Q3 2025 New Car Insights
Read what we learned during Q3 below:
Insight: Sales peaked in August (54,926) but dropped in September (52,083), signaling a slowdown after summer highs. Seasonal factors or reduced incentives may have contributed to this dip.
Action: Anticipate Q4 trends and adjust strategies for holiday and year-end sales events.
Insight: Prices rose steadily: $48,841 → $49,077 → $50,080 (+2.5%). This indicates strong consumer demand for higher-priced vehicles or richer content and features.
Action: If affordability becomes a barrier, consider introducing targeted promotions or certified pre-owned alternatives.
Insight: Days’ supply increased by 11 days over three months (+15%). This indicates slower inventory turnover and potential demand softening.
Action: Track Days’ Supply alongside Market Days Supply and pricing elasticity to adjust strategies quickly.
Insight: Holding costs dropped by $0.28 over three months (~3.5%).
Action: Despite lower holding costs, rising Days’ Supply (84 days in September) increases risk of depreciation.
Insight: Even with rising Days’ Supply and declining sales volume, profitability per unit is improving—likely due to higher transaction prices or controlled discounting.
Action: With sales softening and supply rising, maintain profitability focus while deploying targeted incentives to move aging inventory.
Q3 2025 Used Car Insights
Read what we learned during Q3 below:
Insight: Strong August performance followed by a sharp drop in September (-130K units) indicates demand softening or inventory mismatch.
Action: Review inventory mix, regional trends, and promotional activity to identify root causes. Assess whether affordability concerns (e.g., rising prices or interest rates) impacted demand.
Insight: Days’ Supply remained stable in July and August but jumped to 46 in September (+7%).
Action: Highlight high-demand vehicles in merchandising and digital ads.
Insight: Small dip in August followed by a rebound in September (+$432 from August).
Action: Identify which segments or trims contributed to the September rise—double down on high-demand configurations.
Insight: Equity rose by $536 over three months (+6.8%).
Action: Use CRM data to identify customers with older vehicles and high equity and prioritize outreach.
Sources:
* Cox Automotive Insights
** J.D. Power
vAuto Quarterly Quick-Takes
Winning Today’s ‘Race to the Customer’ in New and Used Vehicles
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