- Sales of electric vehicles are growing at a rate of 55% per year.
- California and the EU have banned the sale of new combustion vehicles after 2035.
- However, analysts predict that by 2050, there will still be up to 1 billion combustion vehicles on the roads.
- This will worsen extreme weather conditions and contribute over $1 trillion in revenue to the oil industry.
- Major automakers will have more time and resources to transition to electric vehicles.
American car buyers are facing increasing challenges in purchasing new vehicles due to inflation and rising interest rates, with the average monthly new car payment reaching around $750, creating potential financial strain for many buyers, especially those in subprime categories, and the resumption of student loan payments may further exacerbate the situation, impacting carmakers and potentially leading to price adjustments in the market.
Canadian millennials, especially homeowners, are expected to face significant economic damage and high interest costs in the coming months due to rising interest rates, according to a report by RBC, leaving them vulnerable to job losses and straining their high levels of debt.
The auto market has seen a significant decline in average new vehicle prices, with a drop of $3,243 from January to July, marking the first notable decline in car prices in years.
Huge price reductions and increased availability are driving growth in the electric vehicle market, which saw record sales in 2023, as major manufacturers like Tesla, Ford, and General Motors lower their prices and pass on cost savings from raw materials to consumers.
More Americans are struggling to keep up with car loan and credit card payments, particularly lower-income earners, as higher prices and rising borrowing costs put pressure on household budgets, signaling potential consumer stress; the situation is expected to worsen as interest rates continue to rise and paused student loan payments resume.
Americans facing high prices and interest rates are struggling to repay credit card and auto loans, leading to rising delinquencies and defaults with no immediate relief in sight, particularly for low-income individuals, as analysts expect the situation to worsen before it improves.
Used car sales and prices have surged during the pandemic due to supply chain disruptions, leading to a shortage of new and used cars, causing prices to remain elevated and creating a favorable market for the automotive industry.
The US experienced a significant decline in wealth last year, but millennials saw their net worth rise due to their higher investment in real estate, debunking the myth that they are financially struggling.
Car buyers are finding some relief in the US market, as prices for new vehicles have dropped by up to 20% thanks to an increase in unwanted EVs, although certain vehicles remain expensive.
The aging population in America, particularly the boomers, is driving up housing demand and prices, leading to an affordability crisis and locking out middle-income buyers in the market.
Gen Z is more optimistic about homeownership than millennials, with a lower percentage believing it will be impossible in their lifetime, and while both generations face barriers to homeownership such as high home costs and student loan debt, Gen Z is doing a better job of saving and has a slightly higher rate of homeownership compared to millennials and Gen X at their age.
Despite increased household wealth in the US, millions of households are struggling financially due to inflation, high interest rates, and rising living costs, which have led to record levels of debt and limited access to credit.
Car insurance costs have risen more than 19% in the past year, outpacing overall inflation, due to factors such as risky driving habits, increased repair costs, and the impact of natural disasters.
The resumption of student loan payments in October will add to the financial burden of Gen Z and millennial Americans looking to buy a home, further squeezing their ability to afford housing.
Millennials and Gen Zers are concerned about the financial impact of baby boomers, as they believe the older generations' choices have contributed to their current financial struggles, including high student debt and difficulty affording housing, while boomers hold a majority of the nation's wealth.
