The DEETs Issue #6

Nearly Half of New EV Sales in the USA Are Leases

Almost half of all new EVs sold in the U.S. are actually leases, not purchases. That’s right—nearly 50% of new electric vehicles hitting the road are being leased instead of bought outright.?

Here’s why:

Why Are Leases So Popular?

• Federal EV Tax Credits: The rules around federal EV tax credits changed at the beginning of this year, making it more difficult for vehicles to qualify. Buyers, however, realized that they can get around the rules by leasing an EV, opening the door to the full $7,500 credit no matter what the model.?
• Lower Monthly Payments: Leasing an EV often means lower monthly payments compared to buying one. For many, this makes getting into a new electric car more affordable.
• Technology Upgrades: EV technology is advancing quickly. Leasing allows drivers to trade in their old model for a newer, more tech-savvy one every few years, keeping them up-to-date with the latest features and improvements.
• Battery Concerns: With EV battery technology still evolving, leasing reduces the long-term risk of battery degradation and potential costly replacements.

What’s the Impact?

• Market Dynamics: This shift towards leasing shows that consumers are more interested in flexible ownership options and are less tied to long-term commitments. It’s also a sign that the EV market is growing and evolving rapidly.
• Dealerships’ Strategy: Dealerships are adapting by offering attractive lease deals to attract customers. This helps them move inventory quickly and get more people into EVs.

The Bigger Picture

In short, leasing is taking the EV world by storm, offering lower payments and frequent upgrades while helping more people get behind the wheel of the latest electric vehicles.

Leasing is becoming a popular way for people to experience new technology without the long-term commitment of ownership. As EVs become more mainstream, expect leasing to remain a significant part of the market.

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Featured Blog Post: The Top 15 Automotive Newsletters

Don’t worry! We know this isn’t the only automotive newsletter you read! And that’s okay! We’re not jealous! We’re totally cool with it! Really!?

If you’re looking to play the field and get more insights, here are 15 fantastic publications we recommend, from Jalopnik’s Daily Drive to Car Talk to the EV Report and more.?

Just don’t forget about us, okay? Promise?

Click here to read the blog post. ?

Interesting Stats at a Glance

• Sales of battery electric vehicles fell by 10.8% across the European Union in July. Traditional hybrids surged during the same period, now making up 32% of Europe’s new car market. (Source)
• Yet, according to this study, 49% of sales teams at U.S. dealerships have zero interest in selling electric vehicles. Dealers in Tennessee, Alabama, Mississippi and Kentucky have the least interest. (Source)
• According to this study, drivers in the UK have a dismal understanding of how electric vehicles actually work. 57% of them scored 2 out of 10 or lower on a quiz about how EVs function. (Source)
• Even in the digital age - the dealership still matters. According to a study, around 90% of respondents said that the experience of visiting a dealership in person was what made them confident in their purchase decision. (Source)
• The number of post-secondary graduates in the automotive sector has dropped 20% since 2020, which means we’re heading straight for a technician shortage. An estimated 100,000 new technicians need to join the workforce every year through 2026, just to keep up with demand. (Source)

Authenticom Partner of the Month

This month’s Featured Partner is Gary Daniel, CEO of EZ-Wins, software that uses gamification and competition to boost employee engagement and sales for automotive service advisors.?

Gary spoke to us about the power of positive motivation, the importance of mindset and the opportunities the automotive industry provides for those with ambition and, well, drive. ??

Here’s our conversation with Gary:

Can you tell me a bit about EZ Wins and the story of how it all began? How did you develop the vision for the company?

We have a consulting and training company called JDI Coaching for automotive service departments. One of the things we do when we come into a store is create a scoreboard for advisors and their managers.

Then we’d incentivize that scoreboard with games and fun, and we’d get tremendous results. Sometimes we’d even double their gross profit! So we thought, how can we scale this?

We built software that would do the same and that’s how EZ-Wins was born. The name came because we want to make everybody feel like they are winning.?

Being a service manager or an advisor is a tough gig. It’s a grind and you work long hours dealing with a lot of customers, some happy and some not.?

We wanted to make advisors feel good about what they were doing.?

Plus, when a dealer or service manager gets new software, it creates another layer of complexity. With EZ-Wins, we wanted to take that out. It's all automated, everything runs on its own, and it's designed to serve them rather than give them another task to do.?

Why do you think gamification works so well to solve this problem??

Most managers are able to look at their numbers and see a scoreboard, but the advisor who is on the front lines every day typically doesn’t get a whole lot of feedback.?

That advisor may understand how they stand within their dealership or their small dealer group, but do they know how they stand on a national level?

The gamification brings that to light. We call it the Advisor Grand Prix. Kinda like NASCAR, right? The idea is that we’re taking those numbers and, rather than using it as a club, we’re using it as a carrot. We’re creating fun and excitement and enthusiasm in a positive way to coach them towards success.?

So an advisor might say, “Hey, look at this guy in Iowa. I’m in California, and he’s kicking my butt. That can’t be! Let me figure out what to do about that.”?

We’ve experienced that, rather than having to push training down on them, advisors are asking us how they can get better and move up in the rankings. We’re getting this curiosity we’ve never gotten before. We’ve been pretty blown away by the acceptance of it.

So you found that by focusing on the carrot rather than the stick, people were more likely to take ownership over their own personal growth?

It’s kinda like DraftKings or Fantasy Football, or many of these things that advisors are already doing online. Now, imagine these are the numbers in your drive and you can affect them in a positive way. It makes you want to see where you are in the race!

Before the end of this year, we’re going to launch an annual “Best Advisor in the Country” competition. We’ll have one in every manufacturer category, then have a set of finals just like March Madness. Then, we’ll get down to the top three and crown a champion based on that.?

We’re pretty excited about that because it will raise national awareness for what we’re doing. You see a top chef show on TV every five minutes, but we have these unsung heroes, these service advisors and automotive technicians who are behind the scenes providing a vital service for the country, for the people.?

I’d like to use the platform as a way to create a national awareness around this job. We’re championing these jobs in our country in a way they haven’t been before.?

What have you found to be the most rewarding part of doing this?

I grew up in a poor neighborhood in a relatively lower middle class community. I didn’t have a whole lot going for me, and didn’t feel like I was going to amount to much. The car business was where I found a home. If I worked hard and hustled and dedicated myself, I could make a living.?

I bought a home, raised a family and put two kids through college. Now my son’s 27, my daughter’s 28, they are both high-functioning adults and I couldn’t be more proud of what’s happened.?

So, I want to give back to this industry that’s given so much to me. Get the younger generation excited about coming to work every day.

We have one dealership that’s up $50,000 and we have another that’s up over $100,000. They’re getting more revenue, the advisors are performing better and it’s a win-win-win.?

One of the advisors in Indiana just bought a huge new home and he’s got two young kids and it reminds me of that time in the beginning. I see that and I feel like I’m taking a small part in helping him to achieve those things.?

That’s what keeps me going and gives me that motivation, and is quite honestly the most rewarding part.?

It must feel great to see someone using the motivation that the platform gives them to exceed even what they might’ve thought possible for themselves.?

Yeah, it does! We had an advisor who was going on vacation and we challenged him to do in three weeks what he would normally do in four. He did it, and he pushed past what he even believed was possible at the time.?

What we’ve found is that it’s really about their belief in themselves. When our advisors get a small win, it puts wind in their sales and they think, “I can do this!” They come home feeling like a conquering hero. We want to light that candle as soon as possible.?

Through EZ-Wins, that’s how we’re going to do it on a national, if not global scale. We want to affect the world.?

What trends have you noticed in the industry in the last few years and how have they changed your approach to things? And how do you see the industry evolving over the next few years?

One big trend we’ve seen over the past few years is that we used to treat the car as a secondary aspect of the interaction, and focus on dealing with the person.?

What we’re finding now is that customers really want a combination of the two. They don’t want chit chat until you deal with what their concerns are and meet their needs. During our training, we incentivize advisors not to lose sight of the fact that they’re there for a purpose.?

Looking towards the future, one of the unknown variables is going to be this focus on electric vehicles. Now, there’s been a fair amount of battery recalls and service work needed on these cars, so it hasn’t yet cut down the workload.?

But my prediction is that the amount of maintenance necessary is going to go down. But of course, the future is not written. We’ll keep an eye on it so we can make a shift towards the needs of electric vehicles and really start to drill into that.?

And finally - just for fun - what would be your dream road trip?

A couple of years ago, my wife and I drove from San Francisco to St. Augustine, Florida. We were living in Kansas City at the time and we bought a car in San Francisco, then we drove to Kansas City and then to Florida to meet up with my relatives for Thanksgiving.?

We stayed in towns that I never would have seen otherwise and it was a pretty cool experience. It was my dream road trip to go coast to coast and to see all those little towns.?

You can learn more about EZ-Wins on their website, or you can contact them here for more info.?

Canada to Add 100% Surtax on Chinese EVs

Chinese EVs are on the rise. They’re affordable, they’re decent quality, and they’re starting to gain traction around the world.?

But Canada’s not rolling out the welcome mat. Instead, they’re throwing up a 100% surtax that could make these vehicles out of reach for many Canadians, which will come into effect on October 1, 2024. Plus, this will be on top of the 6.1% import tariff that already exists.?

Why? It’s all about protecting Canada’s homegrown auto industry from a flood of cheaper imports from China, which is quickly becoming a big player in the EV market.

The Biden administration already did this in the USA, so it’s no surprise that the Canadian government was quick to match America’s tariffs.?

Here’s what’s going on:

• Protecting the local industry: Canada wants to shield its own automakers and boost domestic EV production. This surtax sends a clear message—support local or pay the price. But it’s a double-edged sword: while it protects jobs and investments at home, it could also limit options and keep prices high for Canadian consumers.
• The political angle: This move isn’t just about dollars and cents. It’s also a response to the growing tension between Western countries and China over trade and market dominance. Canada’s surtax is a way of pushing back against China’s aggressive expansion in the global auto industry.

What does this mean for North American EV buyers?

• Fewer choices, higher prices: If you were eyeing a budget-friendly Chinese EV, you might need to rethink that plan. With the surtax, those once-affordable options could now come with a hefty price tag.
• Homegrown EVs are needed more than ever. At the moment, Tesla’s Model Y and Model 3 are both built in Shanghai and a 100% tariff would make them no longer economical to import. Resourcing supply from Texas or California would be necessary to maintain volume.?

(Source)(Source)(Source)

Snippets

Helpful Resource: On the latest episode of Diversity in Automotive, Executive Director of the Ford Minority Dealers Association A.V. Fleming talks about why breaking into leadership roles in the automotive industry is more challenging for women, especially black women, and what we can do to break down these cultural and structural barriers and improve access to opportunities.?

Need to Drain Your Oil Filter? Here’s the easy way to do it at home, without even getting your hands dirty.?

Bring Out Your Dead! The Autopian warns of a nightmare for BMW i3 owners: the “Black Death.” A failing air-conditioning compressor can send metal shavings into the high-voltage system, instantly killing the car with no warning. It’s rare but catastrophic—one minute you’re cruising, the next, your i3 is toast with a massive repair bill.

Fancy Tech? No Thanks. While everyone loves a new car smell, a recent study from JD Power shows car owners apparently hate the high-tech features in their rides, such as facial recognition, and fingerprint scanners. For example, not only do car owners say that interior gesture controls are problematic (causing 43.4 problems per 100 vehicles), 21% of drivers say they are not necessary and pretty useless.?

The Tragic Saga of Cazoo. Wheeler Dealer podcast host Mike Brewer, EV Experts co-founder Estelle Miller and Vines BMW boss Sean Kelly discuss why online-only second hand car seller Cazoo collapsed - and what we can learn from the cautionary tale.?

How Can Car Dealerships Use Data to Map Out and Improve the Customer Journey?

Data is your secret weapon for upping the game at your dealership and making the car-buying experience smoother and more personalized.?

Bring Your Data Together

Got customer info scattered all over the place? That’s a recipe for chaos. Pull it all into one system so you can see everything in one spot—what they’ve bought, what they’re interested in, how they like to communicate. This way, you can hit them with the right message at the right time.

Map the Customer Journey

Think of your customer’s experience as a journey—from checking out your website to driving off the lot. Map it out to spot the key moments where you can make things better. Fix the pain points, and you’ll keep them coming back.

Get Personal with Your Messaging

No more one-size-fits-all emails. Use your data to get personal. Know their name, their favorite car features, and when they’re due for a service. Send them targeted offers that make them feel like you’ve got their back. They’ll appreciate it, and you’ll see better results.

Use Analytics to Stay Ahead

Business intelligence tools are like having a crystal ball. They help you understand what customers want and what’s selling. Track what’s hot and adjust your inventory and marketing plans accordingly.

Simplify the Process

Buying a car shouldn’t feel like pulling teeth. Use data to streamline things—offer online financing and trade-in tools, keep pricing transparent, and communicate clearly. Make it easy, and they’ll love you for it.

Keep Improving

The work doesn’t stop once the sale is made. Keep an eye on customer feedback and sales trends, and tweak your approach as needed. This way, you’ll always be in tune with what your customers want.

Bottom Line

Using data to enhance the customer journey isn’t just a nice-to-have; it’s a must in today’s market. By centralizing your data, mapping the journey, getting personal, using BI tools, simplifying the process, and committing to constant improvement, you’ll boost customer satisfaction and loyalty—and that means better business.

Around the Web

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In the last month, four (4!) vehicles in Death Valley National Park have spontaneously burst into flames. ??

Fortunately, the drivers escaped unscathed, but it appears that the heat resiliency of vehicles is falling behind as climate change worsens Death Valley’s already oven-like weather.?

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Ever wonder why public EV chargers almost never work as fast as they promise??

Here’s an explanation of the many reasons why filling up a battery is a bit more complicated than filling up a gas tank.?

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Think you’re a better driver than the average person? So do most people.

Psychological research finds many people are overconfident about their driving abilities, and it’s keeping our roads unsafe.

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Gone in 60 Seconds in real life??

A Dodge Challenger Hellcat was expertly pilfered from a car lot in North Carolina, and the dealership is offering a reward to anyone with information that leads to an arrest.?

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FELINES, FELINES, FELINES! The Calgary Humane society employs cheesy used car salesman techniques to sell older “pre-owned” cats - and it’s pretty effective (and adorable!)