New federal EV tax credit eligibility, Scout Motors' confident outlook, Ram debuts revamped heavy-duty trucks

Hey, everyone. Really pumped about the next episode of the Car Dealership Guy Podcast.

Why?

We’ve never had a guest like this before.

On Tuesday — a certified master technician takes us on a deep dive throughout his unique career.

Tune in by following the CDG Podcast on Youtube, Spotify, or Apple.

— 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. Tight supply locks in elevated prices for used cars

More car buyers are heading to used car lots as affordability challenges push new vehicles out of reach for many. As a result — Cox Automotive projects retail sales will climb to 20.1 million in 2025 — the highest level since 2021. 

But inventory? Still tight.

A big reason for the supply crunch is due to the pandemic’s production slowdowns which dried up leases, and now that’s hitting the used car pipeline hard.

• Lease maturities dropped 18% in the fourth quarter of 2024 and are expected to fall another 17% next year. 

• Meaning — fewer 1- to 3-year-old vehicles (key to wholesale inventory) will be available in 2025.

And with supply limited, used car prices remain elevated but have stabilized. For 1- to 5-year-old vehicles, the average price has hovered around $30,000 since June — down just 3% year-over-year.

With demand staying steady and prices holding firm, 2025 could finally bring some stability to a market that’s been anything but predictable.

(Go deeper: 2 min. read)

But for car buyers looking for something brand new — EVs have some of the strongest incentives out there., despite…

2. Some EV models losing tax credit eligibility under stricter rules

The stricter requirements focus on where battery materials are sourced, part of a broader effort to reduce reliance on China. 

• That means some popular models, like the Volkswagen ID.4 are no longer eligible for the $7,500 credit. 

• Meanwhile, new entrants, like the Cadillac Optiq, Hyundai Ioniq 5, and Tesla Cybertruck, have made the cut.

The loophole: While the requirements apply to outright purchases, leases follow more lenient guidelines — meaning more vehicles qualify which has been vital for car buyers.

Big picture: Automakers are now scrambling to meet the tougher standards by building U.S.-based battery facilities and reshaping supply networks. At the same time — buyers are facing a more limited pool of eligible vehicles.

Looking ahead: But as automakers retool, we'll likely see more vehicles qualify in the future. 

That is unless President-elect Trump follows through on his plans to rollback the tax credits entirely.

(See the full list of eligible vehicles: 2 min. read)

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3. Sony-Honda's Afeela 1 EV to be sold without traditional dealers

Unveiled at CES 2025 — the Afeela 1 is Sony and Honda’s answer to the luxury EV market, combining sleek design with AI-powered features and advanced chip technology.

• The midsize sedan will be built at Honda’s Ohio factory, with reservations open now for California buyers. 

• For buyers — prices will start at $89,000 for the base Origin trim and climb to $102,900 for the Signature model. 

The catch is — Sony Honda Mobility is opting for direct online sales, allowing customers to reserve and purchase the car through their website. This approach follows the likes of Tesla and Rivian — but it faces pushback from retailers who argue it violates state franchise laws.

Bottom line: While the automakers claim cutting out dealerships would simplify the buying process — it also adds risks in a market already crowded with pricey EVs.

(Go deeper: 4 min. read)

Speaking of the direct-to-consumer sales model…

4. VW's Scout receives 50K reservations, gears up for dealer lawsuits

The recently revived brand from Volkswagen has gained over 50,000 refundable reservations for its electric SUVs and pickups – the Scout Traveler and Terra. 

Set to debut in 2027, the vehicles will start under $60,000 and will be available as all-electric or extended-range electric vehicles (basically plug-in hybrids that pair electric motors and batteries with a small gas-powered engine).

• And like Sony Honda Mobility — Scout plans to sell directly to consumers, bypassing traditional dealerships with a direct-to-consumer sales model. 

• Of course — it has sparked backlash from Volkswagen’s U.S. dealers, who argue that Scout competes directly with their own offerings.

As a result — state and national dealer associations are already threatening legal action.

But Scout argues it operates independently from Volkswagen and is “highly confident” it will prevail in court — should it come to that.

(Go deeper: 4 min. read)

But it’s not all about EVs…

5. Redesigned Ram heavy-duty trucks to hit dealer lots in Q1

Ram is trying to regain its footing in the ultra-competitive truck market with the launch of its redesigned 2500 and 3500 pickups.

Set to arrive in early 2025, these heavy-duty trucks come with updated styling and serious power. 

• Buyers can opt for a new 6.7-liter turbo diesel engine pushing 430 horsepower and a jaw-dropping 1,075 foot-pounds of torque, or a 6.4-liter Hemi V-8 with 405 horsepower. 

• Prices start at $47,560 — about $2,300 more than the current models.

Why it matters: For Ram, this refresh couldn’t come at a better time. Sales dropped 16% last year, hurt by delays with the Ram 1500. But returning CEO Tim Kuniskis is betting big on these trucks to win back customers.

But Ford and Chevy are still dominating the segment. Whether Ram can claw back market share may come down to more than just horsepower.

(Go deeper: 2 min. read)

Three opportunities hitting the CDG Job Board right now:

• CarNow: Regional Sales Managers (remote).

• Foureyes: Customer Success Manager (remote).

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• Rising incentives fueled a strong year for U.S. auto sales in 2024.

• Monthly new car payments hit new peak in Q4, lower interest rates offer some relief.

• Hyundai CEO optimistic about Trump-Musk relationship.

• Dec. wholesale used car prices signal end to volatile depreciation swings.

• Automakers show off stylish tech at CES as industry preps for change.

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

Thanks for reading. Hit reply and let me know if you found this week-in-review valuable or have any feedback. I’ll see you next weekend.

— CDG

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