Industry Insights – September 2025

As September 2025 comes to a close, the automotive industry is experiencing both tailwinds and turbulence. For U.S. car dealers, understanding these shifts is critical to staying competitive and adapting sales strategies for the months ahead. Here are the key takeaways every dealer should know:

EV Sales Surge Before Tax Credit Expiration

The biggest story this September was the rush of buyers taking advantage of the $7,500 federal EV tax credit before its expiration at the end of the month. This drove record EV deliveries, with EVs accounting for 12.2% of retail new vehicle sales—up 2.6 percentage points from last year.

Expect October EV demand to cool as the subsidy tailwind disappears. Inventory planning and flexible financing options will be crucial to maintain momentum.

Strong Q3 Sales Performance

• September sales volume: ~1.23 million new vehicles sold.
• SAAR: ~16.2 million, slightly up year-over-year.
• Q3 overall: Solid growth compared to Q3 2024.

Trucks and SUVs continue to dominate, accounting for over 80% of sales. Stocking the right mix remains essential.

Affordability Pressures Intensify

• Average transaction price: ~$45,795 (up ~$1,300 from September 2024).
• Incentives: Low at 6.1% of MSRP.
• Payments: Monthly finance payments are near record highs, with many buyers stretching into 84+ month loans.

Highlighting strong customer loyalty programs, affordable financing programs, certified pre-owned inventory, and trade-in opportunities will help ease customer concerns.

Inventory Conditions Improve

Dealer inventories have risen compared to last year, providing more options for buyers. However, high-demand EVs and redesigned models still face supply constraints.

Use increased inventory as leverage in marketing campaigns, but set customer expectations on EV and hybrid availability.

Building Loyalty to Finish 2025 Strong

With affordability challenges and shifting incentives, customer retention is more important than ever. Implementing a strong, custom-branded loyalty program can help close out 2025 on a high note. By rewarding service visits, referrals, and repeat purchases, dealers can:

• Keep customers coming back for service instead of losing them to independents.
• Increase trade-in opportunities and upgrade cycles.
• Differentiate from competitors who only focus on upfront sales.

Loyalty programs build lasting relationships, providing a steady revenue stream through service retention while positioning your store as the go-to choice when customers are ready for their next vehicle.

Reach out to us at Dealership For Life for a demo today and we’ll show you how we help dealers forge custom-branded loyalty programs backed by warranty products, dealer-branded mobile apps, marketing support, custom retention tools and more!

September was strong, but much of it was artificially boosted by expiring EV credits. The next few months will test how resilient demand really is. Dealers should double down on a strong loyalty program, affordability, inventory mix & creative financing to keep customers engaged.