4 Key Takeaways From Q1 Auto Industry Reports

May. 14, 2025 | |

Lotlinx Executive Chairman Len Short digs beneath the headlines to review a litany of first quarter auto retail and finance reports and compiles them into four key points in his latest contribution to DealerELITE.

Short notes Q1 sales were fueled by new car buyers eager to purchase before new tariffs on vehicles built outside the U.S. affect prices; sales of used vehicles increased by 10% from the prior quarter. But a holistic view reveals “deeper challenges,” Short writes.

“Inventory levels for both new and used vehicles saw increases in carryover units, and aged inventory continues to weigh heavily on dealership profitability. At the same time, pricing trends are shifting, and the once-rapid adoption of electric vehicles (EVs) appears to be slowing. These developments point to a market in transition — one that demands sharper insights and more agile strategies from dealers and manufacturers alike.”

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