Carvana gets called out, Mazda sticks to gas engines, Hertz offers renters EV deals

Go deeper: 5 min. read

January 04, 2025

Hey, everyone. Automakers are continuing to ramp up their consumer incentives, and there are a staggering *forty-seven* 0% financing offers up for grabs this month for both 2024 and 2025 models.

But qualifying for them is the real catch.

According to Edmunds, 0% finance deals dropped quarter-over-quarter to just 2.4% of all new financed vehicle purchases in Q4 2024.

Why? Only the most credit-worthy buyers qualify for these deals — something tough to accomplish for most consumers in today’s economy.

—CDG

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Welcome to The Weekly, your go-to roundup of the top five auto industry headlines of the week. Let’s dive in.

1. 2025 forecasted to be the strongest year for new car sales in half a decade — Cox Auto

2025 is shaping up to be the strongest year for new car sales in five years. Cox Automotive is forecasting a 2.6% growth for the industry, with new vehicle sales expected to hit 16.3 million. That’s up 3% from last year and the best we’ve seen since 2019.

What’s driving this optimism? 

Lower loan rates, better incentives, and more stable inventory levels are making cars a bit more affordable. Automakers are sweetening the deal, and there’s even talk of another interest rate cut by spring, which could give buyers more breathing room.

Used car sales are also climbing — projected to reach 20.1 million units, the highest since 2021. EVs are gaining ground, too, thanks to better charging infrastructure, though gas-powered cars will still dominate for now.

Of course, a few question marks remain — like potential tariff changes and the end of EV tax credits — but for now, the road ahead looks pretty bright.

Especially for one brand in particular…

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2. Mazda sticks to gas engines — fueling record-breaking sales

Mazda is on track for a record-breaking 2024, with over 420,000 vehicles expected to sell — up 16% from last year. For 2025, they’re aiming even higher, targeting 450,000 sales.

Their secret? 

Sticking with gas-powered vehicles. While others are racing to electrify, Mazda is focusing on what’s working now. Demand for their compact crossovers and mid-size SUVs is driving this surge, with EVs making up just 10% of their lineup — and no plans to change that anytime soon.

With federal EV tax credits facing uncertainty and ongoing concerns about charging infrastructure and costs, gas-powered vehicles are expected to remain a reliable choice for many buyers. 

This demand could position Mazda to exceed its ambitious 2025 sales targets.

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3. Hertz offers renters EV deals to offload depreciating inventory

Hertz has a new pitch for EV renters: if you like it, why not buy it?

The rental company is leaning into selling electric vehicles directly to customers, offering models like Teslas, Polestars, and Chevy Bolts at low prices. 

Driving the news: One renter posted on Reddit that they were offered a 2023 Tesla Model 3 for just $17,913 — despite the car having only 30,000 miles. Another listing showed a 2022 Model 3 with over 136,000 miles priced at $19,736.

Hertz is also sweetening the deal with a limited 12-month, 12,000-mile warranty and even lets you return the car within seven days or 250 miles if you have second thoughts.

Big picture: The company is facing steep losses from EV depreciation — nearly $1 billion last quarter alone. And selling these cars cheaply to renters is their way of clearing inventory fast — especially with federal EV tax credits possibly disappearing next year.

Speaking of used car retailers — Carvana has come under fire yet again…

4. Carvana accused of shady practices in Hindenburg report

Carvana is facing a scathing report from short-seller Hindenburg Research, which calls the online retailer’s post-pandemic recovery a “mirage.” 

The report accuses Carvana of shady lending practices, including selling risky subprime loans and allegedly boosting profits through financial manipulation.

Hindenburg even claims Carvana sold $800 million in loans to a “suspected undisclosed related party” and says about 26% of its gross profit since last April came from similar deals.

Carvana fired back, calling the report “intentionally misleading” and accusing Hindenburg of trying to profit by shorting its stock. Analysts from JP Morgan backed Carvana on some points but criticized its lack of financial transparency.

This isn’t the first time Carvana has faced scrutiny. The company’s high gross profit per retail unit has long raised eyebrows, and Hindenburg says it’s inflated by less-than-savory accounting.

Have a tip for our editorial team? Send us your scoop at [email protected].

As Carvana navigates accusations over its lending practices, the broader industry faces another challenge — understanding the next wave of car buyers…

5. What matters most to Gen Z car buyers (it’s not just price)

A new report from Urban Science reveals that 68% of this tech-savvy generation still values car ownership — debunking the myth that they don’t care about driving.

What’s interesting is how their preferences differ.

By the numbers: 

  • Over half of Gen Z buyers are considering electric or hybrid vehicles, with 63% leaning toward hybrids. 

  • And while 38% are comfortable buying a car online, nearly half still see dealerships as essential, with 43% saying they wouldn’t purchase without one — a notable jump from last year.

  • Incentives matter more to them, too, with 42% swayed by discounts.

But closing the deal with Gen Z is no cakewalk. They prioritize a seamless, tech-driven buying experience over just getting the lowest price. 

With 6.4 million Gen Zers planning to buy or lease a car next year, dealerships that adapt now will secure this growing and influential market segment.

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That’s a wrap for now – make sure you’re following along on X, LinkedIn and IG for more real-time updates.

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—CDG

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