Dealers Need Guidance on Pre-Owned EV Sales Price Cap

First Up 09/18/23

Dealers Need Guidance on Pre-Owned EV Sales Price Cap

Car dealers looking to move more used electric vehicles off their lots say guidance is needed from the U.S. Treasury Department to confirm what's included in the pre-owned-EV tax credit's sales price cap. As part of the IRA, qualified buyers could get up to $4,000 for the purchase of an eligible used EV under Internal Revenue Code Section 25E. Vehicles must be at least two model years old and cost $25,000 or less, but they are not subject to the same stringent battery sourcing rules as the revamped tax credit for new sales of personal EVs, known as Section 30D. According to Automotive News, the Treasury in December clarified what's counted in the retail price for new EVs, specifying that "optional equipment physically attached to the vehicle at the time of delivery to the dealer" is included, while optional items added by the dealer as well as destination charges, taxes and fees are not. However, it did not specify what's counted toward the sales price for used EVs. "With the discussions I've had with dealers, they're obviously having to make a judgment call as to what 'sales price' really means," said Adam Neporadny. Click here for the full story.

Honda Gets Its Mojo Back Ahead of Schedule

The Honda brand is in the midst of a swift recovery from a pandemic and chip shortage-related sales slump and is on track to close 2023 with sales of 1.2 million vehicles now projected. "We expected at this point to be up around 25 percent, so we are growing past that," Lance Woelfer, Honda brand's sales chief, told Automotive News. Last year, with microchip shortages still causing widespread production interruptions, Honda sold 881,201 vehicles. In 2019, the last full pre-pandemic year, the brand sold 1.5 million. But through the first eight months of this year, Honda volume is up 30 percent with sales of 757,375 vehicles, according to the Automotive News Research & Data Center. And it closed August up 56 percent compared with August a year ago, well ahead of the industry's estimated growth of 17 percent. It is enjoying a tailwind of having redesigned key models in its portfolio for 2023, including the Accord sedan and the Pilot, CR-V and HR-V crossovers. The Japanese automaker was heavily impacted by production delays and supply chain problems and struggled to get inventory to dealers throughout 2022. It closed 2022 down 33 percent. Click here for the full story.

10 New Vehicles Join the American Electric Car Race

Those who craft their identity around driving the most esoteric electric car may be having a frustrating year. Teslas are basically Chevys now. Hummers are borderline ho-hum. The coolest, or at least most current, neighbors at the cookout are bragging about their VinFast. According to Bloomberg, as the nascent U.S. EV market continues to swell, 10 new models have gone on sale in recent weeks, bringing to 51 the number of battery-powered cars and trucks Americans have to choose from. That’s far fewer than the hundreds of models on offer in China or the 80-plus available in many European countries, but it’s growing quickly. At this time 12 months ago, the U.S. only had about 30 models. “I do believe we’re beyond the point of no return,” says Brian Collie, senior partner, and head of the auto unit at Boston Consulting Group. “If you look at where the [automakers] are prioritizing their best designers, their best engineers, their best technologists — it’s all electric vehicles.” The recent product blitz, however, is still at the margins of the market. EVs accounted for 7.3 percent of new-car sales in the US in the second quarter. Click here for the full story.

Have New Car Prices Finally Hit a Ceiling After Years of Increases?

Both new and used car prices have been consistently on the rise in the United States over the past few years, but new data has revealed that the average price that Americans paid for a new vehicle last month was largely stable from where it was one year ago. According to Carscoops, data from Kelley Blue Book reveals that the average transaction price (ATP) of a new vehicle in August was $48,451. Although this is a small $286 (0.6 percent) increase from July, it is just $42 higher than the ATP in August 2022. Cox Automotive notes that the ATP for a non-luxury vehicle in August was $44,827. This is a $169 fall from July and just a 0.7 percent increase from August 2022. The ATP of compact cars, subcompact cars, and subcompact SUVs were all sitting below $30,000 last month. Not only have ATPs of non-luxury cars remained relatively steady but the ATPs of luxury vehicles are actually down 3.3 percent year over year to $64,107. “After a tumultuous last few years in the automotive marketplace, now we are seeing new-vehicle pricing trends hold steady,” Cox Automotive research manager Rebecca Rydzewski said. Click here for the full story.

Volvo and Polestar Buyers Have More Entertainment Options Than Ever

A movie streaming service is set to debut in Volvo and Polestar cars equipped with Google built-in, specifically in the form of Amazon Prime Video. While movie and TV streaming apps - like Prime Video, Netflix, Disney+, etc. - can already be integrated into some head units through "jailbreaking," these apps remain an aftermarket job rather than an official service offered off the factory - until today. Unlike the Fire TV awesomely integrated on the rear screens inside the Jeep Grand Cherokee, Google built-in is found on the main infotainment system within the driver's view, reports Carbuzz. The integration of Prime Video within the Google Play Store app on specific models, including the Polestar 2 and select Volvo cars, such as the yet-to-be-delivered EX90 and EX30, shows the tech giant's efforts to revolutionize the in-car entertainment experience. Drivers and passengers can now enjoy watching their favorite shows and movies while the vehicle is stationary. This is especially handy in EVs, where drivers must wait for their cars to charge. Click here for the full story.





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