Dealer Trends 2025
Hey there, dealers — and welcome
back to Dealer training podcast, the go-to podcast for used motor vehicle
professionals who want to stay sharp, profitable, and ahead of the curve.
I’m your host, Delus Johnson, and
today we’re diving into the top used car dealer trends shaping our industry in
June 2025. Whether you’re running a small independent lot or managing a larger
operation, these trends can affect how you buy, sell, and scale your
dealership.
Let’s get right into it.
1. Inventory Sourcing Is Still a
Challenge — But the Tools Are Smarter
The auction lanes are still lean
in 2025, and dealer competition for quality vehicles remains intense. But the
bright side? Inventory sourcing software has stepped up big time.
Platforms like discountdealercenter.com
now offer smarter alerts, better VIN intelligence, and predictive analytics. If
you’re still manually scanning run lists without tech — you’re falling behind.
Use your DMS or third-party tools to optimize what you're paying and how you’re
bidding.
2. Buy Here Pay Here (BHPH) Is
Expanding Again
Subprime borrowers are growing due
to tightening bank lending policies. As interest rates stay high and credit
standards stiffen, Buy Here Pay Here dealers are seeing more walk-ins — and
they’re adjusting their terms accordingly.
The key here is compliance and
tech. If you're in BHPH, make sure you're using systems that automate
disclosures, collections, and reporting. Regulators are watching BHPH closely
in 2025. And I want every buy here pay here dealer to be aware the loans you
create are very valuable and investors are purchasing buy here pay here loans
at a level that I have never seen, so you can package the loans that you
created last month into a package and easily sell those loan on the Agora
market place, discountdealercenter.com will allow you to sell all your buy here
pay here loans at top prices, once again that is discountdealercenter.com
4. Trade-Ins Are More Important
Than Ever
With wholesale prices stabilizing
and retail pricing softening, your margin on trades might be the best margin
you make.
If you're not actively asking
every customer for a trade and agessively pursing purchasing vehilcs from folks
who don’t trade — you're missing a key opportunity. Use online appraisal tools,
promote trade bonuses, and get creative with how you market your trade-in
program.
5. EVs and Hybrids Are Slowing
Down in the Used Market
You may have seen it on the lot:
EVs are sitting longer.
Used electric vehicles, especially
earlier models with shorter range or outdated tech, are starting to depreciate
faster. Dealers should be cautious about EV pricing and only stock models with
strong resale history — like Teslas, Toyota hybrids, or newer Ford EVs.
That said, don’t ignore the tax
credits and incentives available for used EV buyers — these can be powerful
tools for marketing.
6. Floorplan Costs Are Eating Into
Margins
With interest rates holding steady,
floorplan costs continue to squeeze used car dealers. This is especially hard
for smaller lots who rely heavily on credit lines.
Smart dealers are shortening their
average days in inventory. I always recommend tyring ry to move cars within
30–45 days max, and negotiate with your lender for flexible terms when
possible.
7. State-Level Legislation Is
Changing Fast
Many states — including Georgia,
New Mexico, Texas, and California — have passed new laws in 2025 that affect
dealer operations.
Some of these changes impact:
Temporary tag issuance
Surety bond requirements
Dealer license renewals
And even RV sales policies
Make sure you're plugged in to the
latest training content at dealerslicense.com
8. Online Sales? Still a Mixed Bag
Some dealers are crushing it with
online-only platforms. Others are finding it’s more headache than help.
The takeaway for June 2025? Hybrid
selling — online listings that drive in-person sales — is still the winning
formula for most independents.
Focus on your Google reviews,
offer a fast response time online, and make sure every unit has high-quality
photos, a vehicle history report, and optional financing or warranty offers.
Discountdealercenter.com
