Hello folks! Let's talk about affordability and the features budget-conscious consumers *actually* want in their new vehicle.
With rising ATPs and presented prices for new vehicles hovering near $50k, I wanted to dive deep into our mine of AutoPacific data and look at today's entry-level shoppers.
➡️The main takeaway? Basic, less-extravagant features are “in”.
Expectedly...upgrades like premium stereos, more immersive cabin technology, navigation, leather seats, and flashy exterior styling bits (LED accent lighting, bigger wheels, etc.) just aren't really wanted by these $25k-$35k vehicle shoppers. Yes many of these features lack strong demand, they’re commonly found on popular vehicles that carry MSRPs within that coveted price bracket.
Peeping these numbers, I think front wheel drive, base stereos, cloth seats with various manual adjustment, and analog gauges are “in,” for these more frugal shoppers, so the array of standard equipment found on entry- and mid-level trims of today’s popular vehicles within the $25,000 to $35,000 price range may need to be reexamined as consumers tighten their belts in the face of economic uncertainty.
➡️What can automakers do then? Several of these must-have features could likely be removed to lower a vehicle’s total cost and consequently better match the more limited budgets and needs of those active in this particular price bracket.
➡️Shifting gears into more of the psychographic/demographic data, here's what I learned about these $25k-$35k new vehicle shoppers:
-88% currently own an ICE, 20% plan to buy a hybrid next, and 5% an EV (again, we need more EVs on the lower end of the pricing spectrum!)
-35% said this will be their first time buying/leasing a brand-new vehicle, upgrading from their current vehicle that's 11+ years old.
-Median HHI of $50k.
-47% live in the suburbs.
-63% are households without children.
➡️Now here's an interesting catch...31% of these budget shoppers are Millennials and 29% Boomers, clearly there's a stark difference in incomes amongst younger buyers (who have/continue to battle various economic hardships) and older buyers with limited and rather restricted incomes.
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New week, new data! Folks our AutoPacific team is busily in the midst of processing the results from our annual Future Attribute Demand Study(FADS), which gauges consumer interest in more than 100+ vehicle features, powertrains, and technologies.
For the 2025 FADS study, we reached out to 18,000 people who plan to plan to buy/lease a new vehicle within the next 3 years. As I continue to comb through all of the data, I can't wait to share with you more of our findings, including various psychographic and demographic figures as it relates to certain types of propulsion (EV, PHEV, hybrid, ICE), intended and considered brands and segments, plus views on driving and other issues.
Until then, here's a peek at what the top 15 most-wanted features are by new vehicle shoppers. What are the biggest takeaways? Let's dive in:
➡️ We're seeing higher interest in various autonomous driving systems. In fact...the most-wanted item this year is "Hands-Off Semi-Autonomous Driving For Highway Use Only with Driver Attention Required". 43% of our survey respondents want a system like GM's Super Cruise, Ford BlueCruise, or Nissan ProPILOT Assist 2.0 on their next new vehicle.
➡️ Demand is increasing for crucial ADAS systems that curtail accidents in all sorts of environments, which is great. Several of these ADAS features are now common and standard, so I'm glad to see consumer demand rise for them. We saw jumps in demand for "Rear Automatic Emergency Braking" (43%), "Adaptive Cruise Control With Active Lane Centering AND Stop And Go" (40%), and "Rear Cross-Traffic Alert with REAB" (38%) amongst others.
➡️Additionally, for this year's FADS study I also wanted to measure demand for "Large Animal Detection". Pioneered by Volvo, the safety feature aims to alert and hopefully prevent collisions with moose, deer, bear, dinosaurs, sharks, etc. 36% of respondents want it on their next new vehicle!
➡️ We were curious to track self-reported trust in ADAS and autonomy, and our data shows more and more consumers are becoming comfortable with these life-saving amenities.
I care a *ton* about safety with cars, so these statistics are collectively a big win in my book.
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Folks, it's the final countdown if you're considering buying or leasing a new EV. In about a month, that sweet $7,500 federal tax credit goes bye-bye. This is certainly going to be a blow to EV sales, but the reality is that people *will* still be buying them regardless for the indefinite future. (click to enlarge the chart below)
The past few years when our AutoPacific research team has surveyed new vehicle shoppers, we've been curious to learn just how important the federal tax credit is toward purchasing or leasing an EV...and well, guess what, it is!
➡️ Here's what we know about American consumers who would consider buying or leasing a new EV within the next three years using the tax credit:
-Nearly 80% of EV considerers reported they are indeed aware of the potential $7,500 federal tax credit.
-21% (up a smidge YoY) are *very aware* of it and plan to buy an EV because of it.
-12% (also up a smidge YoY) are *very aware* of it and plan to lease a new EV because of it.
➡️ Why does this all matter? Well because still, more than a third (32%) of those consumers who told us they are *not* interested in buying an EV said it was due to affordability...but 35% of these shoppers did tell us that they would actually *reconsider* if EV prices were lower. Potential federal tax credits can fix that woe, and in turn, convert what we call "EV rejectors" into hopefully "EV acceptors".
It sucks that this tax credit is going away and pushes us backward. Now is the time to flock to the dealerships (or online directly) and scoop up that new EV you've always wanted. There are a *lot* of enticing finance and lease deals happening right now that have caught the attention of shoppers (myself included who may pull the trigger on an EV), some as insanely cheap as $0 down and <$250 a month, or 0% APR for several months.
Politics aside (because politicizing EVs is childish and immature), if you're on the fence and can swing it financially, make it happen ASAP.
#EVs #electricvehicles #automotive #cars #automotiveindustry
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PHEV...EREV...whatev? Nope! Peeping data from our latest nationwide 2025 Future Attribute Demand Study, we noticed an interesting trend amongst plug-in hybrid buyers: they're really more interested in extended-range electric vehicles. Here's the skinny (click to enlarge the chart).
➡️55% of consumers we talked to who intend to buy/lease a new plug-in hybrid vehicle within the next 1-3 years, are actually more interested in buying/leasing a more capable extended-range electric vehicle. This is a jump of about 10% pts compared to the 45% of PEHV intenders who specifically indicated they want a PHEV. In our survey questionnaire, we specifically explain the benefits and differences between a common PHEV and more capable EREV using language that's very easy to understand.
➡️So why? It's all about the usage case. Diving deeper into our AutoPacific research, those consumers who really want to buy an EREV have different appetites for driving when behind the wheel:
-EREV intenders take long-distance road trips or driving vacations 20% pts more than PHEV shoppers.
-EREV shoppers are more into performance/fun driving as well as pleasure/relaxed driving.
-EREV shoppers spend more time on the highway, and shuttle around passengers (+10-15% pts) and pets (+9% pts) more often.
You're going to see many automakers ramp up their EREV offerings in the coming years as they attempt to bridge the gap between ICE and EV propulsion. Both EREVs and PHEVs certainly have their benefits, yet the biggest threat I think will be in how automakers market these two powertrains and why a consumer should consider one.
#EVs #erev #ev #pluginhybrid #electricvehicles #automotive #cars #automotiveindustry
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Hey folks! My own Saabaru gets a bit of love from my esteemed colleague and friend @ShootingCars. Enjoy! watch video on watch page
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Greetings! I'm Robby, a lifelong gearhead and analyst at AutoPacific. Join me on this adventure as I share my takes, thoughts, and insights on the new vehicles I test each week. I hope you learn a thing or two about what's happening in today's exciting automotive industry.
Thanks for being here, folks.