11-6-2025 Auto Market Report
Economic Condition
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Consumer Confidence slipped 1.0% in October (expected gain), though September was revised higher.
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Morning Consult sentiment fell 3.4% in October, 3.7% lower YoY.
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Vehicle purchase plans rose month-over-month but remain below last year.
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Financial Outlook:
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The Fed cut rates by 0.25% and will end QT on Dec. 1, easing long-term rate pressure.
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Chair Powell downplayed prospects of another December cut.
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Auto rate increased largely reflect fewer manufacturer incentives, not Fed action.
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Automotive Insights:
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Auto Cost Depreciation was minimal; 3-year-old index steady at 101.2%.
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Non-luxury vehicles remain strong with luxury softening due to affordability.
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Lane efficiency and MMR retention both improved with sales improvement.
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Agile Auto’s Takeaways for Dealers:
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Keep Inventory Targeted.
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Focus on high turn, avoid overstocking as floorplan costs stay high.
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Lead Inventory Strategy with Affordability.
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Emphasize payments, CPO, and finance flexibility to offset higher rates.
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Capitalize on Year End Incentives.
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Align marketing and inventory timing around December OEM promotions.
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Plan to Protect and Forecast Margins.
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Prioritize lenders, trade-ins and retention while preparing for a stronger 2026.
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