Auto Industry Insight — October 2025 Edition

Your monthly snapshot of what’s driving dealership profits, pricing trends, and market dynamics.

The Silent Dealership Margin Killer: Inventory Aging

It’s not the interest rates or competition—your real enemy might be sitting right on your lot.

According to vAuto, the average vehicle now sits 45 days before being transferred to another store in hopes of a better market fit.But here’s the kicker: once moved, it typically takes another 30 days to sell.

On paper, it looks like a quick turnaround—but in reality, that’s 75 days of aging inventory quietly eroding gross and tying up capital.

Key Takeaways:

1. Get the car to the right store from day one.

2. Or make the move before the clock runs out.

Every extra week is lost margin you’ll never recover.

Data Source: vAuto — Read the guide on centralized inventory management → | Partner: @vAutoInc

Wholesale Prices Defy Gravity (Again)

Despite expectations of a cooling market, wholesale used vehicle values remain stronger than usual.

The Manheim Used Vehicle Value Index slipped just 0.2% in September vs. August—barely a dip considering seasonal norms.

By Segment:

• Compact Cars: -2%

• Mid-Size Cars: +0.2%

• SUVs: -0.9%

• Pickups: +0.5%

• Luxury: -0.3%

• EVs: +0.8%

Overall, pricing is still above average for this time of year.Keep in mind—local auction conditions vary based on regional supply and demand.

Data Source: Manheim

EV Market Correction Ahead—But Not a Crash

A new J.D. Power E-Vision Intelligence Report suggests that while EV incentives may fade, consumer interest isn’t.

Even without the $7,500 federal tax credit:

• 24% of shoppers say they’re very likely to buy or lease an EV in the next year.

• 35% say they’re somewhat likely.

That’s nearly unchanged from last year. In Germany, EV adoption even rebounded to 16.8% after subsidy cuts.

“EV sales will take a hit, but consumers are still interested in this technology despite the change.”— Brent Gruber, Executive Director, EV Practice at J.D. Power

Data Source: J.D. Power / Brent Gruber via CDG News

Older Used Cars Dominate Sub-$30K Market

If you’re shopping for a used vehicle under $30,000, chances are it’s not a recent model.

45% of all used cars below $30K are now 7 years or older, averaging 114,000 miles.

In the past year:

• 7–10-year-old cars: up 15.6% YoY

• 11+-year-old cars: up 14% YoY

Why? Pandemic-era production cuts shrunk the supply of newer used vehicles, and the much-hyped “off-lease wave” may not move the affordability needle as much as hoped.

Data Source: CarGurus

83% of Dealers Are Missing Out with Bad Google Business Profiles

A new SearchLab Digital study of 2,260 dealerships uncovered a shocking truth: most stores are losing free traffic and sales due to poorly optimized Google Business Profiles (GBPs).

Top-Performing Dealers:

• Show up in 2x more searches

• Average 4,455 ranking keywords

• Save up to $3M annually in ad costs vs. lower-ranked competitors

What Separates Them:

• Consistent customer reviews

• Fully completed categories

• Department-specific profiles

• “Vehicles for Sale” inventory enabled

These are simple fixes that compound over time—the sooner you act, the cheaper it is to catch up.

Data Source: SearchLab Digital —| Partner: @StoneEagle_FI

Final Thoughts

Dealers who win in today’s market aren’t just selling cars—they’re mastering inventory velocity, digital presence, and data-driven decision-making.

Stay informed, move fast, and remember:

Margin doesn’t die in the showroom—it dies in storage