American Honda Aims to Increase CPO Leasing Mix
American Honda is building new initiatives around its certified pre-owned program to attract more consumers to used-car leasing. “Leasing is a very small percentage of CPO business across the industry, but Honda is hoping to change that,” Dan Rodriguez, the company’s director of auto remarketing and fleet operations, told Automotive News. Of the 350,000 annual CPO sales across the Honda and Acura brands, leasing comprises less than 1 percent, according to the company. “American Honda is targeting a 5 percent CPO lease rate over the next two to three years,” Rodriguez said. Honda plans to attain this goal by expanding the CPO leasing program it announced last December as a way for both young and first-time buyers to have access to well-equipped Honda models with higher price points. Expansions include a new online calculator and a CPO lease page on the consumer site to simplify the process and explain leasing options. These functions will make it easier for consumers to understand leasing choices, Rodriguez said. His team is working with dealers to maximize the new tools as well as create others that will make the process “quick and digital,” he said. Click here for the full story.
NAMAD Chairman Damon Lester Recaps the 2024 Annual Conference
In today’s episode of CBT Now, Damon Lester, Chairman of the National Association of Minority Automobile Dealers (NAMAD), joins us to discuss the successful 2024 NAMAD Annual Conference. The event, held at the luxurious Fontainebleau in Miami, featured influential speakers, engaging discussions, and valuable takeaways for the automotive industry. Lester also joins us to provide insights into the current challenges facing minority dealers and offer strategies for dealerships to adapt and succeed in a changing market. Over the past two decades, the NAMAD conference has expanded from 150 attendees to over 1,300. This growth demonstrates the increasing importance of minority dealers in the automotive industry and the organization’s sustained efforts to empower them. A significant focus of the 2024 conference was fostering the next generation of dealers. NAMAD has launched a leadership academy in partnership with Ally, designed to train and accredit aspiring dealers, preparing them for successful careers as business owners. Mark Bland from S&P Global presented critical data showcasing the increasing buying power of minorities, who now purchase over 40 percent of new cars and trucks. NAMAD emphasizes that dealers who fail to engage with this “future majority” risk stunting their growth. Click here for the full interview.
Porsche Kicks Off Electron-Powered Product Offensive
Porsche’s product rollout in the next few years will halve the portfolio’s age, from three years to 18 months. “2024 is going to be a year of product launches for Porsche — more so than any year in our history,” CEO Oliver Blume said at the company’s annual press conference in March.The product offensive leans on electrification as the high-octane sports car brand strives to stay relevant in a low-emissions world. So far in 2024, Porsche has delivered the all-electric Macan crossover and updated its Panamera and Taycan sedan nameplates, reports Automotive News. Early next year, the first electrified 911 rolls into U.S. dealerships. Electric versions of the 718 Cayman and Boxster sports cars and the Cayenne crossover follow. Electrification also will propel Porsche into a new, more profitable segment later this decade. Porsche is developing a luxury flagship SUV that could be a credible competitor to the segment’s gold standards — the Mercedes-Benz GLS and BMW X7. Blume said the new electric vehicle, built in Leipzig, Germany, will be “the sportiest offering” in its segment. Click here for the full story.
Tested: 2025 Audi Q7 and SQ7 Nail the Basics
If you’re on the hunt for a German luxury SUV that seats more than five, the Audi Q7 makes quite the compelling offer. Fellow full-time three-rows such as the BMW X7 and the Mercedes-Benz GLS-class are a fair bit larger and carry price tags some $20,000 higher. The Q7’s footprint and price tag align more closely with the Mercedes GLE-class, which only offers an optional third row of seats, reports Car and Driver. (The BMW X5 no longer offers a third row at all.) Speed freaks will undoubtedly look toward the uppers-gobbling SQ7, which positions itself between the GLE’s two hopped-up AMG powertrains in terms of both power and price. For 2025, Audi has given both the Q7 and SQ7 a mild refresh in hopes of boosting the SUV’s appeal. There’s a bit more tech, and a bit more style, but the underlying points remain the same: The Q7 and SQ7 offer a solid value with the driving dynamics to match. Since the Q7 and SQ7 are only refreshed for 2025, the changes aren’t very prominent. Click here for the full story.
Industry Voices | Government Incentives’ Impact on EV Sales
Electric vehicles have evolved from niche products into mainstream contenders in the automotive market. This reasonably rapid transformation is not solely due to advancements in technology or a shift in consumer preferences, however. A significant factor driving the adoption of EVs has been government incentives, particularly in the form of tax rebates, reports Wards. These financial incentives have played a crucial role in making EVs more accessible to the average buyer, but they have also introduced an unprecedented level of complexity and volatility into the market. Government tax rebates for EVs began in 2008 as a “temporary measure” designed to jumpstart EV adoption and were altered and expanded under the IRA, which has significantly boosted EV sales. These incentives, such as the $7,500 rebate for new EV purchases, have effectively lowered the upfront cost of these vehicles, making them more attractive to shoppers. Yet, the complexity of these incentives is a continuing issue. Various codes tied to different vehicle types and eligibility criteria create confusion among consumers, dealers and manufacturers. Eligibility often depends on factors like vehicle price, battery composition, manufacturing origin and the buyer’s income, which has led to uncertainty in the market. Click here for the full story.
Navigating Cybersecurity Events: A Dealer Guide to Insurance Claims
Sarah McKnight, CPA, Partner, Moss Adams
Kim Linebarger, CPA, Director, Moss Adams
In today’s digital age, cybersecurity is a top priority for businesses of all sizes. Unfortunately, as recent events have highlighted, even with the best security measures in place, dealers can still experience data breaches and cyber-attacks.
Below are three impactful actions dealers can take to help overcome insurance claim challenges related to cybersecurity events.
- Determine Insurance Coverage
- Contact Insurance Provider
- Assess Potential Claim
Successfully overcoming a cybersecurity event, mitigating damages, and recovering losses requires swift action by dealers, which can be difficult during and directly after the crisis. However, with the right guidance and support, dealers can take the necessary actions to protect their assets and move forward with confidence. To learn more about how Moss Adams can help, click here.
Around the Web
2025 Nissan Versa Starts at $18,330 and Is the Last Sub-$20K New Car [Car and Driver]
Should I Get a Hybrid or Go Full Electric? [The New York Times]
AM Radio for Every Vehicle Act Passes Panel Vote [Automotive News]
Is Bigger Always Better? Surprisingly Unsafe Vehicle Segments Compared [Carbuzz]