#763 - 🚗 Dealers Face 4-Month Squeeze

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Wonderful Wednesday, Friend!

Midweek already? Time sure does fly, but there's plenty unfolding in the retail auto world to help us slow down and smell the coffee.

Today we have some insights on tightening auto credit, a new idea from Ford in Texas, and a peek into China's global EV growth.

Plus, we're spotlighting a touching tale of community unity where a dealership steps up to replace a stolen van for a nonprofit.

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

Data, Ford, and Musk

Some Data From Cox

Auto Credit Availability Tightens (Again)

Auto credit availability has been tightening for four consecutive months, creating challenges for dealers as customers find it increasingly difficult to secure loans, especially for used vehicles.

• Credit Availability Index: Dropped to 92.9 in July, down 1.0% from June and 1.5% year-over-year.

• Biggest Impact: Used car loans through franchised dealers are seeing the most significant tightening.

• Lenders Pulling Back: Banks are leading the way in tightening credit, marking the fifth consecutive month of stricter lending.

Customer Challenges

Although auto loan rates dipped slightly in July, the spread between these rates and other investments has widened, making loans less appealing to customers. Additionally, more buyers are dealing with negative equity, where they owe more on their old car than it's worth, adding further risk for lenders.

Consumer Confidence: Mixed Signals Affecting the Market

Consumer sentiment is sending mixed signals—while there's some optimism about the future, concerns over the current economic situation, including high vehicle prices and interest rates, could dampen buyers' willingness to purchase.

Ford's Texas Power Play: Free EV Charging for Off-Peak Texans

Ford and TXU Energy will offer Texas residents with select Ford EVs free home charging during off-peak hours (7:00 PM to 1:00 PM).

Qualifying vehicles include the F-150 Lightning and Mustang Mach-E. Participants get a $100 reward card from Ford and $250 from TXU annually. The program runs through 2026. 

Musk Vs Tesla?

In a recent interview with Trump, Elon Musk defended the oil and gas industry, suggesting there's ample time (50-100 years) to transition to sustainable energy, a stance that contradicts his usual climate advocacy.

Could these mixed messages impact Tesla's stock, especially as investors weigh the company's long-term commitment to clean energy?

We aren’t totally sure Elon knows who buys Teslas.

TOGETHER WITH BILL

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MORE THAN CARS MOMENTS

Van To The Rescue

We love to share stories that embody what it means to "Love people more than we love cars." Our community is filled with people who are willing to step up and make a difference when it counts.

Recently, Mercy Education Project in Detroit, a nonprofit dedicated to helping women and children, had its van stolen. This van is crucial for taking kids on summer adventures and learning trips—opportunities they might not have otherwise.

When local reporter Hank Winchester heard about it, he reached out for help. Mike Cavanaugh from Lithia & Driveway responded immediately, later telling the ASOTU team:

"One of the things that makes me love our industry is how we come together when it matters. Hank at Channel 4 first called a competing dealer, who's a friend of mine. They didn't have any vans, so he reached out to me. Within five minutes, we secured the van these folks needed.

Many of us, as dealers, deal with car theft regularly, and while it's frustrating, we move on. But this organization relied on that van for so many things and had no way to replace it. We all know how rare passenger vans are. We had 12,000 vehicles in inventory in Michigan and only two vans like this. It warmed my heart to see how quickly our GMs were ready and willing to help."

This isn't just about replacing a van; it's about the retail auto community standing on its business together to ensure no one is left behind. That's what it means to love people more than we love cars.

BUSINESS CONT’D

China in the U.S., BMW, and Rimac

China Electrifies Global EV Market: Implications for the U.S.

China's dominance in the EV market is growing, with significant global impacts. Here's what you need to know:

• Global EV Sales Surge: Worldwide EV sales increased by 21% in July, with China leading at 880K units sold, a 31% year-over-year rise.

• China's PHEV Growth: Plug-in hybrid sales in China surged 70% in the first seven months of 2024, reflecting strong demand for hybrid technology.

• BYD's Leadership: BYD, China's largest EV maker, saw a 13% rise in BEV sales and a 44% jump in PHEV sales, reinforcing its top global position.

• Zeekr's Innovation: Zeekr introduced a fast-charging battery that charges from 10% to 80% in 10.5 minutes, outpacing The competition. This will debut in the 2025 007 sedan.

• European Challenges: Europe's EV sales declined by 7.8% in July, with Germany down 12%, highlighting regional struggles.

• North American Growth: The U.S. and Canada saw a 7.1% increase in EV sales in July, showing moderate but steady progress.

BMW App Challenges Range Anxiety

BMW's new app update lets gas-powered car drivers simulate EV performance on their regular routes, showing how many trips could be completed on a single charge.

The app also includes a Charging Wallet feature for managing payments and checking spot availability. BMW sold over 190,000 EVs in H1 2024, up 25% year-over-year. 

Radical Rimac

Rimac is set to unveil a "Radical" new hypercar at Monterey Car Week, teasing what could be an extreme version of the Nevera or a brand-new model.

A teaser image shows a striking front end, hinting at something truly extraordinary. With a countdown already underway, the official reveal is imminent.

Don’t worry. The car doesn’t actually turn into liquid. That is just a clever marketing image.

AROUND THE ASOTU-VERSE

Coming Soon

👨‍⚖️ August 19th — Paul and Kyle judging the Automotive Amplifiers Contest with Reynolds & Reynolds in Leesburg, VA.

🌴 August 20-24th — NAMAD Conference in Miami, FL.

🍎 September 16th — The Welcome Conference in NYC.

🦀 May 13-16th, 2025 — ASOTU CON in Baltimore, Maryland.

Quick Hits

• Rice University engineers have developed a revolutionary reactor system that converts nitrate-contaminated water into green ammonia and purified water. 💧 

• The Biden administration has proposed new rules to make canceling subscriptions easier. ❌ 

• Deep Sky is set to build the world's first commercial carbon removal facility in Alberta, Canada, aiming to capture 3,000 tons of CO2 annually. 🌲 

History

• 1893: The first automobile license plate laws are introduced. 🍽️ 

• 1909: First motorized event at Indianapolis Motor Speedway. 🏁 

• 1945: President Truman announces Japan has accepted terms for unconditional surrender following the second nuclear bomb on Nagasaki. ☮️ 

Thanks for reading, friend! We hope this email was a healthier alternative to doom-scrolling. Now, let’s put all this info to work making our space, team, life, and community stronger. See you on the other side!