Finance
A top goal of Americans is to buy a new car, build emergency savings: study
Approximately 22% of respondents to an Edelman Financial Engines survey mentioned their goal to buy a car in 2024. (iStock)
Americans are itching to buy new cars this year after a particularly difficult few years of record-high prices. About 22% of respondents to an Edelman Financial Engines survey said they were aiming to buy a new car in 2024.
This was just one goal survey respondents talked about most. The most prominent goal respondents wanted to achieve was saving for emergencies. More than half of those surveyed wanted to build or grow their emergency funds over the next year.
Similarly, Americans want to grow their overall wealth and save for their future. Nearly 47% of respondents wanted to grow their wealth while 42% wanted to increase their retirement savings.
Despite these lofty goals, many Americans understand that reaching them is difficult. That’s why 48% of Americans think they need help from a financial professional in order to accomplish their goals, according to the Edelman Financial study.
Comparing multiple insurance quotes frequently can potentially save you hundreds of dollars per year. It’s so easy to get a free quote in minutes through Credible’s partners here.
2024 looks like a buyers’ market for new cars
Good news is on the horizon for those considering buying a car this year. New inventory has increased by 36% year-over-year, according to data from Cars.com.
These inventory levels are closer to levels in February 2021 before shortages due to the pandemic started to affect dealerships and buyers. At the same time, search traffic on Cars.com is down for new cars, potentially helping buyers secure a better deal as dealers scramble to sell their inventory.
“2024 is probably the best year since the pandemic to buy a new car,” said Mark Schirmer, director of industry insights at Cox Automotive. “2021 and 2022 were really difficult years. Dealers are talking about discounts again…this was not happening 18 months ago. The shelves are full and there are more selections now.”
Car prices are also down slightly. The average price of newly listed cars on Cars.com was just over $49,000 in January, which is down from August 2023’s high of $50,253. Cars.com has seen a 137% increase in dealers’ EV inventory since last year. Their EV listings stay on the lot for 87 days on average, making it possible for buyers to score good deals.
Make certain you’re not overpaying for car insurance. With Credible, you can compare rates and lenders with the click of a button.
NEW CAR PURCHASES ARE ON THE RISE, BUT THERE ARE INSURANCE IMPLICATIONS
Auto insurance rates still stretching Americans’ wallets
Car prices may be coming down in 2024, but auto insurance rates are still trending up. The motor vehicle insurance index increased by 1.4% in January, according to the Bureau of Labor Statistics. Over the last year, the index increased by 20.6%.
One of the biggest insurance companies in the country, State Farm, has raised auto rates in California by 21%, the San Francisco Standard reported. These increases are likely to affect five million Californians. Initially, the company wanted to raise rates by 24.6% due to increased claims from more frequent wildfires and high construction costs.
“Carriers are playing catch-up to rate — which everyone hates,” said Karl Susman, president of the Susman Insurance Agency in Los Angeles. “I hate it too. I don’t like getting clients calling about rates going up 20, 30, 40%.”
Allstate also plans to raise its rates throughout the country, reported Insurance Business Magazine. The company plans to raise rates by 30% in California, 14.6% in New York and 20% in New Jersey. These rate hikes are expected to increase premiums by roughly $1 billion in total across the three states.
Your specific car insurance rate will vary based on several factors, including your credit, driving habits and the insurance company. Use a tool like Credible to shop around and lower your car insurance premium today.
CAR INSURANCE COSTS WILL CONTINUE TO INCREASE IN 2024: STUDY
Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.
Workers setting up the TuSimple booth for CES 2022 at the Las Vegas Convention Center on Jan. 3, 2022.
Alex Wong | Getty Images News | Getty Images
Embattled Chinese autonomous trucking company TuSimple has rebranded to CreateAI, focusing on video games and animation, the company announced Thursday.
The news comes as GM folded its Cruise robotaxi business this month, and the once-hot sector of self-driving startups has started to weed out stragglers. TuSimple, which straddled the U.S. and China markets, had its own challenges: concerns over vehicle safety, a $189 million settlement of a securities fraud lawsuit and delisting from the Nasdaq in February.
Now, just over two years after CEO Cheng Lu rejoined the company in the role after being pushed out, he expects the business can break even in 2026.
That’s thanks to a video game based on the hit martial arts novels by Jin Yong that’s slated to release an initial version that year, Cheng said. He anticipates “several hundred million” in revenue in 2027 when the full version is launched.
Before the delisting, TuSimple said it lost $500,000 in the first three quarters of 2023, and spent $164.4 million on research and development during that time.
Company co-founder Mo Chen has a “long history” with the Jin Yong family and started work in 2021 to develop an animated feature based on the stories, Cheng said.
The company claims its artificial intelligence capabilities in developing autonomous driving software give it a base from which to develop generative AI. That’s the next-level tech powering OpenAI’s ChatGPT, which generates human-like responses to user prompts.
Along with the CreateAI rebrand, the company debuted its first major AI model called Ruyi, an open-source model for visual work, available via the Hugging Face platform.
“It’s clear our shareholders see the value in this transformation and want to move forward in this direction,” Cheng said. “Our management team and Board of Directors have received overwhelming support from shareholders at the annual meeting.”
He said the company plans to increase headcount to around 500 next year, up from 300.
Cutting production costs by 70%
While still under the name TuSimple, the company in August announced a partnership with Shanghai Three Body Animation to develop the first animated feature film and video game based on the science fiction novel series “The Three-Body Problem.”
The company said at the time that it was launching a new business segment to develop generative AI applications for video games and animation.
CreateAI expects to lower the cost of top-tier, so-called triple A game production by 70% in the next five to six years, Cheng said. He declined to share whether the company was in talks with gaming giant Tencent.
When asked about the impact of U.S. restrictions, Cheng claimed there were no issues and said the company used a mix of China and non-China cloud computing providers.
The U.S. under the Biden administration has ramped up limits on Chinese businesses’ access to advanced semiconductors used to power generative AI.
Stocks making the biggest moves premarket: MU, LW, DRI
Bank of England holds rates but vote split surprises markets
Artificial Intelligence and Machine Learning: Transforming the Future
New 2023 K-1 instructions stir the CAMT pot for partnerships and corporations
Are American progressives making themselves sad?
U.S. Beneficial Ownership Information Registry Now Accepting Reports
-
Finance1 week agoStocks making the biggest moves after hours: ORCL, AI, MTN, PL
-
Accounting1 week agoReplacing mortgage deduction may boost homeownership
-
Personal Finance1 week agoThe Fed cut interest rates but some credit card APRs haven’t gone down
-
Accounting1 week agoIt’s time to get your WISP in order
-
Accounting1 week agoPCAOB staff report outlines 2025 inspection priorities
-
Accounting1 week agoBig changes expected at SEC under new chair Paul Atkins
-
Accounting1 week agoCanada pressured to respond to Trump’s tax cut regime
-
Leaders1 week agoRishi Sunak, The politic and the Successful Businessman