Shift into Gear (our chat for today)

Hello Auto Lover, Ayrton here.

This week I am going to ask you a favor. If you have enjoyed theGearShift.club, please don’t keep it a secret → share it with your friends so we can grow the community!

In this week's journey through the world of cars, we're talking about:

• The end of Apple's electric car project

• Toyota's Hybrid Strategy

• Financial results and analysis on when leasing an EV

• Culture and tons of other insights

Now, let's start and accelerate into the world of cars.

Auto Buzz (news news)

🍏 No Apple car: they are pulling the plug on its decade-long electric car project, 'Project Titan,' shifting focus to artificial intelligence since there is a global downturn in EV investments

🚗 Waste money on EVs: prioritizing hybrids over Electric Vehicles, Toyota plans to navigate regulatory requirements by purchasing credits rather than investing heavily in EVs

🚙 Ford's Feature Farewell: Ford has decided to retire the automatic parallel parking Active Park Assist, apparently drivers were not using it. It is going to save $2B

🔒 Chinese Cars and Data Security Risks: The U.S. investigates potential national security threats posed by Chinese vehicles focusing on "connected" car technologies and their ability to collect sensitive data. Topic for “On the Road Ahead” today

💹 Meteoric Rise: Toyota shares are in a 52-week high at $246.54, with a staggering 34.2% year-to-date gain. Results are better than the broader automotive sector, driven by consistent earnings surprises and robust fiscal forecasts

Gear Talk (questions answered)

Are car prices going down?

Yes, car prices are going down, especially for used cars. The Manheim Used Vehicle Value Index shows us that used car prices have dipped 14% from what they were in February 2023, and they've even dropped a bit more since January 2024. This means that if you're thinking about getting a used car, you could find one for a nicer price now. But, just a heads-up, new cars are still on the pricey side. On average, they're about $10k more expensive than what they were before all the pandemic craziness began. So, while you might get a deal on a used car, be prepared that new cars haven't gotten any cheaper.

On the Road Ahead (what is coming)

Software-defined vehicles, am I paying for an increased driving range?

Last week we started to chat about Software-defined cars. If you missed the last email, you can still check it here. So, for those who weren't here, Software-defined cars are basically vehicles that get a lot of their features and functions through software, just like how your phone gets new features with updates. Imagine if your car could learn new tricks overnight while it's parked in your driveway!

Now, the news cars could be a double-edged sword for us. On one side, it offers the potential for endless innovation and cool new features. But on the flip side, lead us to pay more for things that used to be standard? Let's dive into three examples:

🔥 BMW Heated Seats Subscription: Remember when BMW made headlines for charging a subscription for heated seats? Well, they decided to backtrack on that plan. The idea of paying monthly for something your car already has didn't sit well with a lot of people. Is it fair to charge for features that are installed and common? Maybe not.

💪 Mercedes Power and Speed: company is offering an upgrade for EV owners who want a bit more oomph. For an extra a month, get a software update that boosts your car's horsepower, making it zip faster from zero to 60. No need to visit the dealership - it's all done over the air. Handy, but ...

🛣️ Tesla Longer Range to Escape: A few years back, Tesla did something amazing: they remotely extended the battery range to help people escape Hurricane. Super cool and helped a lot of people. But it also raised questions: If extra range can be unlocked at any time, why isn't it available all the time?

These are all difficult questions and discussions that we are going to face moving forward. Software-defined cars are bringing a lot of benefits. improved safety features, better efficiency, and even eco-friendly updates. But as we see more features locked behind paywalls, it makes you wonder: are we really in control of our cars?

Want to know more, check the news: BMW, Tesla, Mercedes

In the Driver's Seat (steering your way to a smarter car ownership)

Tesla is Not Your Only Choice: What About Leasing Another EV?

Thinking about making the jump to an electric car but only have eyes for Tesla? Let's chat about why leasing another electric vehicle (EV) could actually be the smarter move, especially when you think about how quickly tech changes and how much a car's value can drop over time.

Here's something to mull over: almost 60% of electric cars are being leased instead of bought outright at U.S. dealerships. This shows a lot of folks are choosing to lease to skip the headache of their car losing value fast. But Tesla? They're playing a different game, with only about 2% of their cars leased. That's the lowest it's been in years.

Leasing is kind of like taking a car on a long test drive. You get to enjoy the newest features without worrying about how much the car will be worth in a few years. Plus, there are some pretty sweet deals and tax breaks for leasing EVs that you don't want to miss out on.

But here's the catch: what's good for us as drivers doesn't always make car companies happy. The whole issue of cars losing value, or depreciation, is a big deal, and now it's the carmakers that have to worry about it. With Tesla and others cutting prices to stay in the game, the value of leased cars might go down, which could mean some tricky financial moves for those companies.

Tesla's not too keen on leasing their cars, probably because they don't want to deal with cars losing value on their end. This means if you're a Tesla fan, you might end up dealing with your car's value dropping. Despite all the talk about Teslas getting more valuable with updates, we haven't really seen that happen yet.

So, if you're feeling the pull toward electric cars, why not look beyond Tesla? Leasing gives you a low-risk way to get into an EV, keeping you clear of worries about your car's value dropping. As the EV world keeps growing, stepping out of the Tesla bubble could open up some cool new options and save you some cash too. How's that for a thought?

Fuel for Thought (curiosities to share)

Car Interest and Search this Week

Every state has a different opinion on the split between the two. Very interesting right?

Tell me, what cars and regions do you want to know about? Say here in this survey.

🔢 BIG number

50% not right!

Chance something might not work right with the cool tech in your car within the first 3 years, from JD Power 2024 study. Overall, the number of cars with problems went up a little, from 12 to 17 out of 100 cars in just one year. This means even the newest cars with fancy tech are having a bit of trouble staying problem-free.

Pit Stop (recommendation for a fun time)

🎥 “Jay Leno's Garage”: it is a series that explores our cultural love affair with cars. Leno interviews celebrities, car enthusiasts, and showcases his own extensive collection, along with exploring the technical aspects of cars. Youtube

📖 “The Art of Racing in the Rain” by Garth Stein: seen through a dog's eyes, shares a simple yet powerful life lesson: life, like racing, isn't just about speed. It's about knowing when to accelerate and when to ease off the pedal. Reading teaches us the art of timing in life and on the track. Goodreads.

🎶 Road Trip Tune: “Mustang Sally” by Wilson Pickett is a soul anthem capturing the essence of freedom and the iconic Ford Mustang. Initially "Mustang Mama" by Mack Rice, Aretha Franklin suggested the memorable rename. This 60s hit is a tribute to open-road adventures

🌞 Bronco Bash: Ford's Off-Roadeo sites offer Bronco owners a dirt thrill on April 8th. Across Texas, Utah, New Hampshire, Nevada, they boost confidence and loyalty. Witness the eclipse and be there when we reveal the new Bronco Raptor Blackout Package.

The end for today

Thank you again for the support and for enjoying this week’s theGearShift. As said in the beginning, this week I have an ask:

Please Share with Friends that Love Cars!

Ayrton