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Hey everyone,

CDG Recruiting is helping a client fill a Sales Manager role at Phil Long Honda of Glenwood Springs.

It’s a full-time role with strong benefits, earning potential in the $120K–$160K range, and a chance to lead in a high-opportunity market.

Interested or know someone who is? Throw a name in the hat.

— CDG

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Welcome to the Market Pulse—your no-fluff cheatsheet to auto retail, built to help dealers price right, stock smart, and stay ahead.

  • Used EV demand is rising: Sales jumped 32% YoY in May, but supply on dealership lots just hit its lowest level since June 2022.

  • Depreciation’s the wild card: EVs lose an average of 58% of their value after five years vs. 46% for gas cars. That’s squeezing resale value and trade-in margins.

  • Lease urgency is building fast: Leasing climbed from just 15% of EV deals in 2022 to 67% by March 2025 thanks to the IRA’s “leasing loophole.” That window closes Sept. 30. (More on this toward the end.)

(Source: iSeeCars / Cox Automotive)

Used EV demand is surging, but new EV supply is stacking up fast.

Used EV sales jumped 32% in May (36,609 units), helped by prices dropping 2.8% to $35,874, closing in on the $25K avg. used ICE vehicle, per Cox Automotive.

The issue: Supply’s drying up, and used EV days’ supply on dealership lots was down to 40 days.

Meanwhile, new EVs are sitting on 111 days’ supply. That’s dead weight if offers aren’t adjusted before incentives vanish or price cuts hit.

NOTE TO DEALERS:

Try to get ahead of OEM resets by pairing current incentives with urgency-driven offers you control.

Think loyalty cash, trade assists, or prepaid service perks that don’t burn gross but move aged units.

EVs are depreciating faster than non-EVs, and it’s reshaping resale strategy.

Here’s the problem…

The average 5-year depreciation rate for EVs is 58%, vs. 46% for gas-powered vehicles, per iSeeCars.

Some models like the Hyundai Kona EV and Kia Niro EV are holding up.

CDG analysis via Joe Cecala

But others (Tesla average / Nissan LEAF) are sinking fast, with 5-year residuals under 36%.

Why it matters: Most EVs lose the most value in year one, sometimes $4K+, which makes the first ownership cycle critical for managing trade-ins and protecting margins.

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Both the $7,500 new EV and $4,000 used EV federal subsidies are set to expire on Sept. 30, with no confirmed replacement in sight.

That has dealers moving fast, especially on new EV leases, which have been supercharged by the IRA’s so-called “leasing loophole.”

Here’s how it worked:

Because the bank (not the consumer) owned the leased vehicle, it could claim the full $7,500 commercial vehicle credit and pass that savings on. That helped push EV lease penetration from just 15% in 2022 to 67% by March 2025.

But that advantage ends in less than 90 days.

Adam Johnson, owner of Johnson Family Chevrolet in Virginia, flagged the abrupt cutoff as a logistical mess, especially for units already in transit.

“I have no problem with removing the incentives because it was going to happen at some point but the abruptness of it is going to have units in transit to be hard to move if they fall after that date.”

Adam Johnson

Johnson believes the change should’ve been tied to model year or build date—something dealers could actually plan around. But either way, his team’s already pivoting.

To get ahead of the cutoff, Johnson’s store is:

  • Marketing in-stock and inbound EVs with “credit ends Sept. 30” language

  • Pulling old EV leads to the top of the CRM for personal follow-up

  • And prioritizing trade conversations to create urgency while credits still apply

“After September 30, we are going to be waiting on the OEM for some guidance as to what they plan to do in the future before we adjust too much,” he said.

Let’s be real…

EV demand didn’t build itself. Subsidies did most of the heavy lifting, and soon we’ll see just how much.

That doesn’t mean EVs are dead. But it does mean the next 6 months (products, incentives, buyer urgency) won’t look anything like the last.

Bottom line: If I had to track one KPI right now, it’s EV days-to-turn. Godspeed.

Missed yesterday’s episode of Daily Dealer Live?

Presented by: Impel

Post Oak on luxury market volatility, DGDG on building dealer tech in-house

Featured guests:

  • Lonny Soza, President of Post Oak Motor Cars

  • Jeremy Beaver, CEO of Del Grande Dealer Group

Three opportunities hitting the CDG Job Board right now:

  • Hoffman Auto Group: CFO (Connecticut)

  • Pedder Hyundai of Poway: Sales Person (California)

  • Ray Catena Mercedes Benz of Union: Sales Person (New Jersey)

Looking to hire? It’s 100% free.

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— CDG

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