The used car market in 2025 isn’t what it was a few years ago. Dealers are facing tighter margins, fewer late-model vehicles, and more cautious shoppers. Supply is constrained, consumer confidence is shaky, and new car incentives are putting pressure on used pricing across the board. Despite the noise, demand is still there. It’s just harder to convert.
Here’s where the opportunity lies: for dealers who stay consistent, sharpen their acquisition game, and double down on messaging, there’s still ground to gain. Strategy matters more than ever. The basics need to be dialed in. That includes merchandising, pricing, retargeting, and clear value communication at every touchpoint.
The Pressure Points
Inventory is tight, especially for vehicles under $15K. High loan rates, now averaging 13%, are stretching consumer budgets. Shoppers are holding onto their vehicles longer, spending more time in research, and expecting clarity before they walk into your showroom or click to build their deal.
Certified Pre-Owned sales are facing a headwind. With fewer 2020 to 2021 models returning from lease, the pool of CPO-eligible inventory is smaller. OEMs like Toyota are adapting by certifying older, higher-mileage models. That flexibility may prove critical.
Meanwhile, new car offers with low APR financing are luring budget-conscious buyers back to the new side of the lot. This shift adds even more pressure to pricing and conversion on used inventory.
What’s Working for Dealers Right Now
1. Own the Trade Conversation
Acquisition is the most controllable lever. Dealers seeing success are proactively sourcing trades from service lanes, CRM lists, paid search, and first-party audience retargeting. Campaigns that emphasize easy appraisals, quick offers, and above-market trade values are pulling in both leads and cars.
Use NitroLeads or site pop-ups to capture in-the-moment shopper intent. Offer bold incentives like “$500 Over KBB Value” or “No Payments for 90 Days.” Drive traffic to a landing page built for trade-in conversion, not just generic inventory browsing. And make sure your CRM process is tight. If someone requests a value, they should be hearing from your team immediately.
2. Pricing Transparency Wins
Shoppers want payment details up front. That includes trade-in value, estimated monthly cost, and a real out-the-door number. Dealers who show these clearly are building trust and setting the stage for smoother closes.
Don’t hide your payment builder behind a form. Let shoppers build their deal at their own pace and return when they’re ready. Ensure your in-store sales team understands how those payment estimates are generated, so they can validate—not contradict—what the shopper already saw online.
3. Refine Your “Why Buy” Message
Some dealers are pulling back on ad budgets. That’s your chance to step in with consistent messaging and brand visibility. Use your first-party data to stay in front of engaged shoppers and highlight what sets your dealership apart.
Whether it’s concierge service, online buying options, lifetime oil changes, or employee pricing, it clears across every channel. The right message at the right moment is what wins business in a competitive market.
4. Use Competitive VIN-Specific Targeting
Insights shared during our latest RVP sync highlighted how effective it is to use competitor-specific inventory data in outreach. Instead of showing a dealer their own aged units, show them which vehicles their neighbor can’t move and why. That same idea applies in your own strategy. VIN-level ad targeting, especially in a tight geographic radius, is a powerful and cost-effective way to win market share from dealers who are slower to react.
5. Sync Your Showroom and Digital Experience
Photos, pricing, comments, and recon timing are all critical steps to create a seamless experience from your website to the showroom. Get vehicles listed online within five days of arriving on your lot. Include 25 or more photos, accurate specs, and meaningful descriptions.
Then, look at your digital campaigns. Are the units you’re promoting online supported by clear messaging and pricing in-store? Can your team quote the same numbers that appear in the ads? That consistency is what keeps shoppers from walking.
Your Next Step
The market may feel uncertain, but the path forward is clear. Dealers who focus on acquisition, messaging, transparency, and execution are best positioned for success. Download the 2025 Used Car, Trade-In & Acquisitions Playbook to see what’s working and how to apply it in your store.
If you’d like help building a custom used car strategy for your store, the team at Stream is ready to connect.