Electric Cars

Volkswagen's highly anticipated ID.Buzz electric minivan, a modern homage to the classic Microbus, will take a brief pause in its North American journey, skipping the 2026 model year before its planned return in 2027. This decision, clarified by the German automaker, aims to streamline inventory management and strategically position the vehicle for future market re-entry, rather than signaling a discontinuation as some initial reports suggested. The retro-chic EV, which launched in Europe in 2022 and made its U.S. debut for the 2025 model year, has encountered a slower sales pace than anticipated, prompting this strategic adjustment in its release schedule.

The Volkswagen ID.Buzz generated considerable excitement upon its announcement, particularly among enthusiasts of the iconic Microbus, promising a blend of nostalgic design with modern electric vehicle technology. However, its market performance in the U.S. has been modest. Through the third quarter of the current year, the ID.Buzz recorded sales of only 4934 units. Industry analysts point to factors such as its EPA-estimated range of 234 miles and a starting price exceeding $61,545 as potential deterrents for consumers in a competitive EV landscape.

Amidst earlier concerns stemming from a Reddit discussion and reports suggesting the ID.Buzz's possible discontinuation, Volkswagen Group of America CEO Kjell Gruner stepped forward to reassure the public. Gruner emphasized that the ID.Buzz remains a vital component of Volkswagen's product lineup. He articulated that the decision to forgo the 2026 model year is a deliberate move to 'optimize inventory' and effectively support dealerships by utilizing the remaining 2025 models throughout the upcoming year, paving the way for a refreshed 2027 model.

The exact nature of the 2027 ID.Buzz's return remains somewhat under wraps. It is currently unclear whether Volkswagen plans significant updates or upgrades to the vehicle's specifications, such as an improved range or revised pricing, or if it will largely retain its current configuration. The brand's focus on a 'transition' period implies potential enhancements, but concrete details are yet to be revealed. This strategic pause indicates Volkswagen's commitment to refining its approach to the electric minivan market, ensuring the ID.Buzz can better compete and capture a larger audience upon its reintroduction.

In essence, the ID.Buzz is not fading away but is undergoing a calculated intermission to ensure its long-term viability and success in the North American market. Volkswagen is leveraging this brief break to align its production and sales strategies more closely with market demands and consumer expectations. This strategic maneuver underscores the dynamic nature of the electric vehicle industry and manufacturers' ongoing efforts to adapt to evolving preferences and technological advancements, all while aiming to deliver a product that resonates deeply with its target demographic.

Navigating the Rising Costs of Vehicle Ownership

Soaring Costs: The New Reality for Car Buyers

The cost of purchasing a vehicle has seen a dramatic increase, a trend exacerbated by the global pandemic. Both brand-new and pre-owned automobiles are demanding historically high prices, a situation that appears to be the new norm for the foreseeable future.

New Car Payments Climb to Record Highs

An analysis by Experian for the third quarter of 2025 indicates that the average monthly payment for a new vehicle has reached $748. Although this figure represents a slight decrease of $1 from the previous quarter, it marks a $12 increase compared to the same period in 2024, with the typical loan amount standing at $42,332.

Credit Scores and Payment Disparities: Who Pays More?

While the overall average is high, individual payments vary based on creditworthiness. Borrowers categorized as "near-prime," with credit scores ranging from 601 to 660, face the highest average monthly payments at $793. In contrast, "super prime" borrowers (scores 781-850) enjoy the lowest payments at $727, closely followed by "deep subprime" buyers (scores 300-500) who also pay around $748 monthly.

Interest Rates and Loan Amounts: A Deeper Dive

Deep subprime borrowers not only incur the highest interest rates, averaging 15.85%, but also typically secure the smallest new car loans, averaging $35,286. Conversely, near-prime borrowers tend to finance the largest amounts for new vehicles, with an average loan of $44,526.

Used Car Market: Elevated Prices and Payments Persist

The market for pre-owned vehicles has mirrored the new car segment, with prices continuing to rise in recent years. This has resulted in average monthly payments of $532 for a $27,128 loan in the last quarter. Similar to new car purchases, several factors influence the payment amount for individual buyers.

The Impact on Used Car Buyers: Deep Subprime at a Disadvantage

For used cars, deep subprime buyers face an average monthly payment of $556, which is $29 higher than the $527 paid by super prime buyers. Over a year, this translates to an additional $348. These buyers also contend with the highest interest rates, at 21.60%, for an average loan of $21,149.

Strategic Financing: A Key to Affordable Car Ownership

The current market makes both car acquisition and financing a complex endeavor. A borrower's credit score significantly impacts not only the type of vehicle they can afford but also their monthly financial commitment. It is highly recommended to explore financing options thoroughly before beginning the search for a new or used vehicle to ensure a sound financial decision.