➰ Electric Leasing Loophole

TOGETHER WITH

Only you can decide if Thursday will feel like Wednesday part 2 or Friday part 1 for your team and customers.

Shopping or looking for service, people trust us with more than their car; they trust us with their time.

So in the spirit of respecting time, thanks for sharing yours with us today and every time you read, watch, or listen to something we've made.

Keep Pushing Back
-Paul, Kyle, & Chris

DEALERS

Building Bikes for Belvidere

Hamblock Ford Lincoln recently hosted its 7th Annual "Build a Bike" event, where they distributed over 100 bicycles and accessories to deserving children in the community.

For each $125 donation, a local child received a bike, helmet, bike lock, and a goody bag filled with even more treats from sponsors. The contributions were made possible through generous donations from businesses all over Belvidere, Illinois.

Joe Hamblock, the owner of Hamblock Ford Lincoln, expressed his own child-like delight in witnessing all of the excitement, “Seeing the kids get the bikes is the highlight of the whole event! What’s really cool is the whole community gets together and supports [us].”

Telling it like it is - To some a bike may seem like wheels and metal, but to a child, it is a taste of freedom and adventure.

Do you have a story showing dealerships or their people going above and beyond for their community? Hit reply or submit through /Positivity, and we will feature them here in the Daily Push Back email!

AUTOMOTIVE

Learning The Lease Loophole

Quick background. ⏳ The new EV tax credit requirements have changed the industry (and then changed it some more). For example, in April, EVs qualifying for credits dropped dramatically due to new sourcing rules for batteries and minerals. As a result, only about a dozen cars, mainly from U.S. manufacturers, are eligible for tax credits when purchased.

When purchased, you say? 🤔 The Inflation Reduction Act of 2022 has introduced a "leasing loophole." Essentially, leased EVs are categorized as commercial vehicles with different sourcing requirements. This means that practically any EV make or model can still benefit from the complete $7,500 tax break if leased rather than bought outright. However, here's the twist: the dealership technically bags the tax break, not the consumer.

Whoa, free money? 🤑 More like free incentives! EV manufacturers, particularly those from abroad, are passing on the savings to consumers through improved leasing terms. This strategy has already caused a surge in leasing numbers, with Hyundai and Kia reporting significant increases.

And you can too! 👍 Promoting customer leasing options could be a dealer's ticket to increase revenue in this period. Provide better terms to make EVs more affordable, driving up your customer base and market share, and return some used inventory acquisition that was lost when leasing lost it’s appeal.

Speaking of used Evs... 🔋 Pay attention to the used EV market. The Inflation Reduction Act has introduced a tax break for used electric and fuel-cell vehicles. So once the leases return, they qualify for a whole new round of tax-based incentives.

And nothing will ever change again?? 👩‍⚖️ Remember, the IRS is still refining the clean commercial vehicle credit details, so staying informed is crucial for maximizing this opportunity before it gets amended.

Telling it like it is - Sell Lease ‘em if ya got ‘em.

TOGETHER WITH MORE THAN CARS

Much, Much More.

Here comes the HYPE!

Are you ready to see car dealerships in a brand-new light? Join us for the premiere of “More Than Cars” on May 24 at 1 PM ET/12 PM CT.

Hosted by automotive troublemakers Paul J Daly and Kyle Mountsier, this groundbreaking series takes you on a behind-the-scenes tour of retail auto. From everyday customer interactions to the inspiring stories of the people keeping our wheels turning, it’s a fast-paced, artfully shot journey into the heart of the largest retail industry in the country.

“More Than Cars” shatters stereotypes, revealing that car dealerships are about much, much more than cars.

So, tune in for our mid-day viewing of the pilot episode, presented by ASOTU and brought to you by our friends at TrueCar, Inc.

AUTOMOTIVE

Motor Meals: Brexit Trade and Cooperation Agreement

Automakers, the UK government, and industry lobbyists alike are banning together against the EU to delay Brexit-related manufacturing requirements that many are citing as too hasty and unachievable.

Under a trade agreement made during the Great British Break-Off of 2020, 45% of the value of an electric vehicle being sold in the European Union must come from Britain or the EU by 2024 or risk hefty tariffs.

Though car companies are working hard to meet the new requirements, many argue that the rushed timeline is not achievable and are asking for a three-year extension (until 2027) to allow the development of the domestic battery supply chain in Europe and the UK to catch up with increasing demand.

A spokesperson from Stellantis said the rise in the cost of raw materials during the pandemic meant it was unable to meet the new “rules of origin.” It said the upcoming regulations could impart a 10% tariff on trade with the EU and make domestic production and exports uncompetitive. They also issued a warning (threat?) that manufacturers like themselves may choose to relocate rather than undercut their bottom line.

Ford and Jaguar have joined Stellantis in criticizing the trade agreement, calling it "unrealistic and counterproductive" for electric car manufacturing. They worry that the tightened trade rules could undermine the shift to EV adoption, particularly penalizing manufacturers who have heavily invested in the transition while ICE vehicles would remain tariff-free.

Telling it like it is - You’ve got to properly set up the field before you can start implementing the rules. Otherwise, no one is going to want to play with you.

TECHNOLOGY

Tech Talk: Google, AI, and Water Guns

Googbye Goodle. To mitigate possible security risks, Google will begin deleting accounts that have been inactive for two years. The deletion will thoroughly wipe out all vulnerable data on Gmail, YouTube, and Google Drive/Docs/Photos/Calendar. The policy will not affect business or school-associated accounts, just personal ones. To keep your account active, you need to log in. Even logging in through a third-party site or app will work.

We doubt most of us will notice this change. It will mostly remove the extra Gmail accounts grandparents create when they forget their Facebook password.

Battle Bots! (not that one). The ongoing conversation about the safe implementation of AI is... well... ongoing. Recently OpenAI's CEO Sam Altman met with Congress and suggested AI developers should be required to get a license from the government to release each model (including updates to existing models). While many can agree an unregulated AI industry could get nasty in a hurry, experts see this solution as a threat to competition in the market since these additional requirements may remove small companies from the conversation.

“Nasty in a Hurry” may be a great name for a Funk album, but it is a terrible plan for the future of robot-human relations.

Super-Soaker Redux. It's no secret that water guns are dope, and kids got no money, SO if making excellent water guns is your passion, you gotta make them for people who can afford them. Two companies, China's Mijia Pulse and a German startup called SpyraThree, are creating ultra-powerful electric water guns that fire like automatic weapons. Each shot delivers nearly a shot glass of water up to 50 feet away and takes just 10 seconds to reload. Before you ask, each costs under $200.

At least if AI does try to take over, we will have water guns to short-circuit them.

Quick Hits

• A Nigerian Chef, Hilda Bassey, is on track to break a world record after cooking for 100 hours non-stop. The previous record was almost 88 hours.👩🏾‍🍳

• Taco Bell is challenging the trademark for “Taco Tuesday,” which we thought already belonged to the people and were surprised to find out Taco John’s owns it. Wild. 🌮

• As if the talent pool wasn’t small enough in Hollywood (seriously, hire some new people), Tom Hanks says he could keep acting after death thanks to AI and Deepfakes. 🎥

• After enjoying a local singer’s gig in Glasgow, Post Malone helped him put a down payment on a house. 🏡 

History

• 1958: Maria Teresa de Filippis becomes the first female F1 driver. 🏎️

• 1980: Mount St. Helens erupts. 🌋

• 2005: A second photo from the Hubble Space Telescope confirms that Pluto has two additional moons, Nix and Hydra. 🪐