New Car
Used Car
Q2 2025 New Car Insights
Read what we learned during Q2 below:
Insight: Sales declined steadily: May: -1.4% from April and June: -6.25% from May. This shows signs of weakening consumer demand and a seasonal slowdown.
Action: Introduce limited-time offers, loyalty incentives, or financing deals. Daily retail sales dropped from May to June, indicating a need to re-engage buyers.
Insight: ATP increased slightly over the quarter reflecting stable pricing power, despite falling sales.
Action: Consider bundling value-added services (e.g., maintenance packages) instead of raising prices. With transaction prices increasing slightly, higher prices are negatively correlated with dealer profit, suggesting diminishing returns.
Insight: Days’ supply rose sharply from 66 to 82 days indicating slower turnover and potential overstocking.
Action: Focus on moving aged inventory with incentives and promotions, and use any imbalance between your dealer days supply and Market Days Supply in vehicle models/trimlines to shape allocations.
Insight: While holding costs remained stable, longer inventory cycles increase cumulative cost exposure.
Action: Prioritize moving older inventory through targeted campaigns.
Insight: Profit per vehicle dropped, suggesting margin compression possibly due to incentives or rising costs.
Action: Reassess pricing strategies and cost structures to move vehicles faster and maintain profitability.
Q2 2025 Used Car Insights
Read what we learned during Q2 below:
Insight: Total vehicles sold decreased steadily from April (1.57M) to June (1.46M), suggesting a potential cooling in consumer demand. June’s sales represented a 7% drop from April and a 4.6% decrease from May. Analysts expected a cooling period given the pull-ahead, pre-tariff sales earlier in the year.
Action: Increase efforts to engage and re-engage buyers who opted not to trade-in or purchase a vehicle. Look for opportunities—promotions, limited time offers—to stimulate demand.
Insight: Days’ supply increased each month (from 41 to 45 days), indicating slower turnover or growing inventory on dealer lots.
Action: Accelerate your efforts to move aged, distressed units and ensure your inventory acquisition rate aligns to your rolling 30-day total of retail sales.
Insight: Average listing prices remained remarkably stable, fluctuating by less than $100 across the three months—showing price consistency in the market.
Action: Watch for retail price depreciation. Despite retail pricing consistency, depreciation remains a factor and June declines in wholesale values could signal softening of retail pricing in the third quarter.
Insight: Trade-in equity rose slightly in June, which may reflect stronger used car values or more competitive trade-in offers.
Action: Look for opportunities to use positive trade-in equity trends to promote vehicle trade-ins and purchases with customers.
Sources:
* Cox Automotive Insights
** J.D. Power
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