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Episode #1248: Dealer confidence takes a hit as affordability pressures and tighter margins creep into Q4, even as fixed ops and F&I try to hold the line. Meanwhile, Wawa goes all-in on Tesla charging, and the Vegas Sphere model heads to DC.

Show Notes with links:

• Dealer sentiment isn’t what it was in Q3 as affordability pressures, rising rates, and tighter margins took their toll on the Q4 numbers. While conditions remain technically “favorable,” confidence slipped quarter over quarter, with dealers signaling tougher days ahead despite strength in fixed ops and F&I.
  • Dealers rated current performance at 62.3, down 5 points from Q3 and the lowest of any industry segment, citing consumer affordability as the biggest drag.
  • Rising interest rates and payment-driven shoppers are shrinking showroom traffic and compressing grosses as price transparency intensifies competition.
  • Fixed ops and F&I remain bright spots, though confidence there also dipped compared to Q3 as financing conditions worsened.
  • Used-vehicle operations grew more challenging, with quality—not quantity—becoming the main inventory issue after years of tight supply.

• Wawa is slapping its logo on Tesla Superchargers. The popular convenience store giant has launched its first self-branded Tesla Supercharger site, signaling a deeper push into EV infrastructure.
  • The first Wawa-owned, Wawa-branded Supercharger site is now live in Alachua, Florida, featuring 16 ultra-fast 325 kW stalls.
  • The site operates under Tesla’s new Supercharger for Business program, where Tesla installs and manages chargers while Wawa controls pricing.
  • Charging is set at $0.37 per kWh, and Wawa hasn’t disclosed how many more branded sites are planned—but its 1,200+ stores offer big expansion potential.

• The Vegas Sphere is coming to a Nations Capital near you. Sphere Entertainment plans a 6,000-seat “mini-Sphere” in National Harbor, Maryland, bringing its eye-popping screens and immersive tech to the DC area, along with a billion-dollar price tag and big economic promises.
  • The DC-area Sphere will be about one-third the size of Las Vegas, but feature the same massive screen, immersive audio, 4D effects, and haptic seating.
  • Construction is expected to cost over $1 billion, supported by roughly $200 million in state, local, and private incentives—some requiring voter approval.

This episode of the Automotive State of the Union is brought to you by Amazon Autos: Meet customers where they shop: reach high-intent buyers shopping for their next car on the #1 online retailer.

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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