TOGETHER WITH:
Howdy, Fam!
Complexity costs somebody something.
It’s gonna cost your shoppers a lot of time spent on weird internet research.
Or it’s gonna cost your team time to make sense of things.
Otherwise, it’s gonna cost you the relationship when somebody else makes it simpler.
So today we're making a little sense of the numbers customers are seeing and the moves automakers are making.
Keep Pushing Back,
—Chris with Paul, Kyle & Kristi
Reading time: 4 mins
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The Cost Of Complexity
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Over the weekend, we saw three pieces circling the same challenge: complexity.
Not complexity inside the dealership.
Complexity inside the ownership experience itself.
According to Cox Automotive, the average used vehicle listing price reached $26,918 in May, the highest level since mid-2023. Meanwhile, an Insurify study found EV insurance costs averaging 42% higher than gas vehicles. At the same time, Toyota continues gaining market share while maintaining some of the industry's leanest inventory levels.
Different stories.
Similar theme.
The modern vehicle is becoming more expensive to understand.
The Ownership Equation Keeps Growing
The EV insurance headline grabbed attention, but the most interesting finding sat further down in the report.
When researchers compared newer model-year vehicles, the insurance gap narrowed significantly.
That raises a different question.
Are customers paying more because a vehicle is electric?
Or because nearly every modern vehicle now includes expensive technology, sensors, cameras, safety systems, and calibration requirements that make repairs more complicated?
Meanwhile, used vehicle prices continue climbing, particularly in affordable segments where inventory remains tight.
Taken together, shoppers are evaluating far more than monthly payment:
Insurance costs
Repair costs
Technology costs
Financing costs
Depreciation concerns
The vehicle may be the same purchase.
The ownership equation keeps getting longer.
As ownership decisions become more complicated, shoppers often gravitate toward brands that feel easier to predict.
Why Toyota Keeps Showing Up
Toyota's latest performance may offer a clue about how customers are responding.
The company captured nearly 20% of shopper demand in May despite transaction prices remaining elevated across the industry.
CarGurus' Kevin Roberts pointed to Toyota's ability to consistently align production with consumer demand. In other words, discipline.
That discipline creates something valuable in a complicated market: predictability.
Customers may not know inventory turn rates.
They may not care about days' supply.
But they recognize consistency when they see it.
Where The Rubber Meets The Road
One of the more interesting ideas from ASOTU CON came from Frank Ziede's session, The Hidden Skill Behind Higher Closing Ratios.
His argument wasn't about objection handling or negotiation tactics.
It was about the first five minutes.
Ziede challenged dealers to spend less time analyzing how deals end and more time understanding how relationships begin. Trust, he argued, is often established before numbers ever hit the desk.
That feels especially relevant right now.
As vehicle ownership becomes more complicated, customers don't necessarily need more information. Most already have access to endless information.
What they need is help making sense of it.
The stores creating confidence around ownership, affordability, technology, and long-term value are doing more than selling vehicles.
They're reducing complexity.
And in today's market, that may be one of the most valuable services a dealership can provide.
Are Your VDPs Earning the Click?
In a market where shoppers are stretching every dollar, your listings need to answer every question before it’s asked.
93% of car buyers use auto marketplaces in their path to purchase — and when budgets are tight, a complete listing is often what separates a click from a pass. How you merchandise your vehicles influences every stage, from AI-powered search to the moment they pick up the phone.
Our merchandising guide gives you the tactics to make every VDP work harder and turn more views into qualified leads.
🧨 Global Pinball
U.S., Iran Reach Deal
The U.S. and Iran agreed to stop fighting and reopen shipping through the Strait of Hormuz.
Japanese Automakers Face $40B Hit
Automotive News says tariffs, EV shifts, and emissions changes could cost Japanese automakers over $40B by 2027.
Europe Wants “Made in Europe” Rules
Volkswagen, Stellantis, and Renault want 70% of EU-sold vehicles to source 70% of value locally.
🪩 Future Stuff
Solid-State Batteries Hit the Road
Stellantis and Factorial began real-world North American tests of solid-state batteries in a Dodge Charger Daytona.
Deepfake Expert Doubts His Eyes
The world’s leading deepfake expert says AI has made even his own visual judgment harder to trust.
🚀 Big Swings
SpaceX IPO Makes History
SpaceX shares surged in their debut, pushing the company above Tesla’s valuation and Musk into trillionaire territory.
Hyundai Chases Ford
Hyundai and Kia reached 11.8% U.S. market share, powered by surging hybrid sales.
Chicago Runner Finishes Every Street
A graduate student completed his mission to run every single street in Chicago.
1667 - French physician Jean-Baptiste Denis performs the first blood transfusion on a feverish boy—using lamb's blood. The boy recovers, but two other patients die from the procedure, leading to centuries-long bans on transfusions.
1844 - Charles Goodyear received a patent for the process of rubber vulcanization, which made rubber durable for commercial use.
1911 - The electric starter—which was invented by Charles Kettering and first implemented in 1912 Cadillac models—was officially patented on June 15. This innovation completely transformed the industry by eliminating the dangerous hand-crank.
Thanks for reading, Friend! Happy Monday. Say it with me:
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