entire supply chain, caused by the fact that things are still not back to normal everywhere in the world, is the only factor preventing [the industry] from moving forward.

While 100,000 more sales will assist Toyota and Lexus in 2023 (compared to 2.1 million sales last year), Hollis continued, a slight decline in market share is not ruled out.

See also  Gabanki - Nack (feat. Kent & Flosso - Voltagemusic) (Bad Days Are Over)

This first quarter, we knew it would be slower for us. The second quarter will still be a little slow – not quite as slow as the first quarter – but the first half will be behind last year, and the second half will be ahead of last year, he continued.

Toyota still dominates the sales rankings in California, but just narrowly. The Tesla Model 3 and Model Y outsold popular models like the Camry and RAV4, and Toyota had 17% of the market vs Tesla’s 11%. But it is anticipated that this disparity will narrow in the upcoming years.

Hollis explains that, overall, automakers might sell as many as 17 million vehicles if limits weren’t a problem. However, supply chain concerns continue to be a pain in the automotive industry’s side. Instead, we’ll sell about 15 [million], which adds another 2 million cars to the amount of unmet demand.

See also  Duffuor's injunction: NDC presses for a solution outside of court

Bob Young, a representative of Toyota, emphasized that the high cost of raw materials is a factor. He went on to say that the sector must find fresh ways to reduce expenses, but that consumers wouldn’t see a decrease in commodities prices until the next year.

Manufacturers are now in a difficult situation. The amount of the increased costs that can be passed on to the customers must be determined. If that can’t be done, the automaker or the suppliers of the parts must bear the additional costs. He continued, “We’re eating it in our own profitability.”

Rising car prices appear to be the new standard for customers. In the upcoming years, hopefully, things will start to balance out.

Latest Posts

spot_imgspot_img

Don't Miss

Stay in touch

To be updated with all the latest news, offers and special announcements.