EV funding in flux, new car prices dip, F&I profit drivers gaining steam

Hey everyone. I have a big podcast that just dropped this morning covering one of the most crucial areas of dealership operations: the wholesale market. Find out why the current wholesale landscape is ripe for disruption by listening to my conversation with auction visionary, Shiv Dutt, senior vice president of OPENLANE.

— CDG

1. Easy come easy go: Detroit 3 gain and lose millions in EV investments

The Detroit 3 and government authorities remain split on whether to ramp up or scale down electric vehicle investments. Ford and Michigan have canceled millions in public funding while Stellantis and GM receive massive subsidies.

Why this matters: The auto industry seems to consistently flip between a glass half-full or glass half-empty perspective when it comes to the EV market and investments … Read more

Become an automotive insider in just 5 minutes.

Get the weekly email that delivers transparent insights into the car market.

Join 70,000 others now, it's free:

2. New car prices continue downward trajectory in June

For 9 consecutive months, new car prices have been declining. In June,  the average transaction price (ATP) for a new vehicle in the U.S. was $48,644 – $266 less than in May and $307 lower than a year ago.

The intrigue: Even though the average new car in the U.S. costs around $49,000, 66% of vehicles sold for much less last month … Read more

Billions of dollars in the auto industry vanish each year thanks to a booming crime:

Synthetic identity fraud.

According to the Federal Reserve, it’s the fastest-growing financial crime in the U.S. Here’s how it works: fraudsters cook up fake identities, build credit profiles using real and fake information, and then finance a vehicle with zero plans to pay. A few months of payments keep them under the radar, but soon, they're gone with the vehicle, leaving dealers and lenders holding the bag.

Don't be fooled by outdated fraud protection. The crooks are getting smarter, their schemes more high-tech. Experian Automotive can help you outsmart them, predict and prevent fraud before it strikes, and save your bottom line.

3. Auto insurance market exiting slump as dealers drive F&I profit

According to the latest Polly Auto Insurance Report, the car insurance market has now improved for two quarters…

Why this matters: Even though back-end profit continues to outpace other income sources in the dealership, there are still plenty of opportunities to drive front-end revenue, including through F&I ... Read more

• Volkswagen and QuantumScape strike a deal on solid-state batteries.

• Audi has struck a multiyear partnership with Inter Miami CF as the team's official automotive partner.

• Tesla starts pushing new Supervised Full Self-Driving update.

• Electrify America caps EV charge times.

• Connected cars are supposed to generate lots of revenue. So far, they have not.

Thanks for reading everyone.

— CDG