Welcome to another episode of, “The Drive”, with Alan Taylor. Today, he starts with BJ Killeen, an experienced automotive journalist and Voice of Reason, who recently discussed the industry’s evolving dynamics with Alan. He expressed sadness over the loss of influential figures from the 1950s but noted the rise of new talent, like John Force and his daughters in racing. In a significant update, California’s high occupancy vehicle (HOV) lanes will soon restrict around half a million electric vehicles (EVs) from single-occupancy access due to the expiration of a federal law, potentially increasing traffic congestion. Additionally, an online dealership settled a lawsuit for $1 million over issues such as bald tires and faulty brakes, affecting more than 170,000 customers. They may seek compensation through the Federal Trade Commission. Killeen also addressed challenges faced by companies like Fisker, which has struggled with the production of the Fisker Ocean. In response, Rivian has partnered with Chase Bank for a buyback program for Fisker owners, allowing them to sell their cars or receive incentives for new Rivian vehicles. While this is seen as a strategic move, lingering questions about its sustainability remain.



Joining Alan next is Karl Brauer, an automotive industry analyst for Forbes Autos and a juror for the North American Car and Truck of the Year, emphasizes the significance of reliability when purchasing used cars, especially in light of rising prices since the COVID-19 pandemic. His research focuses on used cars aged 1 to 5 years, assessing their potential longevity based on mileage and helping buyers identify economical choices with the longest lifespan. For instance, the Honda Fit stands out with an average list price of $18,336 and an expected remaining lifespan of 11.6 years, leading to an annual cost of around $15183. This information is crucial for understanding the long-term financial commitment associated with owning a vehicle. Other notable mentions in the study include the Volkswagen Passat, Kia Rio 5-door, and Honda Civic, with their respective costs and remaining lifespans indicating varying degrees of value and longevity for buyers. Furthermore, Brauer introduces a discussion on vehicles that have depreciated the most in resale value. Electric cars have notably experienced steep declines, with the Porsche Taycan topping the list after losing $26,000, approximately 26% of its value, within a year. Other significant drops include the BMW 5 Series hybrid and several Tesla models. Overall, the study highlights the importance of considering both price and expected lifespan when evaluating 5-year-old used cars, while also revealing the severe depreciation trends affecting many electric vehicles.



Up next is Brian Moody, Executive Editor of AutoTrader.com and Kelley Blue Book, recently discussed trends in truck leasing and Tesla sales. While the value of Tesla vehicles remains stable, sales are declining, indicating a potential decrease in consumer demand that could affect pricing strategies. In February 2023, Tesla sold 60,325 vehicles, capturing 4.3% of the U.S. market. However, projections for 2024 show sales dropping to 590,000 units and market share decreasing to 3.9%, reflecting shifts in consumer preference. In the realm of green technologies, Porsche’s advancements in E-fuels—synthetic fuels made from renewable hydrogen and atmospheric CO2—were highlighted. These E-fuels enable combustion engines to operate more cleanly and are part of Porsche’s strategy, which aims for over 80% of its global deliveries to be all-electric by 2030, maintaining about 20% with combustion engines. Regarding truck leasing for March, notable options include the 2024 Chevy Colorado at $369 per month with a $3,500 upfront payment, the Silverado 1500 at $439 per month and $4,000 upfront,