Shoot us a Text.

Episode #1125: Today, we’re talking affordability trends, lead follow-up gaps, and a CEO who worked his way from intern to the top at Target.

• At the halfway mark of 2025, the Dave Cantin Group Market Outlook Report shows the U.S. retail auto market is a mix of high prices, resilient demand, and major structural shifts. Despite headwinds, smart dealers are still in the driver’s seat.
  • Affordability is the top issue, with 52.1% of buyers carrying negative equity and 84-month loans now nearly 20% of all new financing.
  • Consumers are sticking with their preferred segment but trading down in size and trim; value-focused models from brands like Buick and Mazda are gaining traction.
  • 40% of U.S. consumers say they’d buy a Chinese-made vehicle if it was 10% cheaper than other cars sold in the US, and 75% of dealers expect Chinese OEMs on U.S. lots within 12 months.
  • As OEMs take multi-billion-dollar tariff hits, dealers are thriving on a flexible playbook—parts, service, F&I, and used cars—with 61% of dealers expecting record revenue growth this year.
  • “U.S. dealers are proving once again how resilient they are and how sophisticated their customer-focused business models have become,” Dave Cantin Group CEO Dave Cantin said.

• Think the lead is dead after Day 3? Think again. A new Foureyes report analyzing over 8 million leads shows a 30-day close rate of just 16.2%, revealing how fast opportunities fall off — and where smart dealers can still win.
  • 73% of sales happen in the first 3 days, but 1 in 4 still close after that. Close rates drop from 12.4% to 2.3% on days 4–7.
  • Follow-up efforts also plunge after Day 3 — a “coincidence” that’s costing dealers real money.
  • Used vehicles close faster than new, but new car deals stretch further into the 30-day window.
  • Internet leads close slower but still produce late-month wins; leads created in the last week of the month have a 17.3% close rate.

• Target is making headlines as it promotes a true company insider to the top job. Michael Fiddelke, who started in 2003, will become CEO on February 1 — a move that reflects deep institutional knowledge but is sparking debate about the need for outside perspective.
  • Fiddelke joined Target as an intern and worked his way up through roles in merchandising, finance, operations, and HR.
  • He most recently served as COO and previously as CFO, giving him a broad view of the company’s levers.
  • He’ll succeed Brian Cornell, CEO since 2014, who will step into the executive chair role.
• “To be clear, we have work to do to reach our full potential,” Fiddelke said.

0:00 Intro with Paul J Daly and Kyle Mountsier
0:52 2025 Halftime Report on Dealer Reputation Webinar Later Today
1:31 New Auto Collabs episode with Technician Curtis Gardner
1:54 DCG Report Shows Affordability and Ch

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

Get the Daily Push Back email at https://www.asotu.com/

JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/