June 2025 Dealer Trends

Dealer Trends 2025Hey there, dealers — and welcomeback to Dealer training podcast, the go-to podcast for used motor vehicleprofessionals who want to stay sharp, profitable, and ahead of the curve.I’m your host, Delus Johnson, andtoday we’re diving into the top used car dealer trends shaping our industry inJune 2025. Whether you’re running a small independent lot or managing a largeroperation, these trends can affect how you buy, sell, and scale yourdealership.Let’s get right into it.1. Inventory Sourcing Is Still aChallenge — But the Tools Are SmarterThe auction lanes are still leanin 2025, and dealer competition for quality vehicles remains intense. But thebright side? Inventory sourcing software has stepped up big time.Platforms like discountdealercenter.comnow offer smarter alerts, better VIN intelligence, and predictive analytics. Ifyou’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’rebidding.2. Buy Here Pay Here (BHPH) IsExpanding AgainSubprime borrowers are growing dueto tightening bank lending policies. As interest rates stay high and creditstandards stiffen, Buy Here Pay Here dealers are seeing more walk-ins — andthey’re adjusting their terms accordingly.The key here is compliance andtech. If you're in BHPH, make sure you're using systems that automatedisclosures, collections, and reporting. Regulators are watching BHPH closelyin 2025. And I want every buy here pay here dealer to be aware the loans youcreate are very valuable and investors are purchasing buy here pay here loansat a level that I have never seen, so you can package the loans that youcreated last month into a package and easily sell those loan on the Agoramarket place, discountdealercenter.com will allow you to sell all your buy herepay here loans at top prices, once again that is discountdealercenter.com4. Trade-Ins Are More ImportantThan EverWith wholesale prices stabilizingand retail pricing softening, your margin on trades might be the best marginyou make.If you're not actively askingevery customer for a trade and agessively pursing purchasing vehilcs from folkswho 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-inprogram.5. EVs and Hybrids Are SlowingDown in the Used MarketYou may have seen it on the lot:EVs are sitting longer.Used electric vehicles, especiallyearlier models with shorter range or outdated tech, are starting to depreciatefaster. Dealers should be cautious about EV pricing and only stock models withstrong resale history — like Teslas, Toyota hybrids, or newer Ford EVs.That said, don’t ignore the taxcredits and incentives available for used EV buyers — these can be powerfultools for marketing.6. Floorplan Costs Are Eating IntoMarginsWith interest rates holding steady,floorplan costs continue to squeeze used car dealers. This is especially hardfor smaller lots who rely heavily on credit lines.Smart dealers are shortening theiraverage days in inventory. I always recommend tyring ry to move cars within30–45 days max, and negotiate with your lender for flexible terms whenpossible.7. State-Level Legislation IsChanging FastMany states — including Georgia,New Mexico, Texas, and California — have passed new laws in 2025 that affectdealer operations.Some of these changes impact:Temporary tag issuanceSurety bond requirementsDealer license renewalsAnd even RV sales policiesMake sure you're plugged in to thelatest training content at dealerslicense.com8. Online Sales? Still a Mixed BagSome dealers are crushing it withonline-only platforms. Others are finding it’s more headache than help.The takeaway for June 2025? Hybridselling — online listings that drive in-person sales — is still the winningformula for most independents.Focus on your Google reviews,offer a fast response time online, and make sure every unit has high-qualityphotos, a vehicle history report, and optional financing or warranty offers.Discountdealercenter.com