TOGETHER WITH:
Howdy, Fam!
My family recently bought a new car (full transparency, it’s a Subaru but I'm not playing favorites).
Most of the decision happened at home, with a few evenings of Google searches that narrowed down what we wanted and who we wanted to buy from.
By the time we walked in, we just needed an expert to help the numbers make sense. In my experience, the opposite of shopper's anxiety is clarity.
In that spirit, give shoppers something clear to find when they search your name.
(MPG may be a big one these days. Just saying.)
Also in today's email...
The final fuel economy rules are out, and the 2031 target landed a little higher than proposed
Three stories that show why retail auto has no ceiling
A busy buy-sell market and Cox's theory on why consumers keep spending
Quick hits on Boston's EV charger lawsuit, Starship reaching orbit, and a truck driver's two-decade side project
Keep Pushing Back,
—Chris with Paul, Kyle & Kristi
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The Fuel Economy Rules Are Final
The Transportation Department on Monday finalized lower fuel economy standards, setting a fleetwide average of 34.9 mpg by 2031, down from 50.4 mpg under the Biden-era rules. That's a touch above the 34.5 mpg the administration proposed in December.
Here's what the department estimates the rule will do:
Compliance costs drop by $1,289 per vehicle on average
Fuel costs rise by more than $1,600 over each vehicle's life
Gasoline consumption climbs 4.6% through 2050 compared with the prior rules
New-vehicle sales get a boost
The rule also ends credit trading among automakers in 2028, which had been a significant source of income for EV makers like Tesla and Rivian.
The Alliance for Automotive Innovation, which represents most major automakers, said the government "made the right call." The Sierra Club said it will fight the rollback. Environmental groups also pointed out that the fleetwide average already hit 35.4 mpg in 2024.
What changes for the vehicles on your lot?
Weaker standards give automakers more room to build pickups and SUVs, which carry bigger margins than smaller cars, though GM says it still plans to keep making EVs. All of this lands with gas at $4.49 a gallon, 43% higher than a year ago.
Customers will feel this rule in two places: which models fill your lot, and what it costs to fill their tanks.
Buyback the Right Vehicles Without Overpaying For Them
AutoHub's Acquisition Engine pulls real-time KBB and MMR market data into every appraisal, then layers on your own pricing rules and deduction criteria so offers reflect what's actually happening in the market - not last month's guesswork.
Want to bid aggressively on the trims moving fastest on your lot? Dial back on the inventory sitting idle? Dealers set the strategy; the Acquisition Engine executes it automatically across in-store, service lane, and online offers - protecting margin while staying competitive on the vehicles that matter most.
Three Stories That Show Why Retail Auto Has No Ceiling
Yesterday, we revisited some friends’ stories from The Truth About Car Dealers.
Amariye was living in his car and driving for DoorDash when a late-night delivery to a dealership led to a job offer. By his second month, he was selling around 32 cars.
At Audi Grapevine, Riley made roughly 100 calls a day. Some days that meant one or two interested customers. Other days it meant 10 appointments. Her rule for both: "You can't let one day get you down."
Who in your store has a story like this?
At Classic Chevrolet, Logan works against the stereotype that dealership staff might joyride a customer's car. "I know you have like $150,000 Corvette, but we're going to take care of it."
Someone on your team has a floor-less story. Ask them to tell it, and then go find the next person who needs the same open door.
Dealership buy-sell activity stayed strong in Q2
Automotive News tracked 92 transactions, fewer deals than a year earlier but involving more stores. Stellantis-brand stores changed hands most often, as buyers position for the brands' turnaround, and all five of the most active buyers rank among the top 150 dealer groups, including AutoNation and Group 1.
One adviser warned the Fed's Sept. 16 rate hike could slow deals started in Q4.
The consumer keeps showing up, and Cox thinks it knows why.
Since 2021, personal income has grown 5.7% a year while expenses grew 6.3%, and the savings rate fell from 6.8% to 3%. Yet spending holds.
Cox Chief Economist Jeremy Robb points to liquid financial assets, which have compounded 11.3% a year for seven years, nearly triple inflation's 3.9%.
The top 10% of households now hold 82% of those assets, up from about 75% before the pandemic.
Boston sued the Transportation Department after a $20 million streets grant was pulled over planned EV chargers, which made up less than 1% of the project's cost. ⚡
SpaceX's Starship reached orbit for the first time Monday, deploying 26 new Starlink satellites despite losing an engine on the way up. It happened exactly 18 years after SpaceX's Falcon 1 first reached orbit. 🚀
A truck driver spent two decades building a scale model of New York City in his free time, a tribute to his hometown one tiny block at a time. 🗽
1916: John D. Rockefeller is widely reported as America's first billionaire.
1966: The Chevrolet Camaro goes on sale for the 1967 model year, Chevy's answer to the Ford Mustang.
1988: Space Shuttle Discovery launches, returning NASA to crewed spaceflight after a nearly three-year pause.
Thanks for reading, Friend! ASOTU CON West is coming! You ready?
