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