Cars

Volkswagen ID.Buzz to Skip 2026 Model Year, Return in 2027

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.

Car Payments Reach Unprecedented Levels: New Record High of $748 Monthly

The financial landscape for car buyers has become increasingly challenging, with monthly vehicle payments reaching new peaks. This trend is a direct consequence of escalating car prices, a phenomenon that intensified during the pandemic and shows no signs of abatement.

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.

Credit Score RangeAverage New Monthly Car PaymentAverage New Auto Loan Interest RateAverage New Auto Loan AmountAverage New Loan Terms (Months)
Super Prime (781-850)$7274.88%$40,53464.80
Prime (661-780)$7546.51%$44,48072.21
New Prime (601-660)$7939.77%$44,52675.03
Subprime (501-600)$78013.34%$39,84174.30
Deep Subprime (300-500)$74815.85%$35,28672.66

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.

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Ram Issues Recall for HD Trucks Over Airbag and Traction Control Malfunctions

Ram has announced a significant recall affecting more than 52,000 heavy-duty pickup trucks from its 2025 lineup. The primary concern revolves around a defective Occupant Restraint Control (ORC) module, which could lead to critical safety system failures. This malfunction poses a serious risk by potentially disabling both the traction control and airbag systems, thereby elevating the likelihood of collisions and passenger harm. The automaker plans to address this issue by providing a software update for the ORC module, ensuring that all affected vehicles meet safety standards and mitigate potential dangers for drivers and passengers.

This recall underscores the importance of stringent quality control in vehicle manufacturing and highlights the continuous efforts by regulatory bodies like the National Highway Traffic Safety Administration (NHTSA) to safeguard public safety on the roads. For vehicle owners, timely attention to recall notices and prompt action in seeking necessary repairs are crucial steps in preventing accidents and ensuring the reliable operation of their trucks.

Understanding the Ram HD Truck Recall

Ram has launched a recall impacting 52,565 heavy-duty pickup trucks from its 2025 model year fleet. This action is prompted by a significant issue concerning the Occupant Restraint Control (ORC) module, which, if faulty, can lead to the incapacitation of crucial safety systems. Specifically, the defect may cause the traction control system to shut down and the driver's airbag to become non-operational, thereby contravening established federal safety mandates. The affected truck series include the Ram 2500, 3500, 4500, and 5500 models, all of which are subject to this urgent safety measure to prevent potential hazards on the road.

The root of this problem lies in the ORC module's potential to transition into an offline state during vehicle operation. When this occurs, the Electronic Stability Control (ESC) system may also disengage automatically, which is a direct violation of federal safety regulations and significantly heightens the risk of a crash. Furthermore, an inactive ORC module means the driver's airbag might not deploy in the event of an accident, drastically increasing the probability of severe injuries. Ram has initiated the notification process for dealerships, and vehicle owners are expected to receive official recall letters by mid-January. The proposed solution involves a software update to the ORC module, aiming to rectify the defect and restore full functionality to these vital safety features.

Impacts of the ORC Module Malfunction

The failure of the Occupant Restraint Control (ORC) module in the recalled 2025 Ram HD trucks has direct implications for vehicle safety. There are no preliminary warnings before the ORC module fails, which means drivers could be operating their vehicles without crucial safety systems. Once the module goes offline, however, drivers will notice multiple warning lights illuminate on the instrument panel, including those for the airbag, Anti-lock Braking System (ABS), and seatbelt, signaling the system's malfunction.

Ram is committed to resolving this safety issue promptly. Dealerships have already been informed about the recall, preparing them to handle the influx of affected vehicles. Owners of the affected Ram 2500, 3500, 4500, and 5500 trucks will be notified by mid-January. The repair process involves a software flash to update the ORC module, ensuring that the traction control and airbag systems function as intended, thereby restoring the vehicles to federal safety compliance and ensuring the well-being of occupants.

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