TOGETHER WITH
It’s NADA week, Friend!
We’re going to keep the show covered for our friends staying home this time, so be sure you’re connected with us on your platform of choice.
Send us your booth number, and we may pop in to say hi.
Keep Pushing Back
-Chris with Paul, Kyle & Kristi
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Smarter, Faster Financing: Powered by AI
At NADA 2026, see how Upstart Auto Finance uses thousands of data points (not just a credit score) to approve more buyers with faster, more flexible offers. Close more deals with instant, AI-powered decisions, longer terms, and higher LTVs that boost back-end profit without the lender runaround.
Visit them in Las Vegas, Feb 3-6 at booth #1901. The first 50 demos booked each get a $50 gift card, and everyone who stops by will be entered to win a super-automatic espresso machine for your showroom.
THE NEWS
Affordability Splits the Market, and China Fills the Gaps
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Inflation shows up around the car, not just on the car
The Associated Press reports producer prices rose 0.5 percent in December, faster than expected. The jump came from services, while goods prices, including autos, were flat month over month. Over the year, producer prices were up 3 percent.
What dealership teams feel from that mix:
Vehicles stop getting more expensive as fast
Financing, insurance, freight, and overhead keep creeping up
Customers stay payment-first because the “all-in” cost is still rising
New-vehicle demand keeps drifting upscale
CNBC, citing Cox Automotive, describes a buyer pool that is getting more affluent.
A few markers worth keeping in your pocket:
Average MSRP hit about $51,000 in 2025
Share of buyers under $100,000 income fell from 50 percent in 2020 to 37 percent
Share of buyers over $200,000 rose from 18 percent to 29 percent
One in five new-car buyers is now taking on $1,000-plus monthly payments
Sales remain historically solid, but the funnel narrows. More households lean on used, certified, and longer ownership cycles because the new-car doorway keeps moving further away.
China’s domestic price war pushes exports harder
Gasgoo’s year-end reporting on China shows the other side of the coin: huge volume, thin profit. December profit margin fell to 1.8 percent, with aggressive price cuts and overcapacity squeezing OEMs and suppliers.
Highlights from that picture:
“More cars, less profit” becomes the default
EV investment stays heavy, payback stays slow
Global expansion becomes less of a flex and more of a requirement
Europe is the proof point
Bloomberg via Auto News reports Chinese brands reached 9.5 percent share of Europe’s passenger car market in December, a record. Their gains are strongest in electrified vehicles, where price and battery competence win buyers who are watching their budgets.
More on this with Kyle and Michael here.
Product experience is resetting expectations
The Wall Street Journal’s Joanna Stern drove the Xiaomi SU7 Max and shared a theme: the software, range, and tech experience feel ahead of many Western competitors.
Even with U.S. barriers today, expectations travel freely. Customers see the reviews, then they walk into showrooms with a sharper sense of what “modern” should feel like.
How to use this today: Put a little more weight on used and certified. Keep the conversation simple: payment, insurance, and what it costs to live with the car. Stay tight with service follow-up, because people are keeping vehicles longer. And when customers bring up features they saw online, have a quick answer ready for what you’ve got that’s similar.
AROUND THE ASOTU-VERSE
Dealer Conferences and Industry Events (2026)
February 3-6: NADA Show 2026, Las Vegas, NV (Looking for a party?)
February 4, 12-1 pm: More Than Cars community meet-up at Booth 3635W.
May 12-15: ASOTU CON 2026, Hanover, MD
Quick Hits
🤖 AI: Videogame stocks slid after Google unveiled Project Genie 3, an AI turning prompts into interactive worlds, spurring disruption fears for developers and job security.
🇺🇸 Policy: Trump nominated Kevin Warsh for Fed chair; Warsh calls bitcoin a “policeman for policy,” useful market discipline, but not a dollar substitute.
👽 Weird: Super Bowl LX prop-bet fever goes off the rails, from Golden Gate vs. Alcatraz first shot to “Sweet Caroline,” streakers, and Seahawks 1-yard-line trauma.
Today in History: February 2
1653 – New Amsterdam (later renamed The City of New York) is incorporated.
1913 – Grand Central Terminal opens in New York City.
2004 – Dodge Ram SRT-10 sets speed record for production trucks
Thanks for reading, Friend! See you at NADA?
