Carvana targeted in new report, 2025 auto retailing trends, car ownership costs expected to ease

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Hey everyone. I'll be speaking hosting an exclusive panel discussion featuring some of the industry’s most influential leaders from top-performing dealerships and OEM on January 9!

Broadcast live from Washington, D.C., this event will address the most pressing challenges and emerging trends shaping automotive retail today.'

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— CDG

Auto crimes are finally declining:

Despite remaining 60% above pre-pandemic levels, carjackings in the first half of 2024 saw a significant 26% decline compared to 2023.

And thefts?

Also down 21% year-over-year.

A promising trend that could (hopefully) pave the way for lower insurance premiums.

(Data source: Council on Criminal Justice)

1. Carvana accused of shady practices in Hindenburg report

Carvana’s post-pandemic comeback is under scrutiny after a scathing report from Hindenburg Research labeled the auto retailer’s recovery a “mirage.”

• The short seller alleges Carvana boosted its income by selling off risky subprime loans, including an $800 million transaction with a “suspected undisclosed related party.”

• Hindenburg also claims Carvana’s financial practices — such as accounting manipulation and loan extensions through its affiliated servicer DriveTime — inflate profitability and suppress delinquencies.

Big picture: While Carvana dismissed the allegations as “intentionally misleading,” analysts have raised concerns about the company’s lack of financial disclosures … (Go deeper: 4 min. read)

2. 2025 forecasted to be the strongest year for new car sales in half a decade — Cox Auto

New vehicle sales are expected to hit 16.3 million units — the highest volume in five years— while used retail sales climb to 20.1 million.

Why? Lower loan rates, growing incentives, and stabilizing job markets are set to make vehicles more accessible, boosting buyer satisfaction.

• Electric vehicles will also gain traction, with ICE vehicles dropping to 75% of total sales as charging infrastructure improves.

• However, challenges like the loss of EV tax credits and potential tariff impacts could create uncertainty.

All eyes are on the spring, when a possible interest rate cut could give the market an added boost … (Go deeper: 3 min. read)

Don’t wait for March or April to boost your tax season sales. 

With the Tax Max “file and drive” sales event Tax Max can help a customer access their tax refund same day for a down payment starting January 2!

No need to wait for the IRS. The same day tax refund advance, allows a Tax Max customer to apply for up to $7,000 on the same day they file to use toward their down payment.

No additional work from staff as the entire tax filing process can be completed online and from your customer’s phone.

Tax Max prepares the return, refund sent to dealer for a down payment and the customer gets the car. It’s that simple with Tax Max.

3. Elevated car ownership costs are forcing drivers to rethink every mile

Insurance premiums have surged 50% in just three years, repair costs are up 41% since 2022, and while used car prices have dipped, they’re still 30% higher than pre-pandemic levels.

Faced with rising costs, drivers are cutting back — raising deductibles, reducing coverage, and delaying purchases.

Yet — Jerry’s State of the American Driver report offers some hope for 2025, predicting slower insurance rate hikes, falling used car prices, and possible interest rate cuts on the horizon.

But even with these improvements, the question is: how much longer can Americans “adapt” before their buying habits change permanently? … (Go deeper: 3 min. read)

• Sales at SAIC-GM skid 23% in 2024 despite strong demand for electrified models.

• Tesla annual deliveries fall for first time as incentives fail to drum up demand.

• Chrysler rescue of 80,000 jobs almost didn’t happen.

• Hyundai, Kia, Genesis EVs now qualify for the $7,500 U.S. tax credit for the first time.

• Prepare for an electric car price war In 2025.

Thanks for reading everyone.

— CDG