EV Sales Growth Slows; Market Leader Tesla Stalls

Electric vehicle (EV) sales growth in the U.S. continues to slow, according to sales data analyzed by Kelley Blue Book. In the first quarter of 2024, Americans bought 268,909 new electric vehicles, according to Kelley Blue Book counts. EV share of total new-vehicle sales in Q1 was 7.3%, a decrease from Q4 2023.

While annual EV sales continue to grow in the U.S. market, the growth rate has slowed notably. Sales in Q1 rose 2.6% year over year, but fell 15.2% compared to Q4 2023. The increase last quarter was well below the previous two years.

In Q1 2023, EV sales volumes were up 46.4% year over year and 15.5% quarter over quarter. In Q1 2022, EV sales were higher by 81.2% year over year and 20.4% higher than the previous quarter.

“Electric vehicle sales in the U.S. declined during Q1 2024 – the first quarter-over-quarter downturn since Q2 2020,” said Stephanie Valdez Streaty, director of Industry Insights at Cox Automotive.

“As anticipated, Tesla’s sales took a hit, influencing the overall market dynamics. However, a few brands saw significant EV sales increases, achieving over 50% year-over-year growth. As noted in January, we are calling 2024, ‘the Year of More’. More new products, more incentives, more inventory, more leasing and more infrastructure will drive EV sales higher this year. Even so, we’ll continue to see ups and downs as the industry moves towards electrification.”

Analysts at Cox Automotive had expected a slowdown in EV sales growth. Segment growth typically slows as volume increases. This is certainly true with the market leader Tesla, which reported notably lower global deliveries in Q1 2024.

According to Kelley Blue Book estimates, Tesla sales in the U.S. were down 13.3% year over year – well below the typical double-digit growth that had become routine with the Tesla brand. Tesla’s share of the electric vehicle market in Q1 2024 was 51.3%, down from 61.7% one year earlier.

Though the overall year-over-year growth was minimal in Q1, nine manufacturers recorded more than 50% year-over-year growth in EV sales – BMW, Cadillac, Ford, Hyundai, Kia, Lexus, Mercedes, Rivian and Vinfast.

Q1 2024 EV SHARE OF TOTAL BRAND SALES
Go to coxautoinc.com (Q1-2024-EV-share-to-brand-sales-revised-chart subpage)

Notably, lower prices have supported EV sales volume in the U.S., particularly for key Tesla models. The average transaction price for a new EV in Q1 was $55,167, a 9.0% decrease compared to Q1 2023 and down 3.8% quarter over quarter. Tesla’s average transaction price was $52,315 in Q1, down roughly 13.5% year over year. However, lower prices did not generate higher volume.

Many automakers have followed Tesla’s lead and slashed prices. Incentive spending on EVs has increased notably in the past year, another sign of slowing demand. Leasing, too, has increased. In Q1, roughly 27% of all EVs were leased, more than double from the year before. With leasing, many buyers can qualify for the full $7,500 incentive the Inflation Reduction Act offers.

One bright spot in Q1: Strong EV sales from luxury makers, suggesting the EV market continues to be luxury-driven. Cadillac achieved a 499.2% year-over-year increase in electric vehicle sales due to robust sales of its Lyriq model. At Mercedes, EV sales were up 66.9%. BMW posted a 62.6% increase in EV sales compared to Q1 2023. At Audi, Q1 EV sales grew 28.8% year over year.

Meanwhile, sales of the most affordable EV in the U.S. – the Chevy Bolt – have been temporarily halted. Bolt sales fell 64.3% year over year in Q1, hitting just 7,040, as production stopped. A new version of the Bolt is expected to launch in 2025. On the non-luxury side, Ford achieved an 86.1% year-over-year increase in Q1 EV sales with the second-highest EV sales volume behind Tesla.

Cox Automotive forecasts EV sales in the U.S. to increase year over year in 2024, making this year the best year ever for EV sales. Analysts expect EV sales to reach roughly 10% of the market by the end of the year, up from 7.3% in the first quarter.

Originally posted by Cox Automotive- https://www.coxautoinc.com/market-insights/q1-2024-ev-sales/#:~:text=Electric%20vehicle%20(EV)%20sales%20growth,a%20decrease%20from%20Q4%202023

May Newsletter

As another month rolls by, our industry is faced with a new, and potentially even more complex set of concerns.
 
For much of the last 3 years, dealers have seen credits on their income statements when it came to floor plan expense. With inventory levels continuing to rise, dealers are feeling the impact of the costs associated with the increased values of today’s vehicles and the growing numbers of days in inventory. To compound this, dealers across the country are sitting on thousands of unsold EV’s and some are struggling to come up with ways to move this inventory without taking a massive hit on their front-end gross. We have successfully created strategies within dealers’ reinsurance positions to offset most, if not all of their floor-plan expense. Let us know if you would like to explore a creative solution. 
 
Another issue dealers are, and will continue to face for the foreseeable future, is the compounding negative equity in the market. Per COX Automotive, the average negative equity is over $6,000 per vehicle. This will lengthen the trade cycle, compress front-end gross and limit opportunities for F&I. There are few tools to properly deal with this, and even fewer companies who know how to guide dealers through this. We are thankful for our partnership with AutoPayPlus whose program accelerates customers equity and can shorten the length of a customer’s loan term by 10% or more. Additionally, when a deal is enrolled with AutoPayPlus, we see an average increase of .9 products per deal, and an additional $512 in PVR. We would love to show you how to improve your customer’s equity position as well as increase your overall profitability, today, tomorrow and for years to come.
 
Lastly, there are a lot of people in our space who talk big but perform small. Although we may not shout it from the rooftops, we are extremely proud of the work we do for our dealers and the additional profits we help them generate, and keep. If you want to learn more about what it is like to have someone truly represent your full interest, please reach out to us to see if we are a good fit for you.
 
Sincerely,
 
Bob and Ryan

IN THE NEWS
Fed leaves rates unchanged, flags ‘lack of further progress’ on inflation
Is IRS Abusing its Authority in Micro-Captives Investigations?
EV Sales Growth Slows; Market Leader Tesla Stalls
Stellantis sales drop 10% in first quarter
RVIA’s March 2024 Report Reveals 9% RV Shipment Increase Through First Quarter

Events we will be attending: 
NAMAD – https://web.cvent.com/event/edcd733e-ea51-4261-842b-30b68f704934/summary
RVDA – https://www.rvda.org/Convention
F&I Product and Reinsurance Conference – https://www.fandi-conference.com/

Good luck and Good Selling!

Link to full Newsletter https://mailchi.mp/advdealer.com/may-newsletter-wwcephsrkn

More Trade-Ins Under Water

Trade-in vehicles in negative equity are at a two-year high, according to Edmunds data.

Of those traded in the fourth quarter for new-vehicle purchases, 20.4% were in negative equity, up from about 18% a year earlier and 15% two years earlier, Edmunds says.

The average debt level of borrowers in negative equity situations, meanwhile, climbed from $5,347 in the fourth quarter of 2022 to a record $6,064, which is up 46% from two years earlier.

Edmunds said that with renewed new-vehicle sales due to replenished inventories and the return of incentives, used-vehicle transactions have in turn cooled.

“With demand for near-new vehicles on the decline, used car values are depreciating similarly to the way they did before the pandemic, and negative equity is rearing its ugly head,” said Director of Insights Ivan Drury in a press release.

Consumers who paid more than manufacturer’s suggested retail prices during the pandemic are the most vulnerable to going under water because their newer trade-in models are most prone to big value declines.

The average transaction price of 1-year-old vehicles fell 15% in the quarter to $38,720, Edmunds said. ATP of 2-year-old models fell 9% to $32,583.

It’s the reverse of the pandemic scenario of scarce used vehicles due to supply constraints’ effect on new-vehicle production.

“During the last few years, consumers could jump into new car loans and their trade-ins were shielded from negative equity because some dealers, desperate for used inventory, were willing to pay near original purchase prices,” Drury said. “These days, consumers need to be more careful — especially if they’re trading in newer vehicles — because near-new cars are being hit the hardest by depreciation.”

Originally posted in F&I Showroom. https://www.fi-magazine.com/373319/more-trade-ins-under-water

Viewpoint: Is IRS Abusing its Authority in Micro-Captives Investigations?

A pair of federal Tax Court decisions at the start of 2024 are painting a concerning picture that the IRS is abusing its authority and attempting to become a quasi-federal governing agency over the insurance industry. The IRS secured a pair of victories against a form of self-insurance for small businesses known as micro-captive insurance. The cases—Keating v. Commissioner and Swift v. Commissioner—used biased fact patterns to support the unfounded principle that all micro-captives are tax shelters or tax schemes.

Neither decision provided guidance nor clarification of how honest micro-captive owners should structure their captive arrangements to remain compliant with IRS regulations. Without such guidance, small to mid-size business owners are subject to open scrutiny at the whim of a federal agency attempting to seize regulatory control of an industry already regulated at the state level.

These victories are contrary to why the 831(b) tax code was written. Similar to what we are seeing today, this code was originally written during a time in which Americans were saddled by a hardened insurance market. Originally passed in the 1980s, Section 831(b) was designed to empower small to mid-sized insurance companies by excluding part of their income from taxation, allowing them to better compete with larger insurance providers and provide a vehicle of self-insurance against risks that may not be covered by insurance companies.

The 2015 Protecting Americans from Tax Hikes Act states that companies are eligible for this type of risk mitigation under Section 831(b) of the tax code when the owner of an insured business holds an interest in the insurer no greater than their interest in the business.

In January, IRS Commissioner Danny Werfel disclosed that nearly 1,100 micro-captives are under IRS investigation. Business owners and plan administrators who are caught up in these audits are then sifted through, with the IRS seeking only cases in which wins are virtually guaranteed. Instead of providing a conclusive determination for other taxpayers who can legitimately benefit from using an 831(b), the IRS uses its ambiguous scrutiny as a deterrent from using these plans, which in some cases can provide a lifeline to small to mid-size businesses.

The IRS has made clear its dislike of micro-captives and is working to eliminate them through its overreach of power and intimidation. This gross misuse by a bureaucratic agency directly contradicts congressional support for the existence of micro-captive insurance. To put it bluntly, the IRS is undermining the laws passed by our nation’s elected representatives and wants to put insurance regulation in the hands of the federal government.

In December, multiple members of the U.S. House Committee on Ways and Means Committee wrote to Werfel to express their disdain about the IRS’s treatment of micro-captives. The members of Congress called for the IRS to work with the insurance industry to develop a mutually agreeable path forward for small to mid-size businesses to utilize this section of the tax code without fear of retribution from the IRS.

The decision in Keating is concerning. In fact, the judge alluded to how the courts believed insurance companies should be regulated.

The McCarran-Ferguson Act of 1945 provides the framework for how the insurance industry is regulated in the U.S.— the federal government can define insurance for federal tax purposes but is prohibited from overreaching into the regulation of insurance, which is instead left to the individual states.

Without action from Congress, or the IRS backing off its assault on our industry, the overreach of power toward micro-captive owners will likely continue, along with its efforts to eventually obtain federal oversight over other parts of the insurance business. The question of overreach by the IRS isn’t a question of if it will stop, but rather a question of when and how. The ripple effects will have far greater implications on the insurance industry as a whole than anything else that may come of this IRS case.

Van Carlson is founder and CEO of SRA 831(b) Admin. He has more than 25 years of experience in the risk management industry and started his career with Farmers Insurance Group.

Article originally published by Insurance Journal https://www.insurancejournal.com/news/southeast/2024/03/27/766616.htm

Kansas car dealer indicted for rolling back odometers as cases surge nationwide

A Kansas businessman who was indicted Monday on charges connected to altering vehicle odometers is the latest case of odometer fraud in the United States, a crime that costs American car buyers more than $1 billion annually, according to federal authorities.

Adam Newbrey, 31, of Derby, Kansas, was charged with 27 counts of criminal misconduct, including odometer tampering, aggravated identity theft, and mail fraud, among other charges, the U.S. Attorney’s Office for the District of Kansas said in a news release. According to prosecutors, he allegedly purchased used vehicles in Kansas and Oklahoma, and altered the odometers in 2020 and 2021.

Newbrey then used fraudulent documents to obtain vehicle titles from the Kansas Department of Revenue that reflected the falsified odometer readings, prosecutors claim. He is also accused of using the titles with the misrepresented mileage to defraud car buyers.

According to court documents, Newbrey operated three used car dealerships in Wichita: iDeal Motors, Midwest Wholesale, and Prestige Motors. In 2022, iDeal Motors was banned from legally selling cars in Kansas and was fined more than $159,000 following an investigation into consumer complaints about the dealership, KWCH reported.

Odometer fraud across the country is rising each year, according to data firm Carfax. The National Highway Traffic Safety Administration estimates that more than 450,000 vehicles are sold each year with false odometer readings causing consumers to lose over $1 billion annually.

Digital odometers make rollback scams easier

There is a misconception that odometer fraud has declined with digital odometers, according to Carfax research. Recent data suggests that more than 2.1 million vehicles were identified with rolled-back odometers in 2023, a 7% increase from the previous year and up 14% since 2021.

Before modern vehicles, odometers were rolled back manually on a mechanical instrument. But “odometers have since become digital, with the last round of mechanical odometers hitting the road in the early 2000s,” according to Carfax. Now, digital odometers can be rolled-back by removing a car’s circuit board or using equipment that fastens into the vehicle’s electronic circuit.

“Odometer fraud didn’t go away with the introduction of digital odometers,” Patrick Olsen, editor-in-chief at Carfax, said in a statement last December. “We’re still seeing the number of vehicles on the road with a rolled-back odometer rise year-over-year. It takes con artists only a matter of minutes to wipe thousands and thousands of miles off a vehicle’s odometer.”

Typically, higher mileage leads to depreciation in the value of vehicles. Fraudsters tamper with vehicle odometers to rollback the number of miles, deceiving buyers into thinking the car has a lower mileage and a higher purchase price.

As of February, the average used-vehicle listing price was $25,328 — down 4% from a year earlier — according to Cox Automotive. “Though used-vehicle prices are lower now versus 2022 and 2023, they remain much higher than in 2019,” Cox Automotive said in an article.

According to Carfax data, consumers lose an average of $4,000 yearly in rollback scams, which doesn’t include unexpected maintenance and repair costs.

California, Texas, and New York are among states with most rolled-back odometers

Last year, Carfax research found 10 states nationwide with the most cars with rolled-back odometers. Nine of the states saw a rise in rollback scams, while only one remained unchanged:

  1. California: 469,000, up 7.2%
  2. Texas: 277,000, up 12.8%
  3. New York: 100,000, up 9.0%
  4. Florida: 85,400, up 1.4%
  5. Illinois: 79,000, up 7.6%
  6. Pennsylvania: 69,600, up 2.1%
  7. Georgia: 67,600, up 4.0%
  8. Arizona: 57,000, up 4.8%
  9. Virginia: 56,000, unchanged
  10. North Carolina: 49,000, up 8.2%

How to protect yourself from rollback scams

Industry experts say odometer rollback fraud can easily be avoided. Experts recommend examining the vehicle and asking the seller questions about the car’s condition, including the odometer reading.

“If the car shows low mileage but has a lot of wear on the seats, pedals, tires, and steering wheel, that may be a sign that something is amiss,” according to Capital One Auto Navigator.

Capital One and Carfax also recommend the following tips to avoid rollback scams:

  • Check the car’s history report. Copies can be obtained from websites such as Carfax and AutoCheck.
  • Review vehicle documents, including the vehicle’s original title, which will show the car’s mileage at the time the title was created. Maintenance and repair records can also show mileage numbers.
  • Take the car to a mechanic to inspect its condition before buying

Anyone who suspects a seller committed fraud by rolling back the car’s odometer is advised to contact a state enforcement agency. Agencies that investigate odometer rollback cases differ from state to state, according to Carfax.

Article originally published by USA Today https://www.usatoday.com/story/news/nation/2024/03/18/car-dealer-indicted-rollback-odometer-fraud/73023396007/

April Newsletter

Spring has Sprung! This is our favorite time of year and not just because of the great April Fool’s pranks! It is our favorite because the weather changes, the return of baseball , The Masters tournament and it’s the unofficial start of our favorite season of all, Selling Season! 

Auto, Powersports and RV dealers all get excited for this time of year as customers get their tax refunds and head to their local dealership to indulge in a new purchase. Although there was a somewhat flat start to the year, optimism continues to build as more and more consumers are acclimating to the new norms of vehicle prices, interest rates, etc. 

Our markets have changed drastically over the last few years, and we are finding more and more dealers looking for ways to stay ahead of the curve, maintain COVID level profitability and maximize each transaction with as many products and profit as possible. 

At ADS, we pride ourselves on providing holistic solutions for dealers. Whether it be a dealer looking to mitigate the impending negative equity monsoon (see info and video below), a dealer looking to maximize their marketing and customer data spend (https://clientcommand.com/), a dealer looking to right size their reinsurance position after seeing a spike in loss ratio or a dealer looking to provide their sales staff an extra boost with some training and development solutions (see below for course registration), we at ADS have you covered. 

Of course, this in all in addition to our high-performance F&I training and development platform that we have been deploying and perfecting over the past 10-years. 

If you are a dealer who wants ‘More in ‘24’, then reach out to us to see if we are potentially a fit for what you are looking for. 

To view the full newsletter visit https://mailchi.mp/advdealer.com/april-newsletter-7ms0opj48u

Study Expects Auto Industry To Work Harder To Maintain Profits In 2024

The U.S. auto industry is entering a “new normal” where automakers and dealers will labor harder to maintain profits, a report by Dave Cantin Group and Kaiser Associates says.

During the COVID-19 pandemic, supplies of vehicles on dealer lots fell. That meant higher vehicle prices and increased margins for automakers and dealers.

That is likely to shift this year, according to the report.

“The U.S. automotive industry has had an exceptional last few years,” the report said. “Indeed over the past 3+ years it seems like everyone won – everyone, that is, except the consumer (who has paid higher prices for fewer choices, longer lead times and more competition to get a vehicle at all.)”

In 2024, industry’s new normal “won’t look quite as attractive as it did in 2023, but better than it did (for manufacturers and dealerships) in 2019,” the report said.

Dave Cantin Group and Kaiser conducted interviews with industry analysts and executives as well as surveying more than 1,000 consumers.

Among the factors cited by the report as having an impact on the industry:

—“The economic climate in the U.S. is healthier than predicted going into 2024 – but a positive macro economic climate increases the complexity facing the industry.”

Interest rates may begin to decline later this year after efforts by the Federal Reserve to curb inflation. In turn, dealers may need to boost inventory and increase advertising spending, according to the report.

“Dealerships should expect to work harder to maintain profitability in 2024,” the report said.

At the same time, declining interest rates “are likely to unlock pent-up demand, resulting in greater vehicle sales.”

—Consumers surveyed are more likely than ever to buy SUVs. Of respondents, 44% said they want an SUV for their next vehicle.

“Consumers may be moving toward SUVs because of reliability, versatility, and safety, despite higher price tags,” the report said. “This shift may also align with brand preference: some of the brands consumers are most likely to buy are primarily known for SUVs.”

Automakers, including General Motors Co., Ford Motor Co., Toyota Motor Corp. and Nissan Motor Co. have retired car models over the past several years. Ford, for example, said in an April 2018 earnings announcement, that 90% of its North American vehicle fleet would be trucks, SUVs and commercial vehicles by 2020.

The report said increased SUV deliveries will mean higher revenues and profits, according to the report.

—International situations such as U.S.-China tensions and Middle East conflicts could still disrupt the industry. “Geopolitical conflicts could drive a U-turn on consumer sentiment” and lower the willingness of automakers “to make strategic investments,” the report said.

Article by Bill Koenig published by Forbes https://www.forbes.com/sites/billkoenig/2024/02/26/study-expects-auto-industry-to-work-harder-to-maintain-profits-in-2024/?sh=15255fcb433f

March Newsletter

Welcome to March, everyone! Let’s all hope it comes in and goes out like a lion in terms of sales!

This year’s NADA was fantastic for the ADS leadership team. It was the busiest, most productive, and most enjoyable NADA we can recall. Despite some of the negative outlook for our industries’ sales this year, the overall sentiment was positive, and downright palpable.

We met with many of our valued vendor partners and found time to break some bread with a few of our cherished dealer partners. While in our meetings, we were introduced to several new and exciting programs, and we are excited to roll out to our dealer network in the coming months.

While at NADA we heard dealers talk of ‘cutting back’ on expenses, or ‘trimming the fat’. One of our takeaways from the convention is that there is room to improve on efficiencies and profitability in the stores. When working with the right partners, there are several ways to grow sales, F&I profitability, service retention, and reinsurance results with minimal time investment. Are you ready to investigate a better way of doing business? Give us a call to learn more about how ADS can help you recapture some of those lost profits.  

In the next couple of months, the team at ADS will be hard at work putting together and hosting a couple of first-class sales and sales management training classes. Be sure to subscribe to our LinkedIn page as well as our YouTube channel to stay up to date with all things ADS.

Also, ADS has officially entered the risk management business and we are currently providing competitive quotes for dealers on their commercial insurance needs. We are deploying the same truly independent, dealer-first mindset when it comes to preparing the proper package of coverages and premiums. Reach out to your ADS representative to learn more. 

To view the full newsletter https://mailchi.mp/advdealer.com/march-newsletter-aswoa5ppxr

History of Mardi Gras

When Is Mardi Gras? 

Mardi Gras is traditionally celebrated on “Fat Tuesday,” the Tuesday before Ash Wednesday and the start of Lent.  In many areas, however, Mardi Gras has evolved into a week-long festival. 

Mardi Gras 2024 will fall on Tuesday, February 13.

What Is Mardi Gras?

Mardi Gras is a tradition that dates back thousands of years to pagan celebrations of spring and fertility, including the raucous Roman festivals of Saturnalia and Lupercalia.

When Christianity arrived in Rome, religious leaders decided to incorporate these popular local traditions into the new faith, an easier task than abolishing them altogether. As a result, the excess and debauchery of the Mardi Gras season became a prelude to Lent, the 40 days of fasting and penance between Ash Wednesday and Easter Sunday.

Along with Christianity, Mardi Gras spread from Rome to other European countries, including France, Germany, Spain and England.

What Does Mardi Gras Mean?

Mardi is the French word for Tuesday, and gras means “fat.” In France, the day before Ash Wednesday came to be known as Mardi Gras, or “Fat Tuesday.”

Traditionally, in the days leading up to Lent, merrymakers would binge on all the rich, fatty foods—meat, eggs, milk, lard and cheese—that remained in their homes, in anticipation of several weeks of eating only fish and different types of fasting.

The word carnival, another common name for the pre-Lenten festivities, also derives from this feasting tradition: in Medieval Latin, carnelevarium means to take away or remove meat, from the Latin carnem for meat.

New Orleans Mardi Gras

The first American Mardi Gras took place on March 3, 1699, when French explorers Pierre Le Moyne d’Iberville and Sieur de Bienville landed near present-day New OrleansLouisiana. They held a small celebration and dubbed their landing spot Point du Mardi Gras. (Some argue the port city of Mobile, Alabama was actually the first to observe the event.)

In the decades that followed, New Orleans and other French settlements began marking the holiday with street parties, masked balls and lavish dinners. When the Spanish took control of New Orleans, however, they abolished these rowdy rituals, and the bans remained in force until Louisiana became a U.S. state in 1812.

On Mardi Gras in 1827, a group of students donned colorful costumes and danced through the streets of New Orleans, emulating the revelry they’d observed while visiting Paris. Ten years later, the first recorded New Orleans Mardi Gras parade took place, a tradition that continues to this day.

In 1857, a secret society of New Orleans businessmen called the Mistick Krewe of Comus organized a torch-lit Mardi Gras procession with marching bands and rolling floats, setting the tone for future public celebrations in the city.

Since then, krewes have remained a fixture of the Carnival scene throughout Louisiana. Other lasting customs include throwing beads and other trinkets, wearing masks, decorating floats and eating King Cake.

Did you know? Rex, one of the oldest Mardi Gras krewes, has been participating in parades since 1872 and established purple, gold and green as the iconic Mardi Gras colors.

Louisiana is the only state in which Mardi Gras is a legal holiday. However, elaborate carnival festivities draw crowds in other parts of the United States during the Mardi Gras season as well, including Alabama and Mississippi. Each region has its own events and traditions.

Mardi Gras Around the World

Across the globe, pre-Lenten festivals continue to take place in many countries with significant Roman Catholic populations.

Brazil’s weeklong Carnival festivities feature a vibrant amalgam of European, African and native traditions. In Canada, Quebec City hosts the giant Quebec Winter Carnival. In Italy, tourists flock to Venice’s Carnevale, which dates back to the 13th century and is famous for its masquerade balls.

Known as Karneval, Fastnacht or Fasching, the German celebration includes parades, costume balls and a tradition that empowers women to cut off men’s ties. For Denmark’s Fastevlan, children dress up and gather candy in a similar manner to Halloween—although the parallel ends when they ritually flog their parents on Easter Sunday morning.

Article provided by History.com https://www.history.com/topics/holidays/mardi-gras.

February Newsletter

As this newsletter is being delivered, the ADS leadership team will be at NADA in Las Vegas. This year’s show is sure to be jammed packed with great meetings, time with some of our valued dealer clients, as well as meeting many new dealers interested in improving their F&I sales process and results.

It was two years ago when NADA was last in Las Vegas. During that show, EV’s were ALL the rage! There was so much talk and hype about EV’s and the demise of the ICE vehicles. It was the FUTURE, or that is what they wanted you to believe.

At that time, we published an article on our skepticism of the prognosticators certainty around the adoption rate of the BEV’s. This was met with some negativity when it came out, but we must remember that two years ago there were months’ worth of backorders for anything electric, so it was only fair to receive some criticism over our cautionary approach.

Now here we are entering another industry event and another manufacturer (Volvo) just pulled back funding on their EV program – much to the pleasure of Wall Street, as their stock surged 20% on the news.

So how did we go from all the rage to a mere footnote in just two years? Is it because the demand was artificial, the talking head CEOs were making statements to appease their investor base, or have we now had two years of real world experience to prove out a lot of the concerns we pointed out. Most likely, it is a combination of all the above.

Let’s be clear, there is a place for EV’s and there is some demand for them, but it is not NEAR what we were being led to believe. The EV market will continue to grow and may even see some significant growth (due to its relatively small market share currently), but the ICE based vehicles that have powered this country for over a century, may just be around for another century…

We hope everyone has a tremendous NADA show.

Events we will be attending:

NADA 2024 – https://www.nada.org/nada-show
Cleveland Auto Show – https://www.clevelandautoshow.com/

Good luck and Good Selling!

Sincerely, 
Bob and Ryan

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