Blog / News

Sales

New Feature: Enhanced Sales Tax Credit Visibility for Trade-Ins

For states that allow sales tax credit on trade-ins, ASN Software now makes it easier for dealers to identify and present this information clearly:

On the Sales Tab, the system will automatically display the sales tax credit amount on the label for Trade-Line 11, so your team can reference it quickly during deal structuring.

On the ASN Purchase Order, you’ll now see a dedicated line titled "Trade Tax Credit"—separating it from other figures and making it easy for dealers and buyers to review and verify.

This enhancement improves transparency around your team's communication efforts regarding tax credit details.

Void Incorrect or Unused VSC Contracts

For dealers subscribed to the ASN Dealer Products Interface, we've added a powerful new tool to help clean up and manage Vehicle Service Contract (VSC) records more efficiently.

If your team sells a VSC plan and completes the paperwork, but later switches providers or selects "No Warranty", you can now void the previously generated VSC contract number, even for:

• Older deals that were later deleted

• Pending deals where the VSC was never finalized

To access this option, simply click the gear icon on the Service Contract tab within the deal screen.

Important: Access to this feature is governed by Security Setting #811 (VSC Settings). Be sure only authorized staff have permissions to use this tool.

Use with Caution: Once a contract is voided using this feature, it cannot be retrieved.

This update gives dealers a cleaner, more accurate record of active VSC contracts, supporting better reporting and helping prevent inconsistent billing by vendors who provide services through this interface.

Contract Screen

• Colorado Dealers: Form updates for Application of Title, DR2395 and Joint Tenacy with Rights of Survivorship, DR2383, and Notice of Emission Non-Compliance, DR2023

• Arizona Dealers: Form updates for Title and Registration Application – Form #96-0236, Power of Attorney – Form #48-1001, Title Transfer Bill of Sale – Form #38-1306 and Bill of Sale – Form #48-2004.
• California Dealers: A new optional form is available titled "Catalytic Converter Marking Rejection Form" to accommodate lenders who require a standalone acknowledgment.

  Please note that ASN already complies with California Vehicle Code 24020 through the following integrated disclosures:

  • Law Form (Line 1D1)

  • Vehicle Disclosure Form

  • Retail Installment Sale Contract – Prior to Sale

  This new form is offered as an added tool for dealers needing to meet specific lender requests or internal compliance standards.

• Trade Authorization for Payoff Form Updated

  Added Per Diem field for more accurate payoff calculations to the Trade Authorization for Payoff form.

Bookkeeping

New Payment Type: "Digital Payment Service"

To help streamline bookkeeping payment posting methods, we've added a new payment type: Digital Payment Service. This category is designed to cover popular peer-to-peer payment platforms such as Zelle, Venmo, PayPal, CashApp, and others.

You can now track these transactions more accurately, keeping digital payments separate from traditional cash, checks, card or ePayments entries.

Bookkeeping – Collection Tab Enhancement

In Bookkeeping, under the Collections tab, when accessing the "5 Days Late" line, you now have two powerful filter options:

• Customers with Insurance Claims

• Customers with CPI Status

This allows your team to take quicker and more targeted actions based on the customer's account situation.

Accounting

In Payroll, under the Wages and Employee Deductions tab, we’ve added a new Excel Export feature. This option is located at the, in green color, top of the list box, allowing you to easily export the data into an Excel file for further review or reporting.

New Feature: Each payroll deduction will now automatically receive a unique invoice number (the payroll "ID"). This enhancement improves clarity and tracking of payroll deduction details in bookkeeping, Write a Check tab.

Setting

Special Commission Settings for Aged Vehicles

Dealers can now automate special commission bonuses for aged inventory using a newly added setting in ASN Software.

In Settings > Sales Defaults, you’ll now find Line 37: Aged Vehi Bonus | Days, where you can:

• Define the number of days after which a vehicle is considered “aged”

• Set the bonus amount to be automatically applied for qualifying vehicles

This enhancement makes it easier to keep calculations consistent and transparent across deals.

Shop

Improved Visibility for Deleted Labor Lines in RO

When service staff delete a labor line before a technician marks it as complete in ASN CRM, the system now exposes the deleted line on the CRM Tech Details for the RO. This added visibility helps your team understand why the total labor hours may appear higher than the sum of visible labor lines.

Reminder: The system does not allow labor lines marked as Completed by the technician to be deleted from the RO in the DMS. This rule remains in place to preserve the integrity of completed work records.

This should strengthens audits for service writers and technicians, while improving accountability & clarity during repair order audits.

Full Customer Details Now Displayed on All In-House Repair Orders

To improve clarity and communication, full customer information now appears on all in-house ROs by default. This change ensures service teams have quick access to key contact and vehicle details at every stage of the repair process.

Improved Customer PayRO Link for Deposit Requests

When requesting a deposit from a service customer, you can now use the "Send Customer PayRO Link" feature with greater flexibility:

Edit the phone number and email address before sending

Add a personalized message to include instructions or context

This update allows service departments to request payments directly from a customer’s contact, such as a family member, friend, or associate, helping streamline deposit and approval collection while enhancing the overall customer experience.

New Features for Customer RO Update Users — Customer Portal & MPI Updates

1. Video Replacement Feature
   You can now replace a walkaround video with a new one, making it easier to keep your content current.

2. Critical Items Displayed First
   Items marked in red are now grouped under a new “Critical Items” section and moved to the top of the MPI. This is the default view your customers will see, replacing the previous PDF format.

3. Payment Button Language Update
   The payment button now reads “Pay Invoice” once the RO is invoiced. While the RO is still in progress, it will display “Pay a Deposit.”

4. New Vehicle Pickup Status
   A new Vehicle Pickup Status has been added above the Tags section in RO screen. Once an RO is invoiced, the shop team can mark the vehicle as “Ready for Pickup” or “Picked Up.” These updates will be visible on the customer portal, and customers will receive a text notification when their vehicle is ready.

5. WIP Filter for Vehicle Pickup Status
   We have added a new filter in the Work In Progress (WIP) screen to help you quickly sort vehicles based on their pickup status.

6. New Reporting Field
   A new custom report field, CustomerROUpdates (Yes/No), will be available to help you track when updates have been sent to customers.

Inventory

Flooring-New Flooring Feature – Cycle Through Unsold Vehicles

We’ve added two blue arrows have been added to the Search Vehicle screen. under the Flooring tab in the Inventory section that allows you to easily cycle through all UNSOLD vehicles.  These arrows work just like those in Edit Inventory, allowing you to quickly move to the next or prior stock without returning to the search list. This makes it easier to review flooring records and vehicle status efficiently.

Reminder Important Notice

• Effective July 2025, JD Power Guide Book pricing will increase by 10%.

  Anyone that has JDP subscription, your monthly subscription fee to $80.

   

Latest System Update

• The latest version is 7.0.18.48 — Make sure your system is up to date so you can take full advantage of the newest features and improvements!

Auto loan delinquencies stopped growing in the first quarter, according to Experian data.

The period also saw banks regain market share after losing ground to captives following the pandemic.

Thirty-day loan delinquencies held about steady at 2%, as did 60-day delinquencies, at about 1%, Experian reported.

Still, both the new- and used-vehicle average loan amounts rose year-over-year, the new by 3% to $41,720 and the used by $90, or less than 1% to $26,144. The new-vehicle average monthly payment also increased, by 1% to $745, while the used-vehicle payment was essentially flat at $521.

The average interest rate fell slightly for both new- and used-vehicle loans, the former to 6.7%, and the latter to 11.9%.

New-vehicle loans’ share of the quarter’s auto financing grew from 41% to 43%, Experian said.

Banks’ share of auto financing grew from 25% to 27%, while captives’ share fell from 31% to 30%, the data provider and consumer credit reporting agency said. Credit unions’ share was essentially flat at about 21%.

“This shift counters many of the trends we observed in the post-pandemic era, where high interest rates and the re-emergence of new inventory allowed captives to push heavy incentives and capture significant market share,” Experian Head of Automotive Financial Insights Melinda Zabritski said in the quarterly report.

Leasing of new vehicles grew from 24% to 25%, partially driven by electric-vehicle transactions, 60% of which were leases. Overall EV transactions made up almost 10% of new-vehicle sales.

Soruce: FIMagzine

New and Used EV Prices

The average transaction price (ATP) for new EVs in May fell to $57,734, marking a 2.3% decline from April and a 1.1% year-over-year decrease. The price gap between EVs and ICE+ vehicles narrowed to $9,644, down from $11,108 the previous month. Meanwhile, EV incentives increased by 19.4% to an average of $8,226, now accounting for 14.2% of ATP, the highest share in the post-2018 modern EV era. These incentives remain at least twice as high as those for ICE+ vehicles, underscoring the continued push to make EVs more accessible.

If you are in the market for a new vehicle, signs suggest that the buyers' market, which thrived in the first half of the year, is coming to an end. 

Due to the uncertainty surrounding President Donald Trump's trade war, dealers have increased incentives to combat consumer sentiment, which has been in the tank since Trump took office. 

Nearly half of American drivers cite car expenses as the reason they can't save any money, and the average American spends about 20% of their monthly income on auto loans, fuel, insurance, and maintenance. 

Most financial experts cap the monthly income you should spend on a vehicle at 15%. According to a MarketWatch Guides survey, about 10% of drivers say they spend 30% of their monthly income on driving, while another 12% said they "found themselves living paycheck to paycheck due to the financial strain of their cars."

So, finding the right car for the right price is the name of the game. According to a new analysis from Bank of America, this year has been good for car buyers. But things are about to take a turn.

Auto prices are climbing as demand dwindles

Car dealers have piled on the incentives in recent months to get customers through their doors.  The plan worked.  Auto sales have climbed sharply in recent months as consumers were motivated by the incentives and the need to buy vehicles before any tariff-related price increases. 

But Bank of America is now saying that the growth it saw in consumer vehicle loan applications has declined from its peak in April, "suggesting that 'buying ahead' has largely run its course."

Bank of America expects lower-income and younger buyers to feel the most pain, as its data shows that median car payments have grown faster than new and used car prices since 2019.  Shockingly, of those households with a monthly car payment, 20% have a payment over $1,000.

Meanwhile, Baby Boomers, Gen X, and older Millennials all saw decreases in the percentage of their members paying more than $2,000 a month for their vehicles in the past few months. Gen Z and younger Millennials saw an increase in members paying over that amount. 

Bank of America also saw an increase in $2,000 a month auto bills among people making less than $50,000 and between $50,00 and $100,000. Meanwhile, that type of spending decreased among people making more than $100,000.

"Bank of America payments data shows that overall median car payments are already more than 30% higher than the 2019 average and have now outpaced both new and used car prices, possibly as there is a push towards more expensive cars," analysts Taylor Bowley and David Tinsley wrote. 

However, the majority of automakers reported reducing incentive spending in May. Dealers like Volkswagen, Mazda, Land Rover, Volvo, and BMW all reduced incentive spending by more than 10%.  Incentives were also notably lower month over month for Stellantis.

Car buyers have much to consider before making that decision

Car buyers must consider several factors before making a purchase. Of course, the vehicle itself is only part of the expense, as it will need insurance, maintenance, and gas to run.

In addition to capping your car payments at about 15% of your monthly take-home, financial experts also recommend shoppers aim for a 20% down payment, a 36 to 48-month loan term, and expenses (including insurance) at between 8% and 10% of your gross monthly income.  Experts also recommend that you know your credit score and loan approval amount in advance and that you shop around with different lenders for the best rate. 

Soruce: TheStreet

New and Used EV Prices

The average transaction price (ATP) for new EVs in May fell to $57,734, marking a 2.3% decline from April and a 1.1% year-over-year decrease. The price gap between EVs and ICE+ vehicles narrowed to $9,644, down from $11,108 the previous month. Meanwhile, EV incentives increased by 19.4% to an average of $8,226, now accounting for 14.2% of ATP, the highest share in the post-2018 modern EV era. These incentives remain at least twice as high as those for ICE+ vehicles, underscoring the continued push to make EVs more accessible.

Among the most affordable options, the Nissan Leaf maintained its position with an ATP of $32,581. Additionally, several models – including the Acura ZDX, Ford Mustang Mach-E, Hyundai Ioniq 6, Kia EV6, Nissan Ariya, Toyota BZ4X, and VW ID.4 – had effective prices under $40,000, calculated by subtracting model-specific average incentives from their ATPs. The Chevrolet Equinox EV stood out by remaining under $40,000 even without incentives, reinforcing its strong value proposition in today’s competitive EV market. As EV adoption accelerates, ensuring a growing supply of affordable models is essential. For many consumers, price remains one of the most main barriers to switching to electric.

The used EV market saw a modest price increase, with the average price rising to $36,053, up 0.9% from the previous month and 2.6% year over year. The price gap between used EVs and ICE+ vehicles remained narrow, staying below $2,000. The Tesla Model 3 was the top-selling used EV in May, averaging $23,160, a 1.6% decrease from April. As the used EV market matures, price trends are often shaped by brand dynamics and shifting consumer priorities around value, range, and long-term ownership costs.

New and Used EV Sales

• New EV sales rose 4.2% month over month in May, reaching 103,435 vehicles and maintaining a 6.9% market share. However, sales were down 10.7% year over year, underscoring industry challenges and the dynamic nature of an emerging market. May estimates suggest Tesla remained the market leader with 46,150 vehicles sold, a 0.6% month-over-month increase, followed by General Motors, Hyundai Motor Group, and Ford. Honda, which launched its first EV in the spring of last year, rounded out the top five.
• The used EV market saw modest growth in May, with sales increasing 1.1% month over month to 36,609 vehicles, maintaining a 2.2% share of the overall used-vehicle market. Year over year, sales surged 32.1%, reflecting sustained momentum. Tesla led with a 49.6% share. The best-selling used EVs last month were the Tesla Model 3, Model Y, Model S, Model X, and Chevrolet Bolt EV, according to Cox estimates. The used EV market continues to be dominated by Tesla-brand products, which still dominate the EV market, but Cox analysts expect that to shift in the coming years.

New And Used EV Days' Supply

• In May, new EV days’ supply rose 8% month over month to 111 days, although it remains 11.6% lower than last year. New EV days’ supply exceeds that of ICE+ models by more than a whole month. Supply levels varied much by brand, reflecting the dynamic nature of the EV market, driven by production shifts, evolving consumer demand, and strategic inventory management. Most automotive brands saw increased EV days’ supply, signaling improved inventory availability.
• The days’ supply of used electric vehicles declined by 3.4% month over month to 40, an 11% year-over-year decline, reaching its lowest level since June 2022. The gap between used EVs and ICE+ vehicles has narrowed to less than five days. As with the new EV market, days’ supply for used EVs varies a lot by make. Tesla recorded the lowest level at 28 days. This tightening supply landscape suggests growing consumer interest in used EVs, signaling a potential shift in demand dynamics that could reshape pricing and remarketing strategies in the months ahead.

Source:  VehicleRemarket

New Look for ASN Software Icon

We’ve updated the ASN Software desktop icon! You’ll now see our new logo in place of the small red car you were used to. Same great software—fresh new look!

Sales

• Book Values by Date
  A new feature has been added just above the Guide Book label (KBB, J.D. Power, or Black Book) in the Book Values screen. You’ll now see the current guide version by default, but you can click on that line to select a specific date for valuation.

  This allows you to generate a book value based on any available historical date from the guide provider, regardless of the vehicle’s purchase or sale date. Great for appraisals, lender requests, or auditing purposes!  This feature is not available for Black Book.

• Buyer Tab – Credit Screen Preferred Bureau source Logic Enhanced
  When running credit from the Buyer tab, the system will now automatically prefer the most recent credit report only if the report includes a valid score, or if it's the only report pulled in the past 30 days. Reports with a Score of Zero are excluded from automatic selection to ensure more accurate evaluations.

• Buyer/Credit Tab: Soft Pull with 700Credit
  

  Buyer/Credit Tab: Soft Pull with 700Credit
  If your dealership is enrolled in the soft pull feature with 700Credit, you’ll now see a checkbox option in the Bureau line under the Run Credit tab. Check this box to run a QuickScreen / PreScreen / Soft Pull, which is perfect for quickly qualifying leads without the cost of a full credit report.

  When your customer is further along in the buying process and you need full credit report details—such as open accounts, collection status, or deeper credit history—you can still proceed with ordering a full credit report to ensure proper qualification.

  This enhancement, already available in ASN CRM, now works directly in your DMS as well.

Contract Screen

• CA Dealers – Updated REG 31 Form
  On the Contract screen, California dealers will now see the updated CA DMV REG 31 form. This revised version meets the latest DMV requirements and is available automatically with your next update.

• OR Dealers – DMV Form Update on Contact Screen
  New individual DMV OD 735-403A forms for Co-Buyer and Co-Signer are now available!
  You’ll find them under the Disclosures category on the Contact screen, and they can be added to your form list as needed.

Inventory

• Inventory – “Off the Street Purchase” Vehicle Payoff Update
  When using the Vehicle Payoff form for Off the Street Purchases, a new input box now appears with the purchase date pre-filled. You can easily update this to reflect your desired payoff date, giving you more control and accuracy during entry.

• DMV Title Info-New Title Follow-Up Alerts
  A new Red Bell alert has been added to the menu for Title Follow-Ups. When your team enters follow-up dates in the Inventory > Title Info tab (starting at Line 32), the system will automatically display only the relevant items due today or earlier, keeping your title work on track.

• Inventory & Sales Tab – Smart Sales Type Memory
  When searching inventory, the system now remembers your selected Sales Type (e.g., Retail, Wholesale, etc.) after you load a unit. Your preference will automatically be reselected on your next search, until you choose a different type. A small change that saves time!

• Inventory Security – Purchasing Vendor Visibility
  A new security setting, #946 – Purchase Vendor, now controls whether a user can view the Purchasing Vendor in Line 23 of the Inventory screen. Additionally, if the vendor is marked as “Hidden Vendor”, users may still be able to add a unit, but “Restricted” will appear in Line 23 when editing.

Bookkeeping

• New Option in Memorized Transactions
  Under Bookkeeping > POs/Invoice tab, the Memorized Transaction button now includes a field, line 4,  for Stock Number. This is intended only for recurring vehicle-related expenses, like monthly depreciation for demo vehicles. Please avoid using it for one-time or unrelated transactions.

Reports

•  Reports – New Data Fields in Credit Log Report
  Under the Custom Reports tab, when using the Credit Log report source, you’ll now find additional fields to help with customer credit analysis:
• Client Income
• Client Preferred Credit Score
• Client Credit Bureau Score

These added insights make it easier to evaluate and compare customer credit profiles.

• Reports – New “Days Dispatched” Field in RO Details
  When using RO Details as your report source under the Custom Reports tab, a new data field called “Days Dispatched” is now available. This field tracks how many days an RO remains open from its dispatch date, giving you valuable insight into average technician turnaround time for reconditioning units.

Shop Module

• Shop Module – New Auto-Save Feature for ROs
  Each user now has the ability to activate Auto-Save: ON or OFF when working in the Shop module. This feature helps ensure your work is automatically saved if you leave the RO before manually saving.

  The Auto-Save toggle is located above the Service Information box, on the same line as the RO#. The system default is OFF, but once a user turns it ON, it stays on for that user until they choose to turn it off again.

  Note: Auto-Save preferences are user-specific — each user must set their own preference.

• In-House RO Enhancement
  When starting or loading an In-House RO, you’ll now see a Deal Status such as (Final Sale) or  “Locked Sale” wording below Line 1 for sold units, along with the customer’s info. This helps your team easily decide whether to post the recon to 51020-Recon Accounts or  5800-Repairs For Locked Sales.

• Part Vendor Now Visible
  In the RO tab, under the Parts screen, when a Part ID is highlighted, the Vendor source now appears just below the part list and cost field. This enhancement helps your shop team quickly see where the part was purchased, without needing to switch screens, making it easier to contact the vendor if needed.

• Shop Module – Auto-Add Labor Lines to All RO Types
  In the RO tab, when adding or editing a labor line in the Labor popup, use Line 9 to select the option to Auto-Add the labor to all Retail, Wholesale, or In-House ROs.
  Once set, that labor line will be added automatically whenever a new RO of the selected type is created—saving your team valuable time!

• CRM-Shop – Improved Photo Upload for Customer Retail ROs
  When adding photos to a new Customer Retail RO, the CRM now uploads one photo at a time, displaying a progress bar beneath each image. This enhancement helps prevent timeouts, especially on slower 4G/5G connections, by avoiding the issues caused by uploading multiple photos simultaneously

• Shop Module – WIP Grid Customization Update
  We’ve added two new optional columns to the WIP (Work In Progress) screen:

  • Tech – displays the technician’s initials
  • Technician – displays the full name

  You can now include either or both in your customized WIP grid to better track who is assigned to each RO.

ASN CRM

• CRM – New Multi-Client Action Feature
  When viewing your Client List, you can now click the caret icon, down arrow to the right of the “Client List” header, and select “Activate Check Box.”

  This adds a check box to the left of each client name and enables a new option called “Check Box Action” (located at the bottom of the filter list, below “Show All Lots”).

  Once activated, you can select multiple clients and perform the same action for all of them at once, saving time when managing bulk updates.

  Note: The checkboxes will automatically deactivate after the first group action is completed.

• CRM & Shop – New Webpage View for MPI

  We’ve added a new webpage view option for MPI (Multi-Point Inspection) forms within the CRM for Shop needs!

  You can still send or view and print the PDF version if preferred, but now there's a cleaner, more mobile-friendly webpage format for easier viewing and sharing.

  New features include:

  • “Copy Public View URL to Clipboard” – great for sharing inspection results with third parties who are not linked directly to the RO or CRM.
  • Integrated with RO Status – when customers click the "Vehicle Inspection" button, they’ll now see this new webpage version, complete with any technician-added photos.

  This enhancement gives your customers a better experience while also providing your team with more flexibility in how you share inspection details.

Highlights

• Reminder – DMV Title Info Changes Are Now Logged
  Any updates made in the DMV Title Information tab are now automatically tracked and displayed in the Change Log report, which you can access from the Inventory screen. This provides better accountability and an audit trail for title-related edits.

• Bookkeeping – Receive Money: Receipt Print Prompt
  When posting a payment for a customer or vendor in the Receive Money screen, you can now see a print receipt prompt immediately after posting—without needing to go back into Payment History.

  To enable this option, make sure your default setting is turned to “Yes.”
  You can change it by going to:
  Settings → Defaults → Bookkeeping Defaults → Line 54.

  This small tweak can help speed up your workflow and ensure receipts are printed right when needed.

Latest System Update

• The latest version is 7.0.18.44 — Make sure your system is up to date so you can take full advantage of the newest features and improvements!

Sales of new electric vehicles dipped in April while used EV deliveries moved in the opposite direction as shoppers looked for deals.

The new-EV market decline wasn’t across the board, as some brands actually experienced significant sales increases, according to Cox Automotive research. The EV growers included General Motors, Nissan and Tesla. 

But overall new-unit sales fell 6% from April and from a year earlier to a little more than 100,000 units as consumers grappled with both affordability and availability, Cox said. It nevertheless noted a slight market share increase to 7%. The average transaction price was accordingly flat at $59,255.

Tesla, which has taken sales hits in various markets, including Europe and California, increased its U.S. market share about four percentage points on the strength of the Model Y, though it stayed under 50%.

GM’s new-EV sales rose two percentage points to a 14% market share.

As new-model sales fell, used-EV volume increased 14% month-over-month and a whopping 61% year-over-year to nearly 38,800 units. The market share rose to 2%, its highest point so far this year. 

The average used-EV transaction price actually fell month-to-month by about 3% to $35,874, though that’s up 4% year-over-year.

Tesla topped used sales, increasing its market share about five percentage points to 47%, Cox said. Chevrolet and Ford followed with 9% and 6% shares.

The two EV segments’ days’ supply also headed in opposite directions based on their sales results, though inventory varied by brand. 

New-EV inventory increased 4% to 99 days, though that’s down 20% year-over-year.

Used supply, meanwhile, was about flat from April and a year earlier to 37 days.

“As used EVs remain an attractive option, inventory will continue to tighten,” Cox said.

Source:  FI Magazine

Sales are rolling for the automotive industry, but auto dealers have a feeling that the good times won't last. 

Over the past few months, tariffs, which normally would hurt an industry like autos that's so reliant on imports, have boosted sales as consumers flocked to dealer lots to get discounts ahead of an expected price jump.  

“Dealers have a front-line view of the U.S. auto market, which appears to be at an inflection point,” said Cox Automotive Chief Economist Jonathan Smoke. “The recent sales pace has been a positive, lifting current market sentiment higher for franchised dealers. But as we’ve said before, 2025 is going to be a roller coaster for this industry, and the market could be a lot more hair-raising in the months ahead.”

Auto dealers' customer traffic index rose to 37 from 33 in Q1 last year. Franchised dealers reported a 10-point increase in in-person visits, the largest increase since the metric was introduced in Q3 2022, according to Cox. 

“People are buying cars because they think tariffs are coming,” one Mazda dealer said.

Profitability also increased, jumping to 39 on the index, the highest in over a year. Franchised dealers led the gains, rising to 52 from 41. Independent dealers improved more modestly to 35 from 32.

But despite these bests, auto dealers are preparing for the worst as auto tariffs take effect. 

Auto dealers have low expectations for the next three months

Every quarter, Cox Automotive sends a survey out to auto dealers to get a temperature of their sentiment.

This quarter, they got responses from 977 dealers, including 496 franchised dealers and 481 independent ones. They were asked whether their sales expectations for the next three months were “strong,” “average,” or “weak.”

These responses were weighted by dealership type and sales volume.

So what did the survey say? 

After two consecutive quarters of rising sentiment, the most recent survey, which concluded on May 5, recorded a double-digit drop to 45 from 58, indicating that more dealers expect weaker conditions over the next three months.

Independent dealers are the most worried, as their index dropped 15 points to 42. Franchised dealers' expectations fell less dramatically to 56 from 61. 

Over half (51%) of dealers mentioned the U.S. economy as their biggest concern. Respondents said it is the top factor holding businesses back, overtaking interest rates, which garnered 42% of the votes. 

“Things are going to be changing in the second half of the year with possible recession and prices soaring on new and used cars,” one Toyota dealer in the West region said.

Economic uncertainty also weighs on consumers who are waiting to make big-ticket purchases. 

“Customers seem to be holding off on major purchases right now. Wallets are tight with the economic uncertainty,” a Nissan dealer in the Northeast said.  

Auto tariffs to increase prices

The 25% tariffs President Donald Trump has imposed affect all imported vehicles not covered by USMCA. Imports from the UK also have a reduced rate after that country negotiated with the president.

New vehicle inventory dropped by 4.7% to 2.49 million at the start of May as sales outpaced reinforcements, according to Cox Automotive data.

U.S. dealerships reported 2.69 million units at the start of April, a 10.5% decrease from a year ago.

Prices are already climbing.

The average new vehicle listing price at the end of April was $48,656, up $774 (1.6%) from $47,882 at the start of the month and up $1,318 (2.8%) from a year ago.

The average transaction price of a new vehicle rose 2.5% in April to $48,699 month to month and 1.1% year to year. 

At the same time that transaction prices are rising, the incentives that dealers use to attract buyers are falling, down to 6.7% of the average transaction price in April from 7% in March.

Source:The Street

Vehicles on U.S. roads keep getting older as Americans hold onto their cars to save money due to post-pandemic price inflation.

The average age of light vehicles rose by two months last year for the second straight year of increases to 12.8 years, according to S&P Global Mobility. That’s a new record, surpassing 2023’s record-busting 12.6 years.

“With the heavy vehicle registration years of 2015 to 2019 moving into the after-market space, there will be stronger opportunity for maintenance and repair as these vehicles roll off warranty,” said S&P Aftermarket Practice Lead at S&P Global Mobility Todd Campau

Broken down by vehicle type, passenger cars’ average age ticked up to 14.5 years, while light trucks’ average rose slightly to 11.9 years.

The driving public has been gravitating toward pickups and less toward passenger cars in recent years, S&P said. Last year, the number of cars fell to fewer than 100 million for the first time since the 1970s, S&P said.

Vehicle registrations exceeded 16 million last year for the first time since 2019, the year before the pandemic hit. Still, the number of vehicles in operation grew 1% to 289 million, with a flat 4.5% scrappage rate, or units taken out of operation. 

The Northern Plains, Northwest and Southern states average vehicle ages exceeded the average. Others, including Washington, D.C., Mississippi and North Dakota, saw vehicle age growth, while Colorado and Hawaii experienced slower age growth.

Purely electric vehicles are seeing average age growth for the first time in a few years, though that average stayed low at 3.7 years, S&P said.  Hybrids’ average, meanwhile, actually fell from 6.9 years to 6.4.

"Consumer preference currently is favoring hybrid and plugin hybrid options over fully battery electric vehicles to a large extent, driving average age to flat or even negative for those propulsion types," Campau said.

Source:Auto Dealer Today Magazine

Higher-risk auto consumers shopped around more for insurance in the first quarter, a sign that insurers may have raised rates on those segments more than others, TransUnion research finds.

Auto insurance shopping has been on the rise over the past year as consumers try to secure better rates amid a trend of premium hikes. Overall shopping around increased 10% year-over-year in the first quarter, compared to 5% among home insurance consumers, the consumer credit reporting agency said.

But for the first time since the fourth quarter of 2021, higher-risk auto consumers were the most active among the shoppers, according to TransUnion, which said the trend may indicate insurers have switched up their strategy.

“Insurers may have returned to traditional practices of focusing rate increases on higher risk segments, rather than across the board,” the company said in its report. “As a result, higher-risk customers are still shopping for lower rates, while mid- and low-risk customers may have seen their rates stabilize.”

Auto insurance rates may have settled for the majority of consumers to historical patterns, “which correlate price sensitivity closely to relative insurance risk,” said Patrick Foy, senior director of strategic planning for TransUnion’s Insurance business.

Still, overall economic volatility could muddy that picture, he said.

“… uncertainty in the cost and availability of parts for vehicle and home repairs could eventually lead to a return of broad-based price increases …” 

Source: AGENT ENTERPRENEUR

Source:  CBT News

We have all seen the celebrations where blindfolded participants swing wildly at piñatas, breaking them open, so the treats tumble to the floor. In Washington, DC, and in some states, it seems like politicians, without blindfolds, are taking turns treating the auto industry like a piñata, until their earnings hit the floor. 

The Inflation Reduction Act, enacted during the Biden administration, had sweeping implications for the industry. With a combination of carrots and sticks, the legislation sent automakers a clear message: The transition to electrification was not optional. Automakers collectively committed more than $200 billion in the U.S. to ramp up production of an electrified portfolio to meet new government targets. 

Companies that aligned their product line-up with consumer demand rather than EPA emission standards faced the prospect of transferring their hard-earned profits to climate-friendly competitors with emissions credits to sell. Tesla booked nearly $3 billion in profits from emission credit sales in 2024, by selling to automakers with a heavy sales mix of trucks and SUVs.

California Governor Gavin Newsom believed the IRA was not aggressive enough and obtained a waiver from the EPA to impose stricter state emissions standards. In addition to California, sixteen states have adopted the California Air Resources Board (CARB) Advanced Clean Car II regulations, mandating that 35% of new-vehicle sales by model year 2026 must be Zero Emission Vehicles (ZEVs), such as battery electric vehicles and hydrogen fuel cell vehicles. The requirement increases over time to 100% ZEV sales by 2035. 

Automakers that fail to meet the requirement may purchase credits from other manufacturers to avoid fines, which can reach up to $20,000 per vehicle. Any shortfall is then added to the target for the following year, potentially leading to a cycle of indefinite fines. The ambitious 35% ZEV target starkly contrasts with the national average of about 8% EV sales, and California’s best-in-the-nation rate of 25%, which has stagnated over the past two years.

Automakers have offered attractive incentives to drive EV adoption and sales gains, albeit at the cost of eye-watering financial losses. Cox Automotive reports that incentives as a percentage of average transaction price (ATP) stand at 7% across the industry but have been near 15% for EVs in recent months. $159 per month lease offers in ZEV states are cheap to the consumer, but not to the car companies.

Many automakers spend over $10,000 per vehicle on EV lease support (plus the $7,500 federal money), only to face future financial setbacks from residual losses when off-lease EVs are sold at auction. Manheim auction data reveals that EVs depreciate almost four times faster than ICE vehicles in the first 3 years.

Ford is the sole manufacturer that smartly breaks out its EV division within its financial statement, and the numbers clearly show the pain of being a politician’s piñata: Over the past three years, the Ford Model e^TM division has reported more than $15 billion in losses, chasing federal and state guidelines. Despite constructing two new EV plants in Kentucky and Tennessee, Ford has announced a strategic shift towards building more hybrids and delaying EV product launches.

Yes, the Democratic Party has challenged the industry by pushing an aggressive green agenda. The Trump administration is now swinging forcefully at the piñata with tariffs – a one-two punch the industry hardly deserves.

Tariffs Prove 'Crushing' and 'Lethal'

Almost 50% of vehicles sold in the United States are imported from strong trading partners, including Canada, Germany, Japan, Mexico, and South Korea. The 25% imported vehicle tariff on April 2 is a crushing blow. In an industry where manufacturers strive to find pennies of cost savings from parts suppliers, a 25% tariff is practically unfathomable. One auto executive told me, “These tariffs are almost lethal, and nobody is safe.”

Automakers cannot save or sell their way out of this tariff problem. A small compact sedan made in Mexico with a $24,000 window sticker generates roughly $2,400 in gross profit for an automaker, but the tariff will cost $6,000. Automakers cannot afford to offset the added cost, despite President Trump’s reported request to CEOs not to pass the cost onto consumers. This extra $6,000, equal to a $125 uptick to a monthly car payment, will not be easily digested by auto shoppers increasingly struggling with affordability.

Should the administration move forward with a tariff on imported auto parts, the situation will become even more dire in May. Last year, the U.S. imported $200 billion in automotive parts from Mexico and over $400 billion from Canada. Car makers will need to radically change their complex supply chains to mitigate the impact of these tariffs – work that will not be easy or timely. I recently saw an example of the complexity of assembling a piston, which required seven production facilities in different states and four border crossings. Imagine the level of exponential complexity, considering a typical vehicle requires 30,000 parts.

Some good news: Current auto factory utilization in the United States stands at only 65%, down from 75-80% before the pandemic, according to the latest data from the Board of Governors of the Federal Reserve System. BMW has announced plans to increase annual production at its South Carolina plant by 80,000 units. Honda is contemplating building 90% of their U.S. sales here. Ford, GM, Nissan, Stellantis, Toyota, and others are all investigating ways to boost domestic production, but increasing vehicle assembly will be much easier than sourcing parts locally.

The White House’s tariff policy may shift by the time you read this, which is also part of the problem. A constantly shifting regulatory landscape is the enemy of a thriving auto industry. Automakers make investments based on 5-10-year horizons, not 2-4-year political cycles.

I hope that more politicians in Washington, DC, and state governments take a moment to recognize the importance of a healthy U.S. auto industry. According to a report from the Alliance for Automotive Innovation, the auto industry supports over 10 million jobs and accounts for $730 billion of annual paychecks. The report also notes that nine additional jobs are created in industries across the economy for every ONE auto manufacturing job. Even Cox Automotive, which employs me and my 25,000 colleagues in the U.S., depends on a healthy, vibrant auto industry.

I can picture the perfect political cartoon: An elephant and a donkey at a backyard BBQ taking turns swinging at the auto industry piñata. The elephant takes a swing by reducing EV incentives while increasing the price of EVs built in Mexico through new tariffs, while the donkey simultaneously pounds on the piñata for failing to achieve ambitious EV sales targets. This is not a cartoon for automakers: It’s their current reality. Our elected officials better start taking a more reasonable and consistent approach to the auto industry, or there will be no treats left for any of us.

Source:  Vehicle Remarketing

Carvana Co., an industry pioneer for buying and selling used cars online, announced plans for an auction and reconditioning ‘Megasite’ integration in Colorado Springs. This effort will bring Carvana’s Inspection and Reconditioning Center (IRC) capabilities to its existing ADESA Colorado Springs wholesale auction location while maintaining digital and in-lane auction operations on site. The integration will expand Carvana’s overall production capacity and enhance its offerings for both retail and wholesale customers in the area.

Located in Fountain, ADESA Colorado Springs has served local wholesale auto auction customers for more than 40 years. Spanning approximately 50 acres and over 4,000 parking spaces, the site provides ample infrastructure to support both Carvana IRC operations and ongoing ADESA wholesale auction services. Carvana has already begun hiring new local team members and expects the integration to create approximately 100 new entry level and skilled jobs over time.

Incorporating IRC capabilities at ADESA Colorado Springs increases Carvana’s total reconditioning capacity, which improves selection for all customers. It also establishes an expanded inventory pool in a new metropolitan area, making Carvana’s reconditioning and fulfillment network more efficient and giving local buyers access to more vehicles with faster delivery times. Wholesale customers will continue to enjoy ADESA’s in-lane and online auction functionality and will now benefit from even more robust reconditioning operations on-site.

“After many years serving retail and wholesale customers in the Colorado Springs area, we are thrilled to expand our local team and capabilities,” said Brian Boyd, senior vice president of inventory. “This integration will bring a wider selection of vehicles with quick shipping times to local retail customers, provide a more robust offering for local wholesale customers, and also create new job opportunities for entry level and skilled professionals in the local community.”

ADESA Colorado Springs’s efficient transition to an auction-IRC Megasite will be enabled by the site’s significant existing footprint and infrastructure as well as by its adoption of Carvana’s proprietary CARLI software, which supports efficiency, scalability, and consistency across its IRC network.

Source:  Used Car News

Auto dealerships across the United States could see a jump in customer traffic this week as cost-conscious buyers look to avoid a possible uptick in prices and maintenance costs over the next few years, according to industry analysts.

The growing concern over sticker shock has one cause: President Donald Trump’s 25% tariffs on imported vehicles and parts, which are expected to take effect Thursday. The tariffs will likely impact the cost of cars built in American factories, too, by thousands of dollars. That’s because there is no such thing as an all-American car. All 10.2 million cars built in US factories last year were built with a significant number of imported parts, mainly from Canada and Mexico.

After a surge in car-buying, auto sales can expect to drop while new and used car prices increase, and some models will be eliminated, according to Cox Automotives.

“We have seen this movie before. During COVID, supply became constrained, costs skyrocketed. While the increase in prices this time may be for completely different reasons, it still stands to reason that the market will not bear another significant increase,” Erin Keating, executive analyst at Cox, said Friday in a note.

The cost of a car assembled in North America — such as a Ford, Chrysler, GM or Honda — could increase between $4,000 and $10,000, according to a February estimate from Michigan-based think tank Anderson Economic Group. The price of an electric vehicle, meanwhile, could cost at least $12,000 more.

Miguel Colom, a resident of Bethlehem, Pennsylvania, told CNN that he and his wife plan to buy a Chevy Equinox EV but have felt rushed to make a purchase before May because of the looming tariffs.

“A $12,500 price increase on the vehicle we chose would effectively remove it from consideration, pushing us to make a purchase decision with less financial runway than we had hoped,” he said in an email to CNN. Colom added that he and his wife would be hesitant to buy a new car even if there was a modest price increase.

While one concern has been the price of the cars themselves, the cost of maintenance for older car models has worried some Americans.

Robert Wyatt of New Jersey told CNN he traded in his 9-year-old car, a Mercedes GLE-350, for a new Toyota. He initially planned to buy a car within the next two years but bought it sooner because of Trump’s tariff plans.

“Things start breaking,” he said about his previous vehicle. “I was afraid of that maintenance. With a new vehicle it’s gonna be a couple of years before repairs.”

Sales managers told CNN that they have been fielding more inquiries, though there hasn’t been a dramatic jump in sales just yet. Tom Tatich, the general manager at a Toyota dealership in Marysville, Washington, said customers are uneasy about how car prices will look down the road.

Tatich says high demand and a limited supply have been an ongoing issue at Toyota. He believes the demand will remain consistent once tariffs take effect and says customers have tried to lock in prices for cars yet to arrive.

“There are people wanting to ensure the prices quoted on inbound cars won’t change,” he explained.

Cox Automotive said that the online traffic on both its Kelley Blue Book site and its Autotrader.com site increased by 30% between Wednesday — when the tariffs were announced — and Monday, compared to the same period a year ago. And the web sites that it runs for hundreds of individual dealerships across the country had an average increase of 20% in traffic.

In addition, searches for what are generally thought of as import brands, such at Toyota, Honda, Hyundai, and Volkswagen, had between two to four times as many searches as domestic brands, such as Chevrolet, Ford, Jeep and Dodge. And many of the foreign brand models might be built at US factories, while some of the domestic brand models were being assembled in factories in Canada and Mexico.

A lack of reassurances from Trump has done little to ease uncertainty. On Saturday, Trump told NBC News’ Kristen Welker in a phone interview that he encourages price increases on foreign cars because “if the prices on foreign cars go up, they’re going to buy American cars.”

Fewer cars, higher prices

Automakers are more likely to cut back on production while they wait to see whether Trump’s tariffs will stick, which would then lead to inventory declines. With a lower supply, dealerships will raise their prices in the coming months. There are also industry concerns about a decline in the number of customers.

Trump has repeatedly floated tariff proposals since taking office, with the first slate on Canada and Mexico initially planned for early February — only to be delayed a month into March, and again into early April. He later announced the new 25% tariffs on all car imports and car parts, such as engines and transmissions.

Although Trump has said he won’t delay tariffs again for automakers, he could change his mind before or after tariffs take effect. Automakers tiptoeing around that uncertainty by delaying production and buyers who hold on to their vehicles by taking a wait-and-see approach to tariffs means reduced supply and increased prices.

In Wisconsin, Doug Schoepp, owner of Schoepp Motors, said his dealership has about 500 available cars, which should last two to three months. He told CNN he is unsure whether Trump’s tariff policies will be confirmed Thursday or if the president will loosen up on his promises. If tariffs remain, everyone will pay more, Schoepp added.

“The car business will definitely hurt if the tariffs go in place. If (Trump) sticks to his guns, yeah, new cars could go up as much as 25%. Used cars will go up 10% at minimum,” Schoepp said.

Source:  Auzinea Bacon, CNN

 Update on Tue, Apr 29 2025:

• On Tuesday, President Donald Trump signed an executive order softening some of his automotive tariffs.
• The measures aim to reduce the overall tariff level on vehicle imports that had resulted from separate levies “stacking” on top of one another.
• Vehicles that go through final assembly in the U.S. will be able to qualify for partial reimbursements on parts-related levies for two years.