Economics:

  • The economy grew faster than expected in 2025.
  • Inflation kept cooling. The November CPI was around 2.7 percent compared to last year.
  • Stocks stayed strong and kept pushing toward new highs even with a lot of nervousness.

 

Independent inflation read

  • Turflation measures hit about 2 percent on December 30 and are still trending lower into 2026, especially in food, gas, and housing.
  • Rents are easing, which helps the overall inflation picture.

 

What it means for auto dealers

  • If inflation and interest rates keep coming down, payments get easier.
  • When payments get easier, more buyers come back quicker than people expect.
  • That can drive stronger demand for both vehicle repairs and replacement

 

Dealer takeaway

  • Keep inventory tight and clean. Do not chase volume with old units.
  • Hold gross by staying sharp on intelligent acquisition, merchandising and pricing.
  • Make it easy to buy fast process, clear numbers, strong execution in F&I.
  • If the economy keeps improving, the dealers who run the cleanest operation will win more of the upside.

Agile Auto, helping dealers execute today for tomorrow!

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Author: John Ellis

Founder & CEO Agile Auto and The Automotive Advisor Team