All Things Used Cars 7-24-2026

Sponsored by Agile Auto

 

 

U.S. Economic Conditions:

• CPI fell 0.4% for June w/ core inflation slowing to 2.6%, its lowest level since February.
• Producer prices also declined, led by lower energy and goods costs.
• Consumer spending remained positive but modest.
• Total retail sales rose 0.2%, w/ consumer sentiment improving in July

 

Auto Market Conditions:

• Automotive sales increased 1.9% for the month and 5.7% year over year.
• Credit availability is at its strongest level in years
• Lender confidence continues to support stable retail demand
• A stable inventory environment is helping dealers better manage pricing and margin expectations.

 

Dealer Performance:

• Average dealership pretax profit declined 11.8% year over year, largely due to comparisons against an exceptionally strong 2025 rather than deteriorating market fundamentals.
• Used vehicles’ gross profit averaged $1,409 per retail unit, down year over year but improving for the second consecutive quarter, signaling margin stabilization.
• F&I continues to offset tightening vehicle margins, reaching a record $1,769 per retail unit.
• Fixed operations remain the largest contributor to dealership profitability, generating 52.8% of total gross profit, with gross profit increasing 5.2% year over year.
• Operating expenses remain one of the largest challenges as dealers continue investing in technology and productivity improvements while managing rising personnel costs.

 

Agile Auto Dealer Takeaways:

 

Demand remains healthy, but affordability is driving consumer behavior.

• Stay disciplined with your Core vs. Non-Core inventory strategy.

Success is shifting from market conditions to operational execution.

• Eliminate profit leaks by optimizing every step of the acquisition-to-retail process.

Inventory quality and acquisition discipline in the competitive advantage.

• Buy what fits your store, not just the market, with reconditioning costs and future retail success in mind.

F&I and Fixed Operations continue to offset tightening front-end margins.

• Focus on stronger back-end profitability allowing for more confident and strategic acquisition decisions.

Dealers that execute data-driven decisions outperform in a volatile market.

• The winners are forward-looking dealers who operate with precision, not fear.