⚔️ January 23: NADA Challenges Sony Honda, Edmund Awards, and Tesla's Model Y Discounts

The Gist

🛑 Franchise Faceoff: NADA vows to fight Sony Honda’s direct EV sales plan, fueling the dealership vs. direct-sales debate.

🏆 Top Picks: Edmunds crowns its 2025 winners with Civic Hybrid, Grand Highlander, and Tesla Model 3 leading the pack.

✂️ Price Slash: Tesla’s Model Y drops below $40K ahead of its Juniper refresh, shaking up EV affordability.

BUSINESS

🛑 NADA Pushes Back

NADA isn’t pulling any punches. The National Automobile Dealers Association has vowed to challenge Sony Honda Mobility’s (SHM) decision to sell its Afeela EVs directly to consumers and bypassing the franchised dealership model.

At the recent CES 2025 Expo, SHM CEO Shugo Yamaguchi unveiled plans for the Afeela 1, the joint venture’s first EV. The company intends to manage all reservations and sales through its website, with initial deliveries slated for California in 2026 and a gradual nationwide rollout to follow.

EV Direct-Sales Trend

SHM isn’t the first automaker to sidestep traditional dealerships. Rivian, Lucid, and Tesla pioneered the direct-to-consumer model, but now legacy brands like Honda and VW are also trying to cut out dealers with their own EVs.

California dealers have already taken legal action against VW-backed Scout Motors, arguing that its direct-sales model violates state franchise laws. The California New Car Dealers Association (CNCDA) has issued a cease-and-desist letter to Scout, alleging it competes unfairly with VW franchisees.

NADA’s Stance

NADA President Mike Stanton minced no words following the SHM announcement:

“Honda should understand that any misguided attempt to bypass or undercut its U.S. dealers will be challenged in statehouses and courthouses across the country—with NADA’s full support.”

He emphasized the benefits of the franchise model, calling it “the most consumer-friendly and cost-effective way to sell and service new vehicles.” Stanton also expressed NADA’s willingness to meet with SHM leadership to discuss alternatives that avoid lengthy legal battles.

Tune in for Paul and Kyle’s take on yesterday’s episode of The Automotive Troublemaker.

🏆 Edmunds Top Rated Awards 2025

Every year, Edmunds rigorously tests over 300 vehicles to spotlight the best of the best, and the 2025 winners are ones to watch. These vehicles represent excellence in quality, value, and design, making them top contenders for buyer interest on your lot.

Here’s a breakdown of the 2025 Top Rated picks and why Edmunds says they won:

Best Overall: Honda Civic Hybrid

Why it won:
The Civic Hybrid delivers a perfect balance of practicality and performance, achieving an impressive 49 mpg in real-world testing. Available as a sedan or hatchback, it’s fun to drive, affordable, and features a well-crafted interior. Buyers looking for reliable efficiency with a touch of excitement will find everything they need here.

Top SUV: Toyota Grand Highlander

Why it won:
With a spacious, adult-friendly third row and an EPA-estimated 36 mpg for the hybrid model, the Grand Highlander excels in a competitive category. Toyota’s advanced driver aids and intuitive tech features seal the deal, making it a go-to option for families who need both space and efficiency.

Top Truck: Ford Ranger

Why it won:
Ford raised the bar for mid-size trucks with the new Ranger, offering a refined interior, intuitive physical controls, and modern driver aids. Its versatility makes it a great choice for both work and play, appealing to a wide range of truck buyers.

Top EV: Tesla Model 3

Why it won:
The Model 3’s recent updates brought extended range, a smoother ride, sharper handling, and a premium interior—all without raising the price. It remains one of the most affordable EVs, combining cutting-edge tech with everyday practicality.

Top EV SUV: Kia EV9

Why it won:
The EV9 balances affordability with premium features, offering ample space and a thoughtful design. As one of the most versatile three-row EVs on the market, it’s ideal for families who want to go electric without compromising on comfort or utility.

Top EV Truck: Rivian R1T

Why it won:
Rivian’s R1T received major updates for 2025, including new powertrains, expanded range, and additional trims. Its blend of sharp handling, brisk acceleration, and cutting-edge software makes it the ultimate choice for buyers seeking a premium electric truck experience.

✂️ Tesla’s Hefty Model Y Discounts

Tesla’s throwing out some serious deals on its Long Range AWD Model Y inventory, with some vehicles priced under $40,000 when paired with the $7,500 federal tax credit. The move comes as Tesla prepares for the upcoming U.S. release of the refreshed Model Y Juniper.

The Price Drop

Tesla is clearing out Long Range AWD Model Y inventory ahead of the updated Juniper model’s arrival, with some units are listed as low as $39,490. Leasing deals are also on the table, starting at $329 per month (slightly easier on the wallet than the usual $399).

Those numbers make the Model Y one of the most accessible all-wheel-drive electric SUVs on the market right now.

What Dealers Should Watch

1. Price Sensitivity: These discounts show how critical price points remain in the EV market. If Tesla can offer an AWD EV under $40K, it sets a benchmark that competitors—and their dealers—may need to address.

2. EV Incentives: The $7,500 federal tax credit is doing a lot of the heavy lifting here, but its future is uncertain. If similar incentives disappear, customers may shift their focus back to traditional vehicles or other EV options with better pricing structures.