Carvana’s record-breaking Q4, new automotive ad platforms on TikTok, personal politics shape EV perception

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Hey everyone. Aggressive sales tactics cost long-term customers:

Brett Sutherlin saw it happening first hand at his own dealerships—

So—he built a system to fix it.

On this episode of the CDG Podcast, Brett, dealer principal of Sutherlin Automotive, discusses how he turned frustrating service experiences into a sales growth engine, the tech he built to power it, and why he walked away from Nissan at the right time.

Stream it now on YouTube, Spotify, or Apple.

— CDG

Dealership floorplan interest expenses are surging:

In Q4—across 6 huge public dealership groups—floorplan expenses (the cost for dealers to finance unsold inventory) massively increased year-over-year:

Asbury Automotive: +189% ($23.7M)
AutoNation:: +18.5% ($55.1M)
Group 1 Automotive: +66.4% ($32.2M)
Lithia Motors: +34.2% ($64.8M)
Penske Automotive: +42.6% ($189.8M)
Sonic Automotive: +16.3% ($21.4M)

The reason—inventory is 17% higher than a year ago.

Bottom line?

More cars to finance = more interest to pay—and it's not getting cheaper anytime soon.

(Data source: Retailer earnings via Auto Finance News / CarGurus)

Carvana just delivered a knockout fourth quarter, exceeding Wall Street estimates with 56 cents per share—nearly double expectations.

By the numbers: Revenue soared 46% to $3.55 billion, while full-year sales jumped 27% to $13.67 billion. The company also moved 416,348 retail vehicles in 2024, a 33% increase, flipping last year’s $200 million loss into a $159 million profit.

But not everything is trending up—revenue per car dropped by $1,000, and wholesale profits lagged, sending shares down 10% after hours on Wednesday.

Still, with the stock up 40% this year and just 1% market share—Carvana sees plenty of room to grow … (Go deeper: 2 min. read)

The social media platform just launched TikTok Automotive Ads, a program aimed at helping automakers, dealers, and marketplaces reach car buyers more effectively.

With Inventory Ads promoting specific VINs and Model Ads showcasing different trims and offers, early results are promising—driving a 41% lower cost per acquisition and 51% lower last-click cost per purchase compared to other TikTok shopping formats.

But there’s a catch: TikTok’s parent company, ByteDance, is under pressure to sell, with investors like Kevin O’Leary and MrBeast eyeing a stake. However, if TikTok stays in the U.S., its influence on car buying will likely continue accelerating at a fast clip … (Go deeper: 3 min. read)

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A new consumer survey from the EV Politics Project found Democrats are buying EVs at five times the rate of Republicans, with 34% of GOP voters saying they’ll never consider one.

Meanwhile—Tesla’s favorability among Democrats has plunged as Elon Musk leans into MAGA politics—yet conservatives haven’t rushed to buy Teslas either. Ford and GM, on the other hand, are staying politically neutral, a strategy that may prove more sustainable.

Bottom line: If EVs remain a political flashpoint rather than a market-driven innovation, the segment risks stagnating within a partisan bubble … (Go deeper: 3 min. read)

Thanks for reading everyone.

— CDG