The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

Used Car Supply Stable, GM Supercharger Access, Home Improvement Recovery 

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It’s Friday again, and it feels like the first time in forever that we’re back in our normal seats. Today, we’re covering Cars Commerce’s latest Industry Insights Report, GM finally getting Supercharger access for its EVs and how home improvement is making a recovery because of the interest rate cut.


Show Notes with links:

  • Yesterday, CARS Commerce released their latest Industry Insights Report including a peek inside their 1st party data. Here are some highlights:
    • Used-car supply is also more stable than its been -- up 2.3% YOY. However, the quality of the used-car inventory still leans older, and average odometer mileage increased 1.5% year over year as fewer late-model vehicles land on dealer lots. 
    • Trade-in values continue to slide, with August 2024 figures dropping below August 2022 numbers.
    • Dealers are holding inventory longer — 53 days on average — as consumers wait for better pricing. 
    • 40% increase in new-car demand YOY, but that is not necessarily translating into a more robust market as we have seen a 38% increase in new-car days live.
    • The common thread running through the market’s most affordable vehicles is alternative propulsion: Each of these models is either a full electric vehicle or offers a PHEV version : Ford Mustang Mach-E, Volkswagen ID.4, Mazda CX-90, Lincoln Corsair, Hyundai Ioniq 5


  • GM’s latest move allows their EV drivers to access Tesla’s robust Supercharger network, a game-changer for those driving Chevy, Cadillac, or GMC models. However, GM customers will need to invest in an adapter to tap into these benefits.
    • GM EV drivers now have access to 17,800 Tesla Superchargers using a GM-approved Tesla adapter which costs $225, unlocking Supercharger compatibility
    • Ford and Rivian offered adapters for free temporarily, creating some friction for GM buyers
    • GM also focuses on flexibility, partnering with various suppliers to avoid reliance on Tesla.
    • Wade Sheffer, VP of GM Energy, said, “Enabling access to even more publicly available fast chargers represents yet another way GM is focused on further improving the customer experience.”


  • Home Depot and Lowe’s are already benefiting from the Fed’s recent rate cut, signaling a potential recovery in the home improvement sector as borrowing becomes more affordable for consumers.
    • Home Depot and Lowe's shares rose following the Fed's half-point rate cut.
    • The housing market is expected to "unfreeze" as borrowing costs drop, boosting sales.
    • Analysts predict a "phased recovery" in home improvement spending, starting small and growing as rates fall.
    • Lowe’s CEO Marvin Ellison emphasized readiness: "Whenever the macro inflection occurs, we just want to be ready to take advantage of it."

Hosts: Paul J Daly and Kyle Mountsier

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Paul J Daly:

Friday, September 20. We made it to Friday already. It's the 20th already. Where's this month gone? Kyle and I are both back in our home studios for the first time in like six years. We're going to talk about used car supplies, superchargers, Home Improvement. Why not home improvement

Kyle Mountsier:

today. Why not home improvement?

Paul J Daly:

We'll get there. Here we go. Last Story, you're in you're in your office. I'm in my I'm telling you what. There's something along but yeah, we're like, hi, bye. I know.

Kyle Mountsier:

I guess everybody has always said to me, like, You guys always travel. And I'm like, nah, nah. We really, really,

Paul J Daly:

it's about to be real true. Yeah, it's about to be real true. I know it we I always tell people it looks like we travel more than we do, because every time we travel, you know about it, yeah, right. But in October, November, it's gonna be, you know, we have more than cars episode shooting the Docu series. If you haven't seen it, by the way, go to more than cars.com and see it. Now it's about to be released on prime, Amazon, Prime Video, and then a lot more people will see it. But for now, you can be the OG go see it at more than cars.com or more than cars dot what's the TV? TV more than cars.tv is this is the spot, or go to YouTube and find it. But yeah, we're going to be anywhere and everywhere in the next eight weeks. We're going to be in Kansas City, Austin, Indianapolis, Atlanta. Where am I missing? I'm missing. I know I'm missing. I don't know. Maybe, maybe Florida, maybe Nashville,

Kyle Mountsier:

Virginia. There's a lot of places. The cool part about that is everybody you know, guess what?

Paul J Daly:

In all those places we named there is a thriving dealership community. That's the coolest part about anywhere in this country, right? It's just why we do what we do. So, you know, we'll tell you more about it. But I think we're just mentally right now, just talking ourselves into it.

Kyle Mountsier:

We're just talking ourselves. We're just we're coaching ourselves into the travel. You know what I mean? Doug.

Paul J Daly:

Doug Classen chimes in the live stream, happy Friday. You'll be everywhere. Man, sounds like a Johnny Cash song. That is we need to make

Kyle Mountsier:

that. I'll take the Johnny Cash song Nashville pride. Here we go. Yeah. Here

Paul J Daly:

we go. We do have a webinar coming up next week, September 25 on Wednesday. So go to asotu com. Just check it out. We're going to be talking. We always have fun on these, and we're both going to be on this one. So, I mean, regardless, we'll certainly be making fun of each other. Brian Ortega on live stream. Noticed it is backwards hat day. Yeah. I

Kyle Mountsier:

just because, you know, apologize, it is a Friday.

Paul J Daly:

It is a Friday. I mean, I, you know, we show up with a backwards hat means like we're already in it. By the time we hit this show, we've already done prep. We've already done 16 things, and we're ready to do 16 more. But, uh, one of those things to talk about the news. So we should probably get into that. Let's get into it. Uh, yesterday, uh, friends of cars commerce released their latest their their August Industry Insights report, including a peek inside their first party data. Which is why this report, I think, is a really great one, because it's it's unique data from actual behaviors. Used Car supply is more stable than it's been this report showing up 2.3% year over year. However, the quality of the used car inventory still leans older, and the average odometer mileage is still up 1.5% year over year, as there are fewer late model vehicles landing on dealer lots. Obviously, I'll talk about that in a second. Trading values are also sliding with August 2024, figures dropping below August 2022, numbers. How about that? Hey, that's

Kyle Mountsier:

a new thing. Haven't seen that in a hot minute?

Paul J Daly:

Nope, uh. Dealers are holding inventory longer 53 days on average, as consumers seem to be waiting and sideline for better pricing, there has been a 40% year over year over year increase in new car demand, but it's not necessarily translating into a more robust market. Have we've seen a 38% increase in new car days live, how long they've been for sale on the site. So here's the common thread running through the market. The most affordable vehicles in the market are all alternate propulsion. Each of the models are either full electric or a partial hybrid or plug in hybrid vehicle. So here they are the most affordable vehicles folks, Volkswagen ID four, Mazda CX 90, Lincoln Corsair and Hyundai IONIQ five

Kyle Mountsier:

years ago. Yeah, that's not a statement that you would hear. But like the whole market has been interested in, how do we make these more more affordable, and all of the OEM, like incentives and merchandising and marketing is toward that effort. So it makes a lot of sense. The the one that is is a little bit dicey for me, is, you know, it's not particularly dealers are holding inventory long longer. It's that they're being forced to almost hold inventory longer because. Because of a disparate, you know, demand, supply, you know supply, demand, pricing, affordability matrix. And you know what, holding cars longer does increase costs, decreases profitability. So we got to figure out how to drive that down as an industry and get us into, you know, a place where we're back into that 30 to 35 holding days on average, because that's where the profitability really comes. You know, it

Paul J Daly:

kind of feels like, like this. This data is kind of making me feel like we're in the industry is in a bit of a sparring match. Not we're getting beat down, right? But it's, it's like a little bit of stick and move. See this, react to that, seeing positive indicators, still seeing some challenges, but regardless, feel like we're moving forward in the way that we do. You know, yeah.

Kyle Mountsier:

And I mean, I'm, I'm hopeful for this, this third quarter, especially with the interest rate drop, there's a good chance you'll see another one before the end of the year. And, you know, yeah, I guess the always dicey part is what's going on with the election and the absolutely focus around that. But you know, if the inventory seems to be there and the interest rates are dropping and you're seeing manufacturers like Tesla offer incentivize your interest rates, you're probably going to see that on the OEM side come October one, so watch out for it.

Paul J Daly:

Speaking of Tesla, segue got him GM. GMs latest move is allowing their EV drivers to access Tesla's robust Supercharger network. This is a game changer for people driving a Chevy Cadillac GMC models. However, GM customers will need to invest in the adapter to tap into the benefits. So as of, I think, this week or yesterday, maybe even EV drivers now, GM drivers now have an access to 17,000 superchargers with it's a GM approved adapter they need to get, which is $225 shortage. Rivian offered adapters for free temporarily when they first made the announcement, like a year ago, creating some friction for GM buyers when they're like, well, GM, you know, charging for them, you know. So GM is also doing this big focus on partnering with other suppliers so they're not fully reliant on the Tesla Model. Wade Scheffer, VP of GM energy, said, quote, enabling access to even more publicly available fast chargers represents yet another way GM is focused on further improving the customer experience.

Kyle Mountsier:

So I got two pieces of this. One, 225, bucks for a change, like this, like probably chump change for an EV driver that's looking for that accessibility. I don't know could be, no, I don't know

Paul J Daly:

not. After the EVs are the cheapest vehicles on the market,

Kyle Mountsier:

you know it? Well, yeah, that's right. I mean, it, it's still shocking to me that they didn't price it at 199, like, what was the profitability matrix that made it? Doesn't make the marketing decision to price it at 225, right? What? But this, it's still funny to me that this is just a reality that we're having to deal with that we haven't, you know, like, this is like the R, and D catching up to the production at this point. I was talking to a buddy this last weekend, and we were just, you know, cars always come up. He's like, imagine me going to the gas station and having to, like, find the right adapter, pull it out, throw it on my car, and then pump gas. Like, that's but think

Paul J Daly:

about it. We goes back to the fact that we're talking about, like, vehicles are more like your phone, your phone, right? And I got this cord. There's already a dongle on that one, right? Like, it's just like crap. I don't have the adapter I need, except for if that happens when you're in the car, like, you don't take it anywhere else. So it is. It's that world where it's, like, is

Kyle Mountsier:

it come up with the like, you know how? Like, if you travel in Europe, and like, you can plug into, like, one plug with the women, yeah,

Paul J Daly:

you imagine that thing, it's, oh, what do we got here from that? This one that, this is so smart. Yes, I know. But I mean, like, GM, the last kind of domino to fall, as far as you know, being able to access this, the Tesla chargers. And, you know, I was in, we only have one, like, honest to goodness, Tesla supercharging station. It's at this big mall here, and there's, you know, like, 20 ports or whatever, right? And so I get to see that one every once in a while. I was just in Florida, uh, last week, or two weeks ago, and so there are a number of Tesla supercharging stations that I passed at wawas and stuff. I haven't once seen a non Tesla in it. And I know it's happening. I know what's happening. You probably see it, but I haven't seen it yet.

Kyle Mountsier:

Well, I will say the two buckies that I've been to near me, which are very similar. It's like the Tesla superchargers, and it's a row of Teslas. So, yeah,

Paul J Daly:

yeah, exactly. I mean, there's just a couple more Teslas on the road than f1 50, couple, two days at this point, couple, but we'll see that'll be changing. Speaking, a couple two tree segway

Kyle Mountsier:

Home Depot and Lowe's are pumped because they are already. Benefiting from the Fed's rate cut, signaling potential recovery in the home improvement sector as borrowing becomes more affordable for customers. So Home Depot and Lowe's shares already rose following the Fed's half point rate cut. The housing market is expected to unfreeze as borrowing costs drop, boosting sales analysts have predicted a phase recovery and home improvement spending starting small and growing as rates fall, when like things like he locks come into play. And, you know, home equity type stuff low. CEO, Marvin Ellison emphasized readiness. Whenever the macro in inflection occurs, we just want to be ready to take advantage of it. And I think this also signals, you know, the potential for the the home buyer to move into the car buyer, right? We know that that's a, that's a trend, right? Home by home remodel results in new car purchase very high percentage. Yeah, so there's, there's like a, there's like a, there's a there's a send through a ripple effect. That's not just a direct impact of the rate cut.

Paul J Daly:

You know, I have a few comments on the story. First of all, when we talk about Home Depot and Lowe's in the same story, I immediately have that sense of smell that happens when you walk in one of those stores. I would buy, I would buy a candle that has that smell, by the way, that is one of the best smells ever when you walk in your it's a great now feels like progress, right? You know what it feels like. It feels

Kyle Mountsier:

like, it feels like, you know, it's that like Saturday morning feeling that you know you're gonna feel great on a Monday because you did something, you know, you

Paul J Daly:

know what, during covid, I used to go to Home Depot with my wife all the time. Oh, right. It was the one place you could walk around, right? And feel like, All right, we're all like, we're okay, we're all okay. Let's just get the let's just get the thing we need. And like, enjoy the

Kyle Mountsier:

home, and we'll make we'll be back here next weekend, right? Absolutely, it

Paul J Daly:

was part of the family vacation plan. But this reminds me of a conversation we had with cars CEO Alex Vetter a couple of years ago at one of Brian passion's events, where we were talking about, like, it's tough, because automotive doesn't really have any indicators it can look at to say, like, what's going on. So with an interest rate cut, though, we weren't talking about interest rate cuts, but interest rate cut, it's interesting to see that as soon as the cut happened, Home Depot and Lowe's stock price went up, because, you know, what's following is people being willing to spend money on homes and like all the indicators, it's pricing it into the market, saying that q3 and q4 a lot of optimism that people are going to start buying homes again, remodeling things, that's people are going to start buying cars, good for

Kyle Mountsier:

four different emails from, like banks that I've had relationships With that I haven't gotten an email from forever about home refinancing or home equity loans yesterday, four different day. Yes, banks, what rates? All like, they were all like, I didn't look at the rates, but it was all like, everybody send an email, get some lending, just because of

Paul J Daly:

the Right, right? It's the mental thing, right? Rates are going down, even though, like, if you look at mortgage rates, I was reading an article on this yesterday, mortgage rates have already priced in the rate cut, correct? So it's, you're not going to see, you're not going to see, like, oh, there has no point lesson but, but it's because the other mentality that's around it. It really is really as well, listen, whatever you're doing today. We hope you're paying attention on the people side of the business, because regardless interest rates up down, inventory up down, the people are the ones that are making decisions. They're going to feel away about what you do and how you do it.

People on this episode

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Kyle Mountsier

Host
Contributor

Paul J Daly

Host