In January 2025, new-vehicle affordability reached its best level in 41 months, according to the Cox Automotive/Moody’s Analytics Vehicle Affordability Index. This improvement was driven by lower vehicle prices, which typically drop in January, following a surge in luxury brand sales in December. The average price of new vehicles decreased by 2.2% for the month, while incomes grew by 3.6% YoY. Despite a slight increase in loan rates to 10.09%, higher incomes and lower prices helped offset the impact of reduced incentives. The typical monthly payment for a new vehicle declined by 1.3% to approximately $755, down 1.7% from the previous year, and the median weeks of income needed to purchase an average new vehicle decreased to 37.7 weeks from 38.2 weeks in December. This marks a significant improvement from January 2024, when buying a new vehicle took 39.6 weeks of median income.
In 2025, the automotive finance and leasing industry is expected to continue its shift from traditional financial products to more flexible, customer-centric solutions. Value-added products like maintenance agreements, extended warranties, and vehicle insurance are becoming more popular, offering a broader range of services to customers. The trend toward usage-based models is also growing. Consumers are increasingly opting for personal leases and renting over outright purchases due to the associated risks and the rise of alternative mobility solutions. Subscription and user-based models, which provide flexible vehicle access without long-term commitments, are gaining traction. The adoption of EVs in corporate fleets is accelerating, driven by fiscal changes and government incentives/mandates for greener fleets. Overall, the industry is moving toward more integrated and service-oriented offerings, with a focus on flexibility and customer satisfaction.
In February 2025, fuel prices in America experienced a slight dip, with the national average for gasoline falling to $3.12 per gallon. This decrease was attributed to lower demand and increased supply. However, the trend might reverse due to potential tariffs on imported crude oil, which could drive prices up. The report highlights regional variations in fuel prices, with the West Coast seeing the highest prices at $4.03 per gallon, while the Gulf Coast had the lowest at $2.69 per gallon. Diesel prices also saw a minor decrease, averaging $3.67 per gallon. The potential tariffs are a significant concern for the market, as they could lead to higher costs for consumers and businesses alike. The impact of these tariffs will depend on their extent and duration, as well as the market’s ability to adapt to the changes. Overall, while the current dip in fuel prices offers some relief, the looming threat of tariffs could alter the trend, making it essential for stakeholders to stay informed and prepared for potential fluctuations.
In January 2025, the EV market showed notable trends in both new and used segments. New EV sales volume reached 102,243 units, marking a 29.9% YoY increase. Despite a month-over-month decline following December’s record sales, market share hit a record high, indicating strong consumer interest. The top-selling models were the Tesla Model Y, Model 3, Volkswagen ID4, Tesla Cybertruck, and Honda Prologue, which together accounted for approximately 54% of total EV sales. The used EV market also grew, with sales increasing by 3.5% to 26,933 units, representing a 30.5% YoY growth. The leading brands were Tesla, Chevrolet, Mercedes-Benz, Ford, and Nissan, with Mercedes-Benz showing a significant month-over-month increase. Inventory dynamics revealed that new EV days’ supply rose by 5.3% month-over-month to 87 days, while used EV days’ supply tightened to 45 days, reflecting high demand. The average transaction price for new EVs was $55,614, a slight increase from the previous month but a decrease from the previous year. Overall, the EV market in January 2025 demonstrated robust growth and evolving consumer preferences, with both new and used segments showing strong performance.
In 2025, fleet managers are grappling with the challenges of EV shortages, evolving regulations, and the practicalities of compliance. Hermanson highlights the disconnect between regulatory mandates and the current capabilities of EV technology. While he supports EV adoption for its long-term environmental benefits, he points out that mandates are advancing faster than the development of viable EV solutions for vocational fleets. CARB leads in emissions regulations, with other states like Washington considering similar policies. However, the technology for electric pickups and cargo vans, essential for his fleet, is not yet sufficient. Current EV models, such as the Ford E-Transit and Mercedes-Benz eSprinter, fall short in range and payload capacity, making them impractical for many fleet applications. Birdsell also mentions the regulatory uncertainty, with the EPA potentially modifying or eliminating CARB’s authority. This adds to the complexity of compliance, as fleet managers must stay ahead of changing rules without practical solutions from manufacturers. Despite these challenges, Hermanson remains committed to navigating the regulatory landscape and finding ways to integrate EVs into his fleet. The company emphasizes the need for realistic solutions that align with the operational demands of vocational fleets, advocating for a more balanced approach to emissions regulations and EV adoption.
Rivian Automotive has made its Rivian Commercial Van (RCV) available nationwide to fleets of all sizes in the US. Previously exclusive to Amazon, the all-electric van is now accessible to businesses seeking sustainable fleet solutions. The RCV comes in two sizes, RCV 500 and RCV 700, with a payload capacity of up to 2,663 lbs and a Gross Vehicle Weight Rating of up to 9,500 lbs. It features advanced safety technologies like automatic emergency braking, collision warnings, and 360-degree visibility. Rivian’s proprietary software enhances fleet management by managing vehicle operations. Over 20,000 Rivian Electric Delivery Vans are already in Amazon’s fleet, delivering over a billion packages in 2024. This expansion allows businesses to purchase single vans or large fleets, making it versatile for various needs. Rivian aims to accelerate zero-emission transportation and support environmental sustainability. Additionally, Rivian has finalized a $6.6 billion loan agreement with the US Department of Energy (DOE) to build a new manufacturing plant in Stanton Springs North, Georgia. This facility will bolster EV sales, create over 7,500 jobs, and ramp up production of Rivian’s upcoming R2 SUV and R3 crossover models. Construction is set to begin in 2026, with production starting in 2028. The Stanton Springs North site is strategically located near Atlanta and is set to become a benchmark for modern automotive manufacturing, supporting Rivian’s vision to expand its market presence and accelerate the transition to electric mobility.
New York’s Midtown Bus Terminal project has secured a $1.9 billion loan to support its $10 billion replacement and expansion. The project aims to modernize the 73-year-old terminal to meet future commuter growth and enhance the customer experience. The new facility will include a 2.1 million square foot main terminal, a separate storage and staging building (equipped with charging capacity for electric buses), and new ramps leading in and out of the Lincoln Tunnel. The project will also create nearly 3.5 acres of publicly accessible open space, improve connectivity for pedestrians, and add new street-facing concessions and retail amenities. The terminal will feature improved facades to enhance its visual appeal. Governor Kathy Hochul and Mayor Eric Adams emphasized the project’s importance for economic development and infrastructure modernization. The city has committed 40 years of tax revenue from three potential new commercial developments to help fund the project. Construction of a temporary terminal and new ramps is expected to begin in 2028, with the main terminal’s completion slated for 2032. This investment aims to transform the terminal into a state-of-the-art facility, reducing congestion and improving the commuter experience in Midtown Manhattan.
The New Terminal One project at John F. Kennedy International Airport in New York will deploy a fleet of all-electric ground service equipment, making it one of the world’s greenest airline terminals when it opens in 2026. Ground support equipment provider TCR will supply the terminal with electric aircraft towing vehicles, passenger boarding stairs, refueling trucks, cargo handling equipment, and baggage loaders. This initiative supports the Port Authority’s goal of achieving net-zero greenhouse gas emissions from the region’s airports by 2050. The New Terminal One is part of a $19 billion redevelopment project and will be the largest terminal at JFK, more than twice the size of the current Terminal 1. It will also feature the largest airport solar array in the US, providing 50% of the terminal’s electric power. This centralized all-electric ground service equipment model reduces environmental impact, improves costs, and optimizes equipment usage compared to the conventional model, where ground handlers individually own or lease their equipment. Overall, the New Terminal One aims to set a benchmark for modern, sustainable airport operations, aligning with broader environmental goals and enhancing operational efficiency.
As we move further into 2025, the automotive and infrastructure industries are clearly evolving to meet the demands of a changing world. From the improved affordability of new vehicles and the growing adoption of electric cars, to the shift towards more sustainable and customer-focused solutions, these trends are shaping the future of transportation. At the same time, major infrastructure projects like the Midtown Bus Terminal and JFK’s new terminal underscore the importance of modernization and environmental responsibility. Together, these advancements point to a future where innovation and sustainability go hand in hand, driving progress and improving the overall experience for consumers and businesses alike.