Toyota profits drop, a closer look at EV depreciation trends, why buying a car was tougher in Oct.

Hey everyone. Well — it’s over. We have a new president, whether you like it or not. But I’m curious…

— CDG

Used car inventory <$15K just hit its lowest point in 3.5 years:

One reason?

New car prices and interest rates are still inflated — and people are holding onto their vehicles longer than ever instead of trading them in.

It's a vicious cycle — and one that will likely continue until MSRPs decline in meaningful ways.

(Data source: Cox Auto)

1. What's really going on with EV depreciation?

Used EV prices continue their downward trend, erasing all pre-pandemic gains and dropping around 42% since their peak in 2022.

This steep decline highlights how Tesla’s pricing tactics, the dominance of premium models, and the $25,000 federal tax credit limit are shaping the market.

While leasing interest is rising as prices fall, outright sales remain modest — used EVs account for just 1.7% of pre-owned transactions.

But as values approach that key $25,000 mark, a new wave of demand could emerge, especially if prices align closer to traditional gas vehicles … (Go deeper: 4 min. read)

2. Toyota marks first profit drop since 2022

Toyota's latest earnings report reveals a 20% drop in operating profit — its first decline in nearly two years — as recalls, safety scandals, and a probe by Japanese authorities weigh on the brand’s reputation.

But Toyota’s not alone — Honda, BMW, and others are also grappling with rising costs and tougher competition.

As profits shrink, automakers are rethinking their playbooks. Toyota’s cutting back on incentives, while Stellantis and Volkswagen focus on price tweaks and cost cuts … (Go deeper: 4 min. read)

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3. Buying a car was slightly tougher for consumers last month

Even with plenty of cars on the lot, CDK Global’s recent Ease of Purchase study highlights the small but noticeable disruptions facing car buyers — like fewer test drives and limited stock of specific models.

Only 49% of buyers found their exact model in stock last month (down from 54% in Sept.), and test drives were harder to arrange, with just 78% saying it was easy, a rare drop below 80%.

These aren’t huge shifts, but they reflect how subtle issues like stop-sales, model turnover, and unpredictable events are creating a more complex buying experience than expected … (Go deeper: 2 min. read)

• Longtime UAW ally Sen. Sherrod Brown ousted in Ohio by former car dealer Bernie Moreno.

• How officials are setting new charging stations to drive Michigan's EV future.

• EV maker Rivian may report first quarterly revenue drop since IPO.

• Ford dealership sends Facebook sleuths after buyer who paid with fake check.

• Independent auto repair shops still top dealerships for customer satisfaction.

Thanks for reading everyone.

— CDG