Episode #1377: How much should dealers trust an EV battery score? Why is Kia paying lessees up to $9,900 to keep their EVs? And are AI-generated customer testimonials the next evolution of marketing—or the end of authenticity?

Today’s show is brought to you by our friends at Widewail. who can show you where your dealership stands on issues the FTC is currently scrutinizing. Watch their webinar on the topic at widewail.com/FTC.

Show Notes with links:

• As battery health becomes a bigger factor in used EV valuations, a new Lyteflo study is raising questions about how some battery scores are generated. The study found model-based estimates consistently rated batteries healthier than direct measurements taken from the vehicles themselves.

  • Lyteflo compared battery scores from 150 EVs and found model-based estimates averaged 6.2 points higher than direct measurements from vehicle diagnostic data.

  • The gap grew for 2021 and older models, with model-based scores overstated battery health by an average of 9.3 points.

  • In 92% of vehicles studied, the model-based score came in higher than the direct measurement, with the largest difference reaching 18 points on a 2022 Tesla Model Y.

  • Battery health is increasingly appearing on vehicle detail pages and being used to support appraisal, pricing, merchandising, and customer-facing battery condition claims.

• Kia is offering some EV lessees up to $9,900 to buy their leased vehicle instead of turning it in. The program applies to select EV6, EV9, and Niro EV leases maturing this month and has some dealers asking what it says about today's EV residual values.

  • Eligible Kia EV lessees can receive between $2,800 and $9,900 toward purchasing their leased vehicle, with participating dealers receiving $300 for completing the transaction.

  • Customers are identified directly by Kia Finance America and routed back to their originating dealership to process the buyout.

  • Every customer who buys out their lease is one less off-lease EV returning to auction, where the market would publicly establish its current value.

  • Some dealers see the program as a way to reduce exposure to weak residual values while others view it as a missed opportunity to convert a lease customer into a new-vehicle sale.

  • As dealer Scott Falcone put it: "The fewer transactions that occur that indicate the residual was a train wreck, probably the better off it is for an OEM."

• Brands are increasingly using AI-generated influencers and UGC-style content in marketing campaigns, often without disclosing that the people featured aren't real.

  • The Guardian found examples of brands using AI-generated people in videos and posts designed to resemble authentic customer reviews and recommendations.

  • Consumer group Which? says 70% of people couldn't correctly identify all the real and fake videos shown in recent testing.

  • The rise of AI-generated UGC follows a marketing shift that began several years ago, when brands started paying creators to make content that looked like everyday customer experiences rather than traditional advertisements.

  • Supporters argue the value of UGC has always been its relatability, not necessarily whether the person on screen was a traditional influencer or content creator.

  • Clarissa Mansbridge, former celebrity manager and AI creator: “I’m going to say about 40% to 60% of the content out there from some of the big brands is actually being made through AI, but a lot of the creators are under NDA.”