Welcome back to the CarDealershipGuy newsletter. The best fix for all your automotive needs.
- 📈 All Out Of Wack
- 🔙 EV Tax Credit Is Back... Almost
- 🤝 Merger Of The Week
- 📖 Articles I Read This Week
Read Time: 3 Minutes & 59 Seconds
Was this email forwarded to you? Subscribe here.
All Out Of Wack
Back at you again with another record breaking stat.
This week we broke the previous record set just a few weeks ago in June for the average price paid for a new vehicle.
We went from a record breaking number of $48,083 in June to the new record of $48,182. Keeping us well in the 48K range.
The car brands with the highest price above MSRP are Land Rover, Kia, Honda, and Hyundai which are selling at an average increase of about 5-8% over MSRP. Then on the other side you have brands like Lincoln, Buick, Volvo, Ram and a few others selling at around 1% below MSRP.
Even though supply chain constraints are easing and more cars are being produced we are still at new car levels that are far lower than we are used to. So yes as far as new cars go things are getting better but we still have a long way to go till we are anywhere back to the supply levels we were at before COVID.
If you are looking for a new car out there and are still on that pre COVID budget there are still options. Look for cars that fall into the compact, sub-compact, and SUV categories. As cars in these categories sell for prices 30-40% lower than the current industry average.
But if you are looking for something not in those categories things are still pretty tough out there. So good luck and maybe consider switching to getting a used car.
EV Tax Credit Is Back... Almost
For those of you that pay attention to politics then you may have already heard that there is a new bill in town. This new bill called the Inflation Reduction Act of 2022 and it is jam packed with a bunch of insights and changes that effect the car market.
And I know none of you have the time to read the bill for yourselves. So here are my top 5 takeaways that relate to the auto industry:
- Right now there is a 200,000 EV limit set by the government. This is the threshold of when the federal tax credit is no longer available for that companies EVs. Meaning as a consumer you will not get that $7,500 credit if that company has sold more than 200,000 EVs. Well, if this bill gets passed that goes bye bye and a new expiration date of December 34, 2032 takes the limits place.
- The tax credit received when purchasing a new EV will remain at $7,500.
- The materials used in EV batteries must be at least 40% from American mines or countries that have free trade agreements until 2024.
- There will be an income limit for who can use this tax credit. You must either make under 150K or 300K as a joint filer.
- Used EVs would now be available to receive $4,000 in tax credit. But it can only be used once per car and the car must be worth less than $25,000.
This is a LONG bill so I don’t blame you for not wanting to read it all. But if this does pass then I would suggest reading through it to make sure you can maximize everything it has to offer.
This Weeks Newsletter Is Brought To You By 180 Degrees Design + Build.
Do you drive a nice car? Maybe a brand new Tesla, Range Rover, or perhaps even something a little fancier like a Ferrari or Lambo?
If you are one of these people, congrats! I am sure you have waited a long time to be able drive one of those beautiful pieces of machinery.
But, let me ask you a question.
Does your house match the quality of your luxury car?
If your answer was no. Do yourself a favor and contact 180 Degrees. The premier design build firm of high end luxury custom homes.
Because I think we can all agree that every luxury car deserves a luxury home.
Want your ad to appear here? Reply to this email or fill out this form.
Merger Of The Week
With a new week comes a new merger.
This week we got Shift Technologies and CarLotz coming together to continue under Shift Technologies bringing the strengths of both their businesses to hopefully make them a better singular business than two separate ones.
Because of the merger there was some spring cleaning and the current CarLotz CEO is stepping down and the current Shift president will be taking the CEO position.
CarLotz says that it plans on using Shift Technologies inventory acquisition software along with their ability to do at home deliveries to help accelerate and expand CarLotz business.
Shift Technologies on the other hand plans on using CarLotz strong east coast footprint to help scale its own side of the business.
Although I believe one of the biggest reasons that called for this merger was that CarLotz has a pretty hefty cash balance and Shift on the other hand is pretty low on cash and high in debt. Leading to a perfect opportunity for Shift to turn things around with a single merger.
I really hope that this pans out for the both of them because last time I checked CarLotz and Shift were not doing so hot.
So fingers crossed for the both of them and lets see how they perform as a merged business.
Articles I Read This Week
- Elon Musk appears to be selling more shares of Tesla. I wonder what he is up to?
- Wish I had this for my family road trips as a kid.
- I hate to say it. But I called it. Sorry Vroom.
- Pokemon Go was sick. I wonder what it will look like in a car?
- I get it Honda. I like putting off doing the dirty dishes too.
Thank you for joining me again here on the CarDealershipGuy newsletter. See you next week!
Want to place an ad on an upcoming CarDealershipGuy newsletter? Reply to this email and I will be in touch.
What did you think of this newsletter?
Here's your chance to tell me what you really think...
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.