- ASOTU Daily Pushback
- Posts
- 🚗 Carvana in Hot Water
🚗 Carvana in Hot Water
🚙 Profitability Shifts, Bombshell Reporting, and EV Credit Updates
TOGETHER WITH
Welcome to the first full week of 2025, friend!
We’ve got a fresh day, week, and year to tackle, and we’re ready to get after it.
What’s at the top of your to-do list today?
Keep Pushing Back,
-Paul, Kyle, Chris & Kristi
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🎵 High Notes and Hard Hits
💸 Big Payments, Bigger Loans
Shoppers are leaving dealerships with record-high loans. Edmunds data shows 18.9% of buyers now face $1,000+ payments—a first for the market. With loan amounts climbing to $42,113 and 0% financing nearly extinct, affordability is becoming elusive. Even though interest rates dipped to 6.8% in Q4, buyers are still stretched.
🔥 Carvana Under Fire
After a 284% stock surge in 2024, Carvana’s facing serious allegations from Hindenburg Research. Claims include $800M in suspect loan sales, insider stock cash-outs, and accounting tricks to boost income. Carvana fired back, calling the report “intentionally misleading”, but shares still dipped 1.9%.
🎢 Tesla Slips, Subaru Soars
2024 wasn’t Tesla’s year—it posted its first annual sales drop in over a decade, despite offering 0% financing and free charging perks. Total sales fell 1.1% to 1.79M units. Meanwhile, Subaru rode high, ending the year with a 5.6% increase in sales and a 7.1% jump in December alone. The Crosstrek and Solterra were Subaru’s stars, setting record highs.
Read the Full Digest
Get the full scoop on these stories and more. Dive into the latest trends shaping the auto industry—read here!
🎥 The Heart Behind the Hustle
Kick off the new year with something inspiring!
Check out More Than Cars—the perfect blend of heart, hustle, and human stories.
Hosted by our very own Paul J Daly and Kyle Mountsier, this docuseries dives deep into the people, passion, and purpose driving dealerships across the country.
Add some inspiration to your watchlist with More Than Cars—streaming now on Prime Video, Tubi, or YouTube!
⚡️ New Year, New EV Credit Rules
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The $7,500 federal tax credit for EVs and PHEVs got an update for the new year. And while the eligibility list has tightened due to stricter battery sourcing requirements, it offers dealers a new tool to close deals faster by applying the credit upfront.
Upfront Savings: Dealers can now directly apply the credit at the time of purchase, cutting prices instantly—a strong selling point for budget-conscious buyers.
Buyer Income Caps: Same as last year—$300K for joint filers, $150K for individuals—making it crucial to guide customers on whether they qualify before applying the credit.
Used EVs: Qualifying used EVs priced under $25K can get up to a $4,000 credit (now also available at the point of sale).
Smaller Selection: Big names like the Nissan Leaf, Chevy Bolt, Rivian R1S, and Volkswagen ID.4 are no longer eligible. Meanwhile, the list of plug-in hybrids shrank from seven models last year to just one in early 2025. Here is a complete list of all the makes and models no longer approved for the tax credit.
VIN Check: Find more information on eligible vehicles here, or check a particular VIN here.
EVs and PHEVs Eligible for a Federal Tax Credit in 2025
Cars.com
AROUND THE ASOTU-VERSE
🗓️ Coming Soon
📝 January 30th— Public Policy Day with WANADA and the Washington, D.C. Auto Show.
🦀 May 13-16th— ASOTU CON in Baltimore, Maryland.
🥊 Quick Hits
Tesla's limited edition mezcal is now available for a smooth $450. 🥃
The U.S. Department of Transportation hit JetBlue with a $2M fine for chronically late flights. ✈️
To improve pedestrian and cyclist safety, California’s new daylighting law bans parking within 20 feet of any crosswalk. 🔆
A Florida company has been given the green light to build a road using radioactive waste. Experts say the public won’t be harmed, but teenage mutant ninja turtles are likely. ☢️
🔁 Today in History
1639: Virginia orders half of its tobacco crop destroyed to support plunging prices and avoid an economic catastrophe. 🌱
1838: Samuel Morse and Alfred Vail demonstrate their telegraph machine. 📠
1912: New Mexico becomes the 47th state of the Union. 🇺🇸
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