On the latest episode of Inside Automotive, Tom Maoli, President and CEO of Celebrity Motor Car, joins us to unpack the market realities facing dealers in mid-2025. With EV mandates reversing, OEMs scaling back electric vehicle production, and consumers pausing purchases amid high interest rates and global instability, Maoli provided a candid assessment of what’s working—and what isn’t—for dealers today.
"Let's start by saying he did what he said he was going to do.”
Tom Maoli opens the conversation by praising President Donald Trump’s fulfillment of a key campaign promise: reversing California’s electric vehicle (EV) mandates. Maoli called the regulations “crazy” and said their removal will dramatically alter OEM production plans.
While EV sales have risen slightly over the past year, Maoli attributes the uptick largely to aggressive incentives, not consumer enthusiasm. “If I gave you $25,000 off of your car, you’d buy it-whatever it was,” he said, adding that manufacturers like Mercedes are already scaling back EV efforts. He predicted Tesla will benefit most as competition fades.
Turning to his own business, Maoli said retail is steady but softer than earlier in the year, estimating a 5% pullback in recent months. He blamed this on pre-tariff “pull-ahead” buying and general consumer caution around economic uncertainty. Rising interest rates, currently hovering around 7.5%, are one of the biggest deterrents. Maoli believes rates must fall below 5%—ideally 4.75% to 4.99%—to re-stimulate auto and real estate activity.
On the used vehicle front, Maoli said pricing remains elevated, and sourcing inventory is difficult. He noted:
“Prices are up on used cars, but they are harder to get... you go to the auction sites and there's just not quality or quantity of used cars out there.”
Maoli also warned that geopolitical risks, particularly the U.S.’ vulnerability to terrorism, could quickly derail consumer spending. While higher gas prices following conflict in the Middle East may not significantly affect retail behavior, a domestic terror event would “shut down the consumer.”
Looking ahead, he expects autonomous vehicles to first enter fleet use, such as with Uber or taxis, before consumers fully adopt them. Despite all the industry upheaval, Maoli emphasized that service departments remain strong, and the franchise model continues to be the backbone of automotive retail.
