Carmax v Carvana Tesla Strategy, New Vehicle Inventory Flex, Is Nepotism So Bad?

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

Tuesday is coming in hot as we discuss the massive motion in used Teslas across the country. We also talk about new car inventory getting back (or close to) “normal” as well as the risks and rewards of nepotism. Yeah, we’ll tell you what it means too.

• Carmax dropped prices on Teslas by 20% and sells a majority of their Tesla inventory in the last 36 hours
  • Kicked off by a major price decrease on new Teslas last week. Specifically the Model Y which received a 20% price reduction in order to be eligible for Federal Tax incentives
  • According to CarDealershipGuy on Twitter,
  • Meanwhile Carvana pricing remains largely unchanged

• New vehicle inventory broke the 1.8 million mark in December which is the first time it was that high since May of 2021
  • Cox put its latest industry wide inventory estimate at 1,803,717, representing a 58-day supply, based on the selling rate from the most recent 30-day period.
  • "New-vehicle supply has risen by almost 500,000 units since the end of September, only three months ago, for a 37% increase. From a year ago, inventory is up 715,000 units or 66%, but the sales pace has improved only 2%," Chesbrough wrote in his monthly report. "If this trend continues — and it seems likely to do so — automakers will be under increased pressure to move the metal with higher incentives."
    
    
• “Is nepotism all that bad?” asks a recent article from retail trade publication, Retail Wire.
  • “The phrase #nepobaby (nepotism baby), steadily trending on social media, calls out and often shames the children of famous actors, sports figures, musicians and other artists whose careers have benefited from their parent’s contacts. In many cases, their talent is questioned amid suspicions their stature is not due to merit.”
  • A Bloomberg article cited in the piece explores the potential benefits of passing a business down generationally
  • As Retail Auto is a huge family industry, we thought we’d talk about the pros and cons a bit

Hosts: Paul J Daly and Kyle Mountsier
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