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.
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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.
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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
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Yoni Assia, Co-Founder and CEO of eToro, speaks during the Milken Institute Global Conference in Beverly Hills, California, on May 2, 2023.
Patrick T. Fallon | Afp | Getty Images
In eToro‘s IPO filing, ahead of the company’s market debut on Wednesday, the stock trading platform spent over 1,500 words spelling out the potential risks of operating in Israel, home to corporate headquarters.
While the current military conflict between Israel and Hamas hasn’t “materially impacted” business, “the continuation of the war and any escalation or expansion of the war could have a negative impact on both global and regional conditions and may adversely affect our business, financial condition, and results of operations,” eToro wrote in a section of the filing titled “Risks related to our operations in Israel.”
The company, which lets users trade stocks, commodities and cryptocurrencies, was founded in 2007 by brothers Yoni and Ronen Assia and David Ring, and is based in Bnei Brak, near Tel Aviv.
In its prospectus, eToro referenced the attacks of Oct. 7, 2023, by Palestinian Islamist group Hamas on Israel. In the year and a half since then, the two sides have mostly been at war in the Gaza Strip, where tens of thousands of Palestinians have been killed and much of the area has been made uninhabitable.
Tensions have also escalated with other designated militant groups in the region, including Hezbollah in Lebanon and the Houthis in Yemen.
“It is possible that these hostilities will escalate in the future into a greater regional conflict, and that additional terrorist organizations and, possibly, countries, will actively join the hostilities,” eToro wrote, adding that the magnitude of the conflict is “difficult to predict.”
Yoni Assia, eToro’s CEO, told CNBC in an interview that the company’s business is global, with operations worldwide. Regarding the challenges of being in Israel, Yoni Assia said “everything is in the risk factors.”
“We do hope to see more peaceful times,” he said. “It’s better for everyone and for our employees from a business point of view.”
EToro, which competes with Robinhood, had its Nasdaq debut on Wednesday. The stock popped 29% a day after eToro priced shares above the expected range. At the close of trading, the company was valued at about $5.4 billion.
EToro’s IPO comes as several tech companies get set to test the public markets following an extended drought dating back to the soaring inflation of 2022.
After the attacks of Oct.7, thousands of Israelis were called up for extended active reserve duty that caused some disruption to the country’s flourishing tech community. Ongoing obligations could “impact our competitive position and cause our sales to decrease,” eToro wrote.
Israel has also faced some backlash for its military campaign in Gaza.
The eToro filing cited International Criminal Court warrants for the arrests of Prime Minister Benjamin Netanyahu and his former minister of defense, and calls for boycotts from activist groups as potential roadblocks for the business.
The country has also been hit with credit downgrades from Fitch, Moody’s and S&P Global that could harm eToro’s operations, the filing said.
Etoro said that intensified cyberattacks since 2023, and potential damages from armed attacks, could raise costs or incapacitate its workforce due to safety concerns.
The company also highlighted tax law differences between the U.S. and Israel and the location of its executives as a potential risk factor.
“It may be difficult to enforce a U.S. judgment against us, our officers and directors in Israel or the United States, or to assert U.S. securities laws claims in Israel or serve process on our officers and directors,” eToro wrote.
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