In the first few months of 2022, wholesale vehicle prices saw a slight drop for three months straight.

However, prices began to rise again in June after three months of consecutive declines.

This price increase occurred amid:

• Higher gas prices
• Inflation
• Higher interest rates on homes
• Home prices still being high

One possible reason for this trend:

• More new car inventory became available early in the year (Feb-April), slowing down the used car market.
• In May and June, new car inventory decreased significantly again.

Data shows that major manufacturers like Mazda, Toyota, Honda, and Subaru have only 5-15 days of vehicle supply, making it harder for dealerships to run.

Dealerships may now be turning to used cars to fill their inventory gaps.

Discussion point: If you're a dealer, what are you seeing in terms of used car prices? Are retail prices rising, or are your margins getting thinner for used car inventory?

Vehicle Market Challenges:

• New cars are scarce, and dealer lots are nearly empty.
• Used car prices are skyrocketing due to inflation in gas, groceries, and mortgages.

Electric Vehicles (EVs):

• Despite shortages, EV sales are booming.
• EV production still lags behind gasoline vehicles, with only 5-8% of new cars being electric.

Gasoline Costs Driving EV Demand:

• Gas prices doubling from $3 to $6 per gallon is pushing buyers towards EVs.
• EVs eliminate gas costs but come with higher upfront expenses.

Cost Comparison: EVs vs. Gasoline Vehicles:

• EVs typically cost $15,000-$20,000 more than gasoline cars.
• Financing an extra $20,000 adds approximately $400/month to payments.
• Gas savings often balance out financing costs, but not always.

Hidden Costs of EV Ownership:

• Electric bills increase significantly with regular charging.
• Seasonal energy spikes (heating or cooling) can add $300-$400 to monthly bills.

Battery Longevity Concerns:

• Battery lifespan and replacement costs are uncertain.
• Example: A used EV with an expired battery cost $14,000 to replace—more than the car’s purchase price.
• Batteries are custom-made for specific models, making replacements complex and costly.

Upcoming Discussion:

• A deeper dive into the challenges of EV battery replacements in older models.
• Why EV batteries aren’t interchangeable like traditional car engines.

Call to Action:

• Share your thoughts on electric vehicles. How do rising gas prices influence your plans?

Stay tuned for more insights in upcoming episodes!

Description:

• Discussion on a recent World Economic Forum (WEF) article addressing challenges in the EV transition.
• Exploration of critical metals required for EV batteries: nickel, cobalt, lithium, and rare earth metals.
• Recycling limitations: Not enough materials in circulation to meet future demand.
• WEF's proposed solutions:
  • Transition from vehicle ownership to shared vehicle models.
  • Rental-style car-sharing platforms as a key driver for change.
  • Redesigning cities to minimize travel distances and reduce private vehicle dependency.
• Environmental trade-offs:
  • Mining new materials could harm the environment more than current fossil fuel use.
  • Forecasted 500% increase in mineral production may still fall short of EV demands.
• Current EV adoption:
  • EVs account for only 2-3% of global vehicles today.
  • Vehicle ownership is growing 5-6% annually, complicating the transition to 100% EVs.
  • Concerns about the electrical grid's capacity to handle widespread EV use.
• Key questions raised:
  • Is the EV transition feasible given resource and energy constraints?
  • Could mining for EV materials outweigh environmental benefits?
  • Are alternative solutions, like community vehicles and urban redesign, practical?

Listener Takeaways:

• Consider whether an EV fits your needs and lifestyle.
• Reflect on whether this shift raises red flags or questions for you.
• Engage in the conversation about the future of transportation and sustainability.

We want to hear from you!
What are your thoughts on the EV transition? Are you planning to switch to an electric or plug-in vehicle? Share your insights and join the discussion.

Description:
In this episode, we dive into the ongoing challenges in the automotive industry caused by the global chip shortage. Whether you're a consumer looking to purchase a vehicle or a car dealer navigating inventory hurdles, this episode offers crucial insights:

• Chip Shortage Timeline: How the shortage began in 2020 and why it’s unlikely to end anytime soon.
• Underlying Issues: The lack of manufacturing equipment and evolving chip technologies contributing to prolonged bottlenecks.
• Impact on New Cars: Limited inventory and missing features like heated seats and backup cameras due to unavailable chips.
• Used Car Market Surge: Why used car values have skyrocketed and may remain high for years to come.
• Gasoline vs. Electric Vehicles: How the transition to EVs affects chip production and the future of gasoline vehicle inventory.
• Industry Outlook: What dealerships, consumers, and businesses should plan for in a shifting automotive landscape.

Key Takeaway: The current inventory levels for gasoline vehicles may never improve significantly. This crisis demands long-term adaptation for all stakeholders in the automotive market.

Join the Discussion: Share your thoughts and experiences in the comments. How is this affecting you as a consumer or professional?

In this episode, we dive into a breakthrough that could transform electric vehicle (EV) adoption. Here's what you'll learn:

• Current Challenges with EV Charging
  • It's not about range anymore—modern EVs already offer 200-300 miles per charge.
  • Charging station availability is improving, but it’s still not as widespread as gas stations.
  • The biggest hurdle: long charging times. Who wants to wait hours for a charge?
• The Solution: Super-Cooled NASA Technology
  • Introducing "sub-cooled flow boiling" technology that can slash EV charging times to under five minutes.
  • This innovation addresses the need for faster charging and could make EVs as convenient as gas-powered vehicles.
• What Needs to Happen Next
  • Vehicle batteries must be compatible with this technology.
  • The power grid and charging infrastructure need to catch up.
• Why This Matters
  • Faster charging times could be the tipping point for widespread EV adoption.
  • With this breakthrough, EVs might finally compete with gas vehicles in terms of convenience.

Tune in to explore how this cutting-edge technology could change the future of transportation!

Description:

• The price of new vehicles, including electric vehicles (EVs) and gas vehicles, has skyrocketed.
• Average vehicle prices are now $40,000-$50,000, leading to car payments of around $1,000/month—more than some rent payments.
• With the rise of EVs, many consumers are considering buying used EVs to save money.
• The Key Risk with Used EVs: The condition of the battery.
• Why Battery Health Matters:
  • The battery in an electric vehicle is like the engine in a traditional car—it's the core driving component.
  • Over time, lithium-ion batteries lose their ability to fully charge, which reduces the vehicle's range, just like how a phone or laptop battery degrades.
  • As the battery degrades, the car becomes less valuable, and its range drops.
  • For example, a car with a 250-mile range could quickly drop to 160-170 miles.
• Warranties and Battery Health:
  • Most new EVs come with an 8-year, 100,000-mile warranty for the battery.
  • However, this warranty only kicks in if the battery’s capacity is reduced to less than 70%.
  • You could be stuck with a battery that has a 30% reduced capacity, and the warranty won’t cover a replacement.
• Cost of Replacing the Battery:
  • Replacing an EV battery can cost up to $20,000—or more. Some EV batteries cost over $30,000.
  • In some cases, replacement batteries may no longer be available for certain vehicle models, making repair impossible.
• What to Do Before Buying a Used EV:
  • Check the vehicle’s range and ensure it’s consistent with the manufacturer’s specifications.
  • Consider getting a used car inspection from an EV specialist to assess the battery's health.
  • If the range isn’t adequate for your needs, the savings from buying a used EV may not be worth it in the long run.

Takeaway: When buying a used EV, always prioritize the battery’s condition. A bad battery could cost you more than you saved by buying used.

Overview of EV Incentives and Tax Rebates

• The Inflation Reduction Act of 2022 has changed the incentives and rebates available for electric vehicles (EVs).
• It's important to check if a specific vehicle qualifies for the rebate or tax credit, as many vehicles are now ineligible.

Eligibility Requirements

• The final assembly of the vehicle must be in North America for it to be eligible for the Clean Vehicle Credit.
• The vehicle must be U.S.-produced to qualify for the tax credit.

List of EVs Assembled in North America

• Audi Q5, Chevrolet Bolt, Ford F-Series, Ford Transit Van, Mustang Mach-E, GMC Hummers, Jeep Vehicles, Lincoln, Nissan Leaf, Rivian, and all Tesla models are on the list.
• Some vehicles have already met their sales caps, meaning the tax credit may no longer be available for future sales.

Sales Caps and Eligibility

• It's important to check if your EV is still eligible for the rebate by confirming if the sales cap has been met.
• Some vehicles, like the GMC Hummer, Nissan Leaf, and Tesla models, have already reached their sales caps, while others, like the Chevy Bolt and Ford Mustang Mach-E, are still eligible.

Checking Your Vehicle’s Eligibility

• You can check the Vehicle Identification Number (VIN) to confirm if your vehicle is U.S.-manufactured.
• This list is a useful resource to determine if your EV qualifies for the tax credit.

Keep an Eye on Changes

• Laws may change, potentially expanding or limiting these incentives in the future.

Key Discussion Points:

• Stephanie Terrell's Experience: Stephanie bought a used Nissan Leaf with hopes of reducing her carbon footprint and saving on gas, but faced challenges with charging due to not having a private garage.
• Charging Dilemma for Renters: Unlike gas stations, electric vehicle charging stations are not always readily available, leading to long wait times and, in some cases, running out of power.
• Public Charging Stations: While apps can show available charging stations, the wait times can be long as charging an EV can take up to an hour or more. Additionally, drivers often leave their cars unattended, further delaying availability.
• The Problem for Renters and Non-Homeowners: How will renters, apartment, and condominium residents charge their EVs? Many don’t have access to a private garage, and even when charging stations exist, they might not be available for every parking space.
• Challenges for Homeowners Without Garages: Even homeowners in some areas face challenges if they don't have a garage or charging infrastructure, highlighting the broader issue of access to EV chargers.
• Possible Solutions: What strategies and plans are in place to address these issues? Will apartment buildings add more chargers, and what about on-street parking for EVs?
• Call to Action: Share your thoughts on how electric vehicle adoption for renters will play out and potential solutions to the charging dilemma.