TOGETHER WITH

Howdy Fam,

Today, we’re looking at some affordability claims. Specifically, how it is forcing creativity at every level of the business, from the showroom to the boardroom to the engineering bench.

Of course, creative ways to connect is our favorite thing to talk about.

We build a collection of AI prompts you can use before, during, and after NADA to ensure you don’t miss a connection while you're on the floor in Vegas.

Keep Pushing Back,
-Chris with Paul, Kyle & Kristi

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Much of the crew is live at Public Policy Day in DC today, and we’re thrilled to be here thanks to our partners at SafeRide.

While most cars still lack basic safety tech, SafeRide is changing the game with a palm-sized device that gives nearly any vehicle modern features like automatic braking, lane centering, and pedestrian detection.

Their goal is simple: save lives by making safety more accessible.

Follow along as we share highlights, insights, and real talk from where policy meets the pavement thanks to our pals at Saferide!

Chevrolet National Dealer Council chairman Andy Guelcher says affordability is the industry’s biggest hurdle heading into 2026. Customers coming off three-year leases are staring at payments $300 to $400 higher than before, and he warns that $1,000-plus monthly payments are unsustainable.

He says the fix requires creativity across:

Inventory discipline has helped protect gross, but it raises the bar on getting the right mix of lower-priced models onto lots. EV demand has cooled without incentives, so off-lease used EVs may drive near-term adoption by improving value and normalizing ownership. He points to lower-MSRP options like the Equinox EV and the returning Bolt, both under $30,000, as key levers.

The morning show echoed this: communicating payments and options will be a separator in 2026.

Following dealer-side affordability pressure, the same constraint is emerging at the OEM level.

Volkswagen’s core brands are planning structural changes to save roughly €1 billion by 2030, including:

The takeaway is the same: when payments strain consumers, everyone in the chain gets more disciplined. Dealers work deals more creatively, and manufacturers reshape cost structures to protect pricing, margins, and long-term viability.

A different affordability signal is showing up through partnerships.

Aston Martin says it is very open to eventually developing a road car with Honda after their new Formula 1 alliance. There are no production plans yet, but both companies point to racing as a proving ground for technology, efficiency, and shared investment.

Even when the conversation starts with supercars, the broader lesson matters: sharing platforms, powertrains, and engineering expertise helps brands stay innovative without pushing prices even higher. In an affordability-driven market, collaboration becomes a competitive advantage.

Cox Automotive’s mid-January snapshot shows wholesale used prices running hotter than normal to start 2026:

Dealers are leaning in ahead of tax season, building spring inventory while loan rates give shoppers some relief. That is the practical backdrop for today’s headlines, and it sets up the real question for operators: how you source inventory, structure payments, and communicate value is how you win when affordability is tight.

Thanks for reading, Friend! We feel pretty lucky that consumers are shifting toward shopping for a trustworthy dealer before they start shopping for their car. That basically means they’re looking for the people we write for. Small world.