Is The Car Market Freezing?

Issue #120

Happy Tuesday!

Today’s issue is all about the new and used car market. We’d love to know your thoughts.

Were you going to buy a car and backed out? Let us know with a comment.

Market News

• Here’s why Tesla Cybertruck owners hate their headlights.

• Winter temperatures can reduce EV range. So, how did one of the coldest countries in the world beat range anxiety? Here’s the explanation. 

• Waymo’s cars are contributing to noise pollution, and people are angry. Here’s what’s happening. 

• All automakers, including Tesla, must build cars and parts in the US. 

• These are the best-selling cars, trucks, and SUVs.

• Tesla executives clashed with Elon Musk after he killed a cheap car project.

• An abandoned Bed Bath & Beyond lot became the dumping ground for this popular truck.

• We discuss this massive issue with Ford diesel pumps and what you can do about it. 

• Toyota went from offering one EV to seven: here’s everything about this electric leap.

• Automakers can turn features on and off at will. Can you do something about it?

Safety and Recalls

• This Ford recall has nothing to do with the camera issue, but still includes 29,000 vehicles.

• Texans tend to ignore recalls. Here’s why it could be deadly.

• Volkswagen recalls over 170,000 vehicles. Here’s what you need to know.

Car Culture

• The Chrysler 300 could make a comeback and look like this.

• Jag’s new, brutalist style could go well on this kind of vehicle.

• Here’s why you should make a car bucket list. Do you have one?

• This iconic car can’t have its name trademarked. Here’s why. 

• These are the weirdest cars you’ve seen used by local governments.

• The Bentley Bentayga dumped its W-12 engine, but fear not. This smaller engine produces more power.

• Is “luxuriously” normal something you want? Then you should try this SUV.

• These are ten bargain fun cars that aren’t a Miata.

• This color depreciates the least because now you have to think of everything.

• Here are nine weird amphibious cars you never heard of.

Video Of The Week

Here’s the quest to collect car culture instead of cars. Check out the video to see what we mean.

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In The Know

Is the automotive market entering a freeze?

Recently, we noticed a behavior change in our newsletter. We discussed it in our latest staff meetings: people aren’t responding to news on new cars.

Instead, they prefer to read about older cars. That’s when the suggestion came up: maybe people aren’t buying cars.

That’s why there’s a decreased interest in cars, trucks, and SUVs. 

It wasn’t a groundbreaking thought or conclusion.

Yet, then, in a fluke coincidence, we started getting more data that confirmed our belief. (Does that mean they’re tracking our conversations?) 

We follow The Real Car Dealer YouTube channel because it provides a down-to-earth approach to selling cars.

He’s been struggling to move cars that top out at $2,500! That’s surprising enough, but we invite you to dive into the comments and get a harsher grip on reality. You can check out this video here.

So, we’re not alone, but then, even more data appeared. 

Some articles hinted at a considerable drop, such as this one. 

Then, Cox Automotive confirmed it (if you don’t know them, they own Kelley Blue Book).

There’s something called the SAAR, which is the seasonally adjusted annual rate. These are fancy words for the sales pace.

It estimates how many cars will sell by the end of the year. This value changes every month, as it’s subject to changes in behavior. 

In March 2025, the SAAR was 17.8 million, one of the best-performing years since the pandemic. April continued with a strong performance at 17.3.

May, however, is an entirely different story. The SAAR is 16.0 million. 

There are two ways of looking at this:

• Glass half-full: May of 2025 outperformed May of 2024 (16.0 million in 2025 vs. 15.8 million in 2024)

• Glass half-empty: May of 2025 dropped off significantly compared to April of 2025. 

If you want to read more about the report, check it out here. 

The most glaring reason for low sales is new car prices. This article explains that incoming tariffs and the car-buying frenzy accelerated this phenomenon.

A direct consequence of new cars being so expensive is that used cars also experience a surge in pricing. As this article highlights, people who can’t afford a new car opt for a used one. 

The pre-tariff rush fueled this surge, and then tariffs came and slowed things down. Plus, it also shows something that could be more concerning. 

Tariffs aren’t the only cause for steeper car prices. Insurance had skyrocketed well before tariffs were even a reality. 

In October 2024, consumer inflation was a modest 2.6% year-over-year, but insurance rose 14% in the same span! You can read this article if you want to know about the causes of such a spike. 

The increase is so much that no cheaper gasoline can compensate for it. Here’s how fuel prices have changed. 

It’s no coincidence that one of our most popular articles discusses why driving will be far more expensive. You can read it here. 

Manufacturers have also focused on expensive cars for years, relentlessly increasing prices. Even last year had its negative consequences, as people preferred cheaper cars. 

Tariffs affect car prices, but not in the way many might think. Insurance rates will continue to surge because insurance companies will use supply chain issues to assert that repairing cars will be more expensive. 

But, for us, the impact will come differently. Automakers have a supply of pre-tariff prices, which could translate to losses if they sell them too quickly.

So, you’re going to find it harder to get better pricing. As this article explains, negotiating a price now will be easier than in the future. 

Once that inventory is gone, cars could be even more expensive. We’re already feeling the impact, as one automaker ditched the cheapest car you could buy in the US. 

Interesting times are ahead, indeed. 

What are your thoughts? Are you looking to buy a new car?