Q3 Auto Market Cheat Sheet – The Car Brands Accelerating and Stalling Out in Late 2025 | Alan Haig, President of Haig Partners
About this episode
Alan Haig, President of Haig Partners, discusses the current state of the automotive market, highlighting brands that are thriving and those that are struggling. He notes Hyundai and Kia's impressive profitability, while brands like Nissan and Stellantis face challenges. The conversation also touches on the impact of Carvana's acquisitions and the evolving dealership landscape. Haig emphasizes the importance of fixed operations for dealers and predicts continued demand for dealerships despite market fluctuations. Insights into brand strategies and dealership valuations provide a comprehensive overview of the automotive retail environment.
Carvana
"...if you're Carvana And you want to own the used car space as much as you can"
Carvana is a company that sells used cars online. You can buy a car from them without ever visiting a dealership, and they even have a special way to deliver cars to your home.
Carvana is an online used car retailer that allows customers to buy, sell, and trade vehicles entirely online. They have gained popularity for their unique car vending machine concept and home delivery service.
Audi
"Let's table that for one second. Talk to us about brands... the big news was Audi."
Audi is a car brand from Germany that makes luxury cars. They are known for their stylish designs and advanced technology in their vehicles.
Audi is a German automotive manufacturer known for its luxury vehicles and advanced technology. It is part of the Volkswagen Group and has a reputation for producing high-quality cars with a focus on performance and innovation.
EVs
"...the Volkswagen group as a whole went really really heavy towards EVs globally..."
EVs are cars that run on electricity instead of gasoline. They are better for the environment because they don't produce exhaust fumes.
EVs, or electric vehicles, are cars powered entirely by electricity rather than traditional internal combustion engines (ICE). They are considered more environmentally friendly and are increasingly popular due to advancements in battery technology.
Volkswagen
"...the Volkswagen group as a whole went really really heavy towards EVs globally..."
Volkswagen is a well-known car company from Germany that makes many different types of cars, including the popular Beetle and Golf models.
Volkswagen is a major German automotive manufacturer known for producing a wide range of vehicles, from economical cars to luxury models. It is the parent company of several other brands, including Audi.
ICE vehicles
"...they stopped innovating anything really on the ice side..."
ICE vehicles are cars that run on gasoline or diesel. They have engines that burn fuel to make the car go, which is different from electric cars that use batteries.
ICE vehicles refer to internal combustion engine vehicles, which use gasoline or diesel fuel to power the engine. This technology has been the standard for automobiles for over a century but is being gradually replaced by electric vehicles.
EV market share
"...where the EV market share goes..."
EV market share is how many of the cars sold are electric cars. It helps show how popular electric cars are getting compared to regular cars.
EV market share refers to the percentage of total vehicle sales that are electric vehicles. This metric is important for understanding the growth and acceptance of electric vehicles in the automotive market.
Mercedes
"...compared to their BMW or Mercedes or Lexus competitors is way lower..."
Mercedes is a luxury car brand from Germany known for making high-end vehicles that often include advanced technology and safety features.
Mercedes-Benz is a division of the German company Daimler AG, known for producing luxury vehicles, buses, and trucks. The brand is recognized for its innovation, safety features, and high-quality engineering.
BMW
"...compared to their BMW or Mercedes or Lexus competitors is way lower..."
BMW is another German car brand that makes luxury vehicles. They are famous for their sporty cars that are fun to drive.
BMW, or Bayerische Motoren Werke, is a German luxury vehicle manufacturer known for its performance-oriented cars and motorcycles. The brand emphasizes driving pleasure and has a strong presence in the luxury market.
Lexus
"...compared to their BMW or Mercedes or Lexus competitors is way lower..."
Lexus is a luxury car brand that is part of Toyota. They are known for making reliable and comfortable cars.
Lexus is the luxury vehicle division of the Japanese automaker Toyota. It is known for its high-quality vehicles, reliability, and customer service, often competing with other luxury brands like BMW and Mercedes-Benz.
Porsche Boxster
"...they were talking about giving up models like the Boxster and the Cayman and You know really moving away f..."
Porsche Cayman
"...the Boxster and the Cayman and..."
The Porsche Cayman is a two-door sports car that has a hard top. It shares many features with the Boxster but is designed for a different driving experience.
The Porsche Cayman is a coupe version of the Boxster, offering similar performance characteristics with a fixed roof. It is known for its agility and balance, making it a favorite among driving enthusiasts.
EV
"...because they've bet so much on EV conversely certain brands..."
An EV, or electric vehicle, is a car that runs on electricity instead of gas. They are usually better for the environment because they don't produce exhaust fumes.
EV stands for electric vehicle, which is a type of vehicle that is powered entirely by electricity rather than gasoline or diesel. EVs are known for being environmentally friendly and often have lower operating costs.
hybrid
"...If you want an EV, we'll have that for you If you want to plug in, you know hybrid will have that for you"
A hybrid car uses both a gasoline engine and an electric motor. This helps it save fuel and produce less pollution than a regular car.
A hybrid vehicle combines a traditional internal combustion engine with an electric motor to improve fuel efficiency and reduce emissions. Hybrids can operate on either power source or both simultaneously.
Toyota
"If you want a hybrid will have that for you and if you want a gas motor will have that for you. And they have and they've absolutely killed it in the market since then they're taking share."
Toyota is a car company famous for making reliable cars and being one of the first to create hybrid vehicles, which use both gas and electricity.
Toyota is a leading automotive manufacturer known for its innovative hybrid technology and reliable vehicles. The brand has been a pioneer in the hybrid market with models like the Prius.
Subaru
"Even brands that were growing quite strongly, you know before the pandemic and before the EV thing like Subaru. Subaru just doesn't really have many hybrids yet."
Subaru is a car brand that makes vehicles known for their all-wheel drive, which helps with traction. They are currently working on adding more hybrid options to their lineup.
Subaru is an automotive brand known for its all-wheel-drive vehicles and rugged designs. While they have a loyal customer base, they have been slower to adopt hybrid technology compared to competitors like Toyota.
Kia
"[1027.9s] Gas and they're taking share Hyundai and Kia are gaining share nicely. Yeah"
Kia is another car company from South Korea that makes a variety of vehicles, including electric cars. They are known for their modern designs and good prices.
Kia is also a South Korean automotive manufacturer and a sister company to Hyundai. Kia has been recognized for its stylish designs and value, offering a range of vehicles from compact cars to SUVs, including electric models.
Nissan
"...if you look at Stilanus and Nissan they had a positive..."
Nissan is a car company from Japan that makes many different types of vehicles, including electric cars.
Nissan is a Japanese automotive manufacturer known for producing a wide range of vehicles, including sedans, SUVs, and electric cars like the Nissan Leaf.
Ford F150
"um, and really Relying a lot on the f-150 franchise. So From a dealer's perspective, even if you only made a thousand dollars new vehicle gross on a"
The Ford F-150 is a big truck that many people use for work and everyday driving. It's known for being tough and can carry heavy loads, which is why a lot of people like to buy it.
The Ford F-150 is a full-size pickup truck that has been one of the best-selling vehicles in the United States for decades. Its significance lies in its versatility, performance, and strong reputation for reliability, making it a popular choice for both work and personal use.
Ford Escape
"...even if you only made a thousand dollars new vehicle gross on a Ford Escape, you know, you could still do f and i..."
The Ford Escape is a smaller SUV that's good for everyday driving and family use. It's easier to park and handle than larger trucks.
The Ford Escape is a compact SUV that offers a balance of efficiency and utility. It's designed for families and individuals looking for a versatile vehicle.
F&I
"...you could still do f and i You can still take a trade in you had a you had a product to sell a customer..."
F&I means Finance and Insurance. It's the part of a car dealership that helps you figure out how to pay for the car and offers insurance options.
F&I stands for Finance and Insurance, which refers to the department in a dealership that handles financing options and insurance products for customers purchasing vehicles.
average transaction value
"...an f-150 I think the average transaction value at a Ford source is 57,000..."
Average transaction value is how much people usually spend when they buy a car at a dealership. It shows what kind of cars are popular and how much they cost.
Average transaction value refers to the typical amount of money spent on a vehicle purchase at a dealership. It helps understand market trends and pricing strategies.
Volvo
"You know the nissans and the stalinises and the infinities and the lincoln's and the volvos are really really challenged today..."
Volvo is a car company from Sweden that is famous for making safe and reliable cars. They have been facing some challenges in the market recently.
Volvo is a Swedish automotive manufacturer known for its focus on safety and reliability. The brand produces a range of vehicles, including sedans and SUVs, but has faced challenges in adapting to market demands.
Infiniti
"You know the nissans and the stalinises and the infinities and the lincoln's and the volvos are really really challenged today..."
Infiniti is the luxury brand of Nissan, making high-end cars and SUVs. They have had some difficulties in getting noticed and selling well lately.
Infiniti is the luxury vehicle division of Nissan, offering premium cars and SUVs. The brand aims to compete with other luxury automakers but has struggled with brand recognition and sales in recent years.
Lincoln
"You know the nissans and the stalinises and the infinities and the lincoln's and the volvos are really really challenged today..."
Lincoln is Ford's luxury car brand, making fancy cars and SUVs. They have been having a tough time competing with other luxury brands recently.
Lincoln is the luxury vehicle division of Ford, known for its upscale cars and SUVs. The brand has faced challenges in maintaining its market presence and appeal in a competitive luxury segment.
after sale
"...And so that makes it harder for the factory and the retailer to stay in touch with that customer because for the after sale..."
After sale means the services and help you get after buying a car, like repairs and parts.
After sale refers to the services and support provided to customers after they purchase a vehicle, which can include maintenance, repairs, and parts sales.
selling parts
"...because they make a ton of money of selling parts..."
Selling parts means providing replacement or upgrade pieces for cars, which helps car companies make money.
Selling parts refers to the practice of dealerships and manufacturers providing replacement or upgrade components for vehicles, which is a significant source of revenue.
minimum advertised prices
"Toyota, I believe put in place minimum advertised prices to prevent retailers from selling well below invoice and that had the effect of boosting margins for everybody in the Toyota world..."
Minimum advertised prices are rules that tell stores the lowest price they can show for a product. This helps keep prices fair and protects the brand's image.
Minimum advertised prices (MAP) are pricing policies set by manufacturers that dictate the lowest price at which a retailer can advertise a product. This helps maintain brand value and prevents price wars among retailers.
OEMs
"But if the OEMs can take actions to eliminate or reduce the broker business, that's going to be I think a very positive thing for the retailers in those communities..."
OEM means Original Equipment Manufacturer, which is the company that makes the original parts for cars. When someone talks about OEMs, they are usually talking about car makers like Toyota or Ford.
OEM stands for Original Equipment Manufacturer, referring to companies that produce parts and equipment that may be marketed by another manufacturer. In the automotive context, it typically refers to car manufacturers themselves.
Hyundai Palisade
"...So it's how you ride is pretty much the same as a palisade um"
The Hyundai Palisade is a large SUV that can fit a lot of people and their stuff. It's designed to be comfortable and safe for families, which is why it's often talked about as a good option for those needing more space.
The Hyundai Palisade is a mid-size SUV that offers spacious seating and a range of advanced features, making it a strong contender in the family vehicle market. Its significance comes from its combination of comfort, safety, and value, appealing to those looking for a reliable family hauler.
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