Final Morning Show of 2022, Top 5 All Gas No Brake Moments, Tax Credit Updates, Hiring Getting Easier

December 30, 2022
Rockin into the new year with our last show of this year. We cover some important EV tax credit updates, talk about hiring getting easier, and we give our top 5 ‘all gas no brake’ moments of 2022.
Listen On
  • IRA Tax Credits
  • Starting Jan 1, there will be a first-ever EV tax credit for commercial vehicles from $7500-40k letting small and large businesses take advantage of the incentive
  • Vehicle weight determines credit level under 14k and over 14k lbs
  • Can cover up to 30% of the cost of the vehicle
  • Travis Katz, CEO of General Motors' BrightDrop, said "We're already hearing from customers that they're excited about this," which counts FedEx, Walmart and DHL Express Canada as customers.
  • The $7500 consumer incentive can be used on a lease according to new guidance from the US treasury

  • According to a survey conducted by Vistage Worldwide for The Wall Street Journal in December a higher percentage of small business owners reported that it was easier to hire workers.
  • 25% of the more than 650 entrepreneurs surveyed said it was easier to fill job openings now than at the start of 2022, an increase from 18% in November. 
  • Some small business owners attributed the shift to steps such as raising pay, adding apprenticeship programs, and rewriting job ads, while others reported an increase in applicants as competitors pulled back on hiring or began layoffs
  • Also cited was a slow down in work making workloads more manageable and quality of the overall job better

  • Top 5 All Gas, No Brake Moments 
  • Farley
  • Musk
  • Scout
  • EV Tax Credit Laws
  • California

Paul Daly: 0:23We did it guy while the last show 2022 I can't believe it's been a whole year. Well, we got things, talking about all guests, no break moments tax credit updates, hiring getting easier and whatever else we fall on. People really

Kyle Mountsier: 0:38

want to figure it out is we've done at least 260 podcasts on automotive Tomek this year, but I think it's somewhere in the neighborhood of like 272 75 because we did some Saturday episodes. So we don't know that exactly, but it's pretty nuts. And that's just the morning show. That's just the morning show. Right?

Paul Daly: 1:00

You start adding in auto collabs in the dirt, like it's probably gonna add like another 100

Kyle Mountsier: 1:05

It's unbelievable how many audio video that we've done this year, just the volume of content, what I'm so enamored by is like, yes, on the 260 we've probably had 20 to 30 of them with guests on Steve greenfields been on Brian Kramer, Matt Lasher. Just yesterday, like we've had a few guests there. Yeah, all of the people on auto collabs. And in the dirt and a soda con sessions that we've had the opportunity to hear from have conversations with, like, the learning, just pure, selfishly, that I've been able to have lately from other people and from news stories and like formulating my own thoughts, listening to you understanding other people's opinions, thoughts, feelings, the way that they perceive business in the world. Like, my my personal acquisition of thought, knowledge and leadership and all of that in 365 days is insanely different. Dude, that's podcasting alone,

Paul Daly: 2:06

let's contextualize that in auto dealer terms. The top of funnel is massive, massive, just think about that. That's kind of what we provide, right? Like, we work to give the industry as much top of funnel as we can. And then we try to get other people to distill it on the way down, man, I just think to any of everybody who listened or watched a piece of asoto content, or like to post or showed up at an event, or is on the live stream right now, even though it's the last day or you have selling to do or maybe you're taking some time off with your family. Thank you so much for an amazing, amazing 2022 We are doing everything we can to like, I was gonna say 10x I'm not gonna say

Unknown: 2:44

Don't, don't get don't even do it.

Paul Daly: 2:48

But we are doing everything we can to make 2023 Like an all gas no brake asoto like this is we haven't even been an official company for a year, Kyle, right.

Unknown: 2:57

I know. It's crazy, like things are about to get wild. And we're gonna have a whole bunch of fun and learn a ton. Probably more next year. Like I just, you know, the number of conversations. I'm just so excited. I'm like, I'm gonna learn so much.

Paul Daly: 3:11

I know, there's an element to man where it's just really fun to have, like a thought partner, like running a show on your own. It's fun, and it's just a lot of work. But having a thought partner that where you and I can just like, I feel like we're playing tennis all the time. Right? Oh, yeah. That one? Oh, yeah. Trying to return this one. Right. Yeah. So yeah, we're just absolutely doing that.

Kyle Mountsier: 3:30

It constantly challenging each other within a day and within a daily show, even each in shape. Yeah, it does. It keeps you in shape. There's always movement. It's great. It's

Paul Daly: 3:39

amazing. All right, well, let's get into some stuff. What what do you okay? One of the funny

Unknown: 3:43

ones use cars in a few minutes. If you're listening, watching anything like that, you're gonna want to check it out. Because all things use cars is always good every week, I'm sure I'm sure. Rounding out the year David Long is going to crush it. And if you aren't getting it live, you can always go to clubhouse app and check it out on the replay.

Paul Daly: 4:00

Chris Reeves as you welcome I know that he probably sees you on LinkedIn. So Chris Reeves, our head writer so as you're welcome Paul, we'd be remiss not to mention our team and all this right on you. Chris has put 1000s of words together for the asoto community our team has labored even Nathan's producing the show because Isaac's taking the day off, and the social media posts that you see in the admin stuff and event organization and the content creation. It's a whole lot of work. But it's worth it. And this team cares a lot about you, the viewer, the listener, the members of the automotive community, the hand razor that says I care about this industry. So you see them out there to give them give them a little wink, if you alright, so you're in extravaganza. We've talked about it a few times but I'm telling you is probably one of my favorite pieces of content of all the stuff we just talked about that we've made this year. We're starting to release clips and the whole thing is available you can go to a backslash or forward slash YTE year and extravaganza go to our YouTube channels probably I think the best place to watch it. So you can just search a SOTU on YouTube or go to a so tube, a s o t u dot B E. So tube and just check it out because it's so much fun, great family viewing, you can watch it on your Smart TV. It's all the things. Alright, we got some news to talk about, because we got to get to all things use cars, and Tim gotta go. And then we have our we're going to finish the show up with our top five, all gas, no break moments of the year. So let's talk about tax credits. We've talked about tax credits a lot this year. We're going to be talking about them a lot more next year. But two updates just got like some more guidance came out that we thought important to put in the show because they're super relevant. And actually the first tax credit thing that I'm actually a little excited about, is that right? Kind of like bogged down, but starting January 1 is really good. It's amazing for starting January 1 will be a first ever, Evie tax credit for commercial vehicles. And this credit get this it's anywhere between 7500 which is the same level as the consumer credit all the way up to $40,000. Right. Yeah, large witnesses. Yeah, which

Kyle Mountsier: 6:01

is, you know, the $40,000 is for like, trucks, you know, heavy you know, it's a semi Oh, you know,

Paul Daly: 6:08

I did a little more research, since we put the show notes together have some more tickets to me give it to him. So the vehicle weight is what determines the credit, right in under 14,000 pounds, you should 7500 That's just kind of the straight line tax credit. Once it goes over 14,000 pounds, you're eligible up for the sliding scale, it can be up to 30% of the cost of the vehicle. So that means vehicles up to 120k You could actually get that vehicle for 30% off I think I want to start a business just to acquire those vehicles. Cow Lee right 30% Discount just sit on that sucker for a year. Like Yeah, nobody's somebody's gonna work out. But here's, here's another thing. It's applicable to farm equipment, drilling equipment, so we're talking about like machinery equipment, and that there's never been a credit like that. And so, you know, Travis Travis cat, CEO of General Motors, bread shop, you know, they do a lot of Amazon delivery vans and a bunch of other vans. He says we're already hearing from customers that say they're excited about this. So they make trucks for FedEx, Walmart, DHL, and I was like customers. Oh, they're not talking about their I don't think they're talking about their customer. They're talking about the consumers who are like, Yeah, I want my package delivered in an Eevee

Unknown: 7:18

Oh, that. Yeah. I mean, that makes sense. Yeah, my package delivered, but also like the, you know, the FedEx, the Walmart, the DHL, I mean, think about the money savings and the opportunity to kind of like, tell the story, you know, I mean, even just you look at what Domino's and what Walmart and what the way that they advertise and communicate and, and communicate to drivers communicate to consumers, it just, it like widens the opportunity. I think that this is actually the most logical place for EVs to take and yes and ground quicker, because these people will have access to put in charging charging infrastructure, but on the charging infrastructure, they'll probably support and assist a consumer charging structure, I would imagine that they that that would be a game that they wouldn't want to play in. So I see this as an opportunity for Evie adoption to expand a lot quicker, actually, because of the commercial side.

Paul Daly: 8:08

And you know, the state where you mentioned this the other day, we were talking about the mail trucks going, Evie? Yeah, the type of driving delivery trucks do and just like the best type for battery vehicles, stop, no idling, right, ready to go at an instant. So it's kind of an exciting development. And I mean, we'll see what that does. Now that chip supply is coming back, it's all gonna come down the battery, though, right? The battery, the battery mining ability. And so I think that'll put pressure on that. But hey, it's something and here's another little bit of guidance that came out so that the $7,500 consumer tax credit, can be used on a lease. Now, according to the Treasury Department. So I started thinking about this, I looked and looked and looked to see if I could find a little more specificity. Because does that mean, is this prorated? Or it's like, for instance, if you get a car on a 24 month lease, and the payment is $900 a month? Does that mean you comply the $7,500 of credit toward the lease, meaning that your lease is effectively going to be like $150 a month?

Kyle Mountsier: 9:06

Well, yeah, so you would probably I believe what it is, is it's cap cost reduction. So like historic, what you've done is you've gotten the tax credit, and then you apply it on your taxes instead of adding it as CAP caucus reduction, similar to how rebate or trading would be applied. But now it actually gets to be used at the point of sale instead of just on your taxes. So that's

Paul Daly: 9:26

what you're saying. So are you saying if the vehicle is $50,000 the capitalized cost is all of a sudden 40 to five?

Kyle Mountsier: 9:33

Correct? Yep. Yeah. So then you pay so then you pay your lease, you lease factor on the on the remaining amount back to the

Paul Daly: 9:40

where's the money, where's the money go? That goes to the manufacturer.

Kyle Mountsier: 9:45

So that will go to the dealer. So this is it's similar to how on use cars like the dealer will in 2024 be able to apply it at the point of purchase as a rebate.

Paul Daly: 9:55

Yeah, but the weird thing about that is that when when it's a purchase Right, the equity stays with the customer. But on the race,

Kyle Mountsier: 10:04

but think about a rebate, it's same exact thing on a lease rebate, like on lease cash or anything like that you just applied to cash cap cost reduction, which it still applies to the customer, because it reduces the cap cost, right? So it's a, it's a form of payment. So right, if if you trade that vehicle in quicker, you still have a lower cap cost, which is a lower residual below, there's

Unknown: 10:27

a payoff on a lease similar. There's a purchase. But yeah, it's just like moving that consumer incentive to the point of sale instead of just on your tax returns. Jeez, man, that's gonna be, it's gonna be a thing. It's gonna be a thing. So that's pretty good. That's pretty good updates, right? Everyone's looking for guidance. It just gave a little bit of guidance, and there's still like, you know, some things that need to come out. But yeah,

Kyle Mountsier: 10:48

I mean, the big question for dealers here is like, how do we apply these? Well, on used cars, it's a lot harder, but applying these incentives, you know, getting these incentives back, I mean, it's already hard enough to get OEM incentives back check, Chuck, you know, cross your eyes, you know, cross your t's and dot your i's on all of you already ours. But now getting those already ours and then processing those through state departments and getting that, that money back and not having to worry, you know, you're looking at

Paul Daly: 11:13

a back office goes like this. Oh, yeah. Because I mean,

Kyle Mountsier: 11:17

think about, you've got to verify income on the tax return.

Unknown: 11:22

things when we're talking about the Evie, use tax credit. So if you're in the back office to go in on the layers here, yeah, if you're in the back office, our hearts are with you, anything we can do to support you, you're about to become much more valuable the

Kyle Mountsier: 11:35

Sona type, coffee, whatever you need, like the

Paul Daly: 11:39

dealership, the people that know already know that if you all are there, the whole thing comes to a screeching halt. But even more workplace value going up, you know, so no one's gonna be looking for replacements anytime soon. Speaking of finding a replacement. Segue a little bit of good news about hiring according to a survey conducted by Vistage worldwide for The Wall Street Journal in December, a higher percentage of small business owners report that it has been easier to hire workers in December 25% Of the more than 650 entrepreneurs surveyed said it was easier to fill job openings than at the start of 22 and 20%. Easier than it was in November, some small business owners attributed to shift to the steps that they've taken such as raising pay, or adding like this apprenticeship programs, right like little workplace development, rewriting job ads, right, let's position this position that position a little bit better. And others reported like, hey, with the layoffs being announced, there's just an increase in applicants one, one person in that the article we didn't include in the show notes, said we put this job out earlier in the year and got four applicants and we recently re put it out and we got 100 applicants?

Kyle Mountsier: 12:51

Wow, that's pretty wild. Just to know that there's a lot more people, you know, what, whether or not they've been laid off, there's people searching for replacement in jobs. I mean, shoot, we put out a writer ad a month and a half ago and got over 200 applicants. So you know, people are searching. Yeah, that's for sure. And I do think like, you know, we've talked about this a few times, there's just a shortage of workers and we're going to continue to fight for a short amount of workers. And I would say like anytime you see layoffs coming if you're in a hiring remote, figuring out how to attract those employees is going to go get them the winning strategy here in 2023. Because we're gonna see more layoffs from large tech companies that got to accelerated with their hiring practices.

Paul Daly: 13:35

Yeah, well, speaking of all gasp no break moment. That's the last segment of the Year by the way. Yeah, we just said,

Kyle Mountsier: 13:44

accelerator remember that Paul?

Paul Daly: 13:47

I was trying to be empathetic. All accelerator no break doesn't work. Yeah, it doesn't not because even the break like what do you call that? Whatever they call it, what it slows down without actually applying the brake, EVS messing everything up where they just like, let off the gas and it recharges the motors and the car slows down without hitting the brakes. That's we'll save that for another day. All right, we have a list of five, all gas, no brake moments, or at least categories that we're going to talk about today. But first, I think we're gonna I think the list is probably just an order. I don't know if we put these in. No specific order. Number one, we're going to talk about Jim Farley for a second. Talking about someone who went all in on a model on an idea on a concept on a philosophy on a trajectory and said we're not backing off. Jim Farley, I think needs to be on that list

Kyle Mountsier: 14:35

backed off for one month and that's about it and they're still rolling and whether or not dealers are coming along for the ride. They're doing a thing number two off,

Paul Daly: 14:45

he took the foot off. Okay, go ahead.

Unknown: 14:48

Right so number two, if you don't know Elon Musk has been all gasp no brakes. Doesn't matter whether it's rise SpaceX or or or Tesla. There are always things happening. He's building He's digging holes as big around as a car through underground and just complete sending

Paul Daly: 15:06

people to the space station by in $44 billion companies letting go of government or secrets about collusion and conspiracy outing calling out every federal agency you can imagine. Like the man doesn't have a regulator. No regulator why? Let's keep going. Number three a little more refined than Elon Musk, I would say. But the brands Scout Yeah, big big news. VW jettison jettisoning or maybe reviving the brand scout. And I can't remember his name right now.

Kyle Mountsier: 15:39

It was the CEO. You're gonna

Paul Daly: 15:41

Oh, just Scott, Scott Scott. No. We just met, this has never happened. See, this is why we do notes. This is this. Show Notes from putting it in there. Scott Keogh, a very well respected VW executive moved to be the CEO of Scout brand, and became employee number one as they build this truck brand. That is we'll see. It's not supposed to be attached to the dealer model. We don't know where it's going to be. But they announced it. We were in the elevator with a VW rep. The day the news broke, and we're like, hey, what do you think about the scout thing? And she was like, huh,

Kyle Mountsier: 16:18

exactly. All right, number four, we got to keep moving. We got to get going. We do need tax credit laws. So look, they put those things out. And then we're like, Hey, what did we do? We knew a company called recurrent. They were asking a lot of dealers, how do we how do we structure this? How do we make sure it's fair? What are the what are the guidelines and the practices and the software's and technologies that are necessary to support this? And they are just August? No break? We just talked about it just above. Finally, gen one go finally, in May 2018. California is going to change the whole world because

Paul Daly: 16:53

the last one we have to mention California has just fundamentally going to shift the trajectory of all things physical and natural by the year 2030. And I guess we'll see where that lands, but we got to get over the all things use carbon. Thank you so much for spending the year with us here on the morning show. If you showed up later in the year. We have a whole other year planned for you. We're gonna give it to you every day. Have a great new year. We'll see you next year.

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