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Episode #1208: Today we’re joined by guest host Todd Caputo and break down why car buyers are finally pushing back on pricing and how BMW and Audi are muscling into the booming off-road segment.

Show Notes with links:

• American car buyers are finally tapping the brakes. After years of paying whatever it took to get into a new car, stretched consumers are hitting affordability ceilings and forcing both dealers and OEMs to rethink what demand really looks like heading into 2025.
  • Shoppers are shifting downmarket—buying used, taking longer loans, delaying purchases, and gravitating toward lower-priced models like the Chevy Trax.
  • Industry projections for 2025–26 have softened as tariffs, inflation, and tighter labor markets cool big-ticket spending.
  • Rising days’ supply is prompting deeper discounting while lower-income borrowers fall behind on payments and overall vehicle spending drops YoY.
  • Retailers report weaker new-vehicle margins, though service traffic is climbing as more owners try to stretch aging vehicles.
  • “People are asking, ‘How can I afford this?’” said dealer Robert Peltier. “There are people who are in debt and living paycheck to paycheck.”

• The all-terrain SUV segment is heating up fast as BMW and Audi prepare to challenge icons like Wrangler, Bronco, G-Wagen, and Defender—tapping into a growing niche that’s suddenly not niche at all.
  • The off-road segment is booming: nine core models totaled 371,495 sales through Q3 2025, on pace for a post-pandemic record. Wrangler and Bronco remain the kings.
  • Audi will build its first true off-roader on the upcoming Scout Terra/Traveler platform in South Carolina, offering both full EV and range-extender options.
  • BMW’s G74 aims straight at the G-Wagen and Defender, built on the X5 platform in Greer, SC, with U.S. production helping dodge tariff pressure.
  • Analysts say styling—not specs—will make or break these newcomers; anything too close to G-Wagen territory risks immediate backlash.
  • “Adding a true off-road-capable SUV will attract buyers… but whether that investment pays off is the challenge,” said S&P Global Mobility’s Sam Fiorani Bernard.

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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