February 2025 showed mixed signals, with a slight uptick in sales but continued challenges in both new and used vehicle segments. Used car prices demonstrated signs of stabilization; however, inventory constraints remained a pressing issue, with the average days’ supply tightening to 39 days. Economic uncertainties and new trade policies introduced additional risks, particularly with rising tariffs on imported vehicles and components, which could lead to increased production costs and higher prices in the coming months. Consumer confidence and affordability will be key factors in determining the market’s trajectory.
The full impact of these developments will depend on how manufacturers, policymakers, and consumers respond to the evolving landscape. For dealers, staying proactive in inventory management, dynamic pricing, and customer engagement will be essential to navigating market uncertainties and seizing emerging opportunities in 2025.
New Vehicles:
- New vehicle sales volume and last listed price held relatively steady MoM.
- Aging saw a decrease of 8% MoM but increased 5% YoY.
- Last listed price dropped YoY for hybrids and EVS, 6% and 3% respectively, while ICEs saw a 5% increase.
Used Vehicles:
- Used vehicle sales grew slightly by 1% MoM with prices falling by 3% YoY, down 5% for hybrids and ICEs but up 5% for EVs.
- Day supply decreased another 4 days MoM to 39, up 1 day YoY.
- Aged inventory and percent of units sold with a markdown both fell by 2% MoM.
Recommended action steps for upcoming months:
Dealers will need to manage economic pressures, rising inventories, and shifting market dynamics while adapting to a more digital, consumer-centric business environment. Proactive inventory management, competitive pricing strategies, and a focus on customer engagement will be critical to navigating these challenges effectively.