Automakers get aggressive on incentives, used EV supply poised to skyrocket, LA Auto Show preview

Hey everyone. Each week, we deliver two concise, must-read recaps of the Car Dealership Guy Podcast — packed with the top 10 game-changing insights from each episode.

Join over 2K insiders already getting the industry’s expert takeaways straight to their inboxes by voting below 🔽

— CDG

EV depreciation is still eating Hertz alive:

Yesterday, the rental giant reported that monthly per-vehicle depreciation was $537 as of Q3 — 89% higher than a year ago — and more than double 2021 levels.

The primary reason?

Healthier new EV supply and incentives are pushing used EV values down.

But Hertz sees a light at the end of the tunnel...

As it offloads its (mostly Tesla) EV fleet for ridiculously low prices, depreciation losses will likely slow down significantly.

(Data source: Hertz)

Starting in 2026, the used car market is poised to see a flood of electric vehicles as lease returns on EVs surge.

J.D. Power notes that electric leases jumped 88% year-over-year, thanks to incentives that have made leasing an EV more appealing than sticking with gas.

Meanwhile, gas-powered leases are still below pre-pandemic levels, setting the stage for a shift in used inventory mix.

As more used EVs enter the market, the question of battery health and the future of incentives could play a big role in whether buyers embrace these electric options … (Go deeper: 3 min. read)

In Oct., automakers doubled down on incentives to clear inventory before year-end, pushing incentives to 7.7% of the average transaction price (ATP) for new vehicles—a 6% jump from Sept. and over 60% higher than last year, according to Cox Auto.

While overall prices have hovered around $48,500, specific segments like full-size pickups and EVs are showing slight pricing shifts, reflecting mixed demand as we head into the holiday season … (Go deeper: 4 min. read)

In today's automotive landscape, car buyers invest more time than ever in researching, considering, and comparing options. But for dealers, the challenge lies in pinpointing the audience ready to make a purchase.

Enter Premier by Edmunds.

Premier offers dealers a groundbreaking way to connect with in-market car shoppers precisely when, where, and how they prefer. With over 20 million monthly visits, Edmunds.com is the go-to destination for buyers seeking market insights, expert advice, and budget tools to make informed decisions.

Through Edmunds Premier, dealers gain access to this highly coveted audience. Simply list your new and used inventory on Edmunds, and watch as qualified, in-market traffic flows directly to your vehicle detail pages on your website.

Don't miss out on this opportunity to elevate your dealership's visibility and sales performance. You can sign up for Premier today at Edmunds.com/CDG.

The 2024 Los Angeles Auto Show is gearing up to showcase some of the biggest electric vehicle reveals of the year.

But the event doesn’t stop at car debuts—attendees can explore off-road adventures with “Camp Jeep” and join panels on digital retail and automotive design, giving a firsthand look at the industry’s shift toward EVs and tech innovation in one of the most EV-friendly markets in the U.S. … (Go deeper: 3 min. read)

Thanks for reading everyone.

— CDG