🚗 What 2025 Changed for Dealers and What Comes Next

PRESENTING

Howdy, Friend,

It’s Christmas week. Things are slowing down and somehow getting busier at the same time, so we’ll keep this tight.

Below is a clear rundown of the changes that shaped the auto industry in 2025 and what they mean right now as we head into 2026.

Auto News, Cox, and More Than Cars can outline the forces at work, but the outcome is still decided at the dealership. What matters most is what we choose to do with the information in front of us.

Challenges, opportunities, wins, losses.

None of them has stopped you yet. There’s no reason to assume the next one will.

Keep Pushing Back
-Chris with Paul, Kyle & Kristi

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PRESENTING THE TRUTH ABOUT CAR DEALERS

Highlighting the Real Ones

This industry has never needed a script. It has just needed someone to pay attention.

Our docu-series is built on the grit, chaos, and humanity that actually lives inside a dealership.

Real dealers. Real people. Real impact.

If you haven’t seen it yet, this is a good place to start.

THE NEWS

Auto Industry Outlook 2025: Tariffs, EV Policy, and Dealer Impact

How trade and EV decisions reshaped pricing, products, and investment

Auto News tallied the year and found trade policy and EV reversals defined 2025. Together, they reshaped pricing, product plans, and where automakers are willing to invest next.

Tariffs added billions in costs across the industry, pushed prices higher, and made several low-margin imports impossible to justify. At the same time, the removal of the federal EV tax credit accelerated cancellations and delays just as demand was finding its footing. Hybrids stepped into that gap faster than many expected.

Manufacturers responded by committing billions to U.S. production. But relief is not immediate. New plants and expanded lines take years, not quarters.

The next chapter is already forming. Major tariff decisions, supply chain risk, and volume pressure heading into 2026 are all in play.

Auto Market Update: Interest Rates, Jobs Data, and Vehicle Affordability

What the latest economic signals mean for dealers and buyers

Economic data shaping expectations

• November job growth slowed sharply, with the three-month average falling to 22,000 jobs per month

• Unemployment rose to 4.6%, the highest level since 2021

• Inflation continued cooling, with core CPI at its lowest level since early 2021

• New-vehicle affordability improved slightly in November, supported by wage growth

The economy is losing momentum while inflation pressure is easing. Historically, that combination creates room for rate cuts. Markets, however, are not expecting immediate action. Futures show little expectation of a January move, pointing instead to potential easing later in the first half of 2026.

Why care?

• Average new-vehicle payments remain elevated at $776

• Auto-related consumer spending slowed to 1.2% year over year in October

• Any rate relief would support affordability, but near-term conditions remain tight

The direction is encouraging, but the pace is slow. Dealers should plan for continued payment sensitivity and cautious buyers into early 2026.

Auto Policy Uncertainty: Why Dealers Are Feeling the Whiplash

How shifting regulations affect inventory, pricing, and confidence

Congresswoman Debbie Dingell points to policy instability as the biggest threat facing the auto industry today. Frequent shifts in trade, EV incentives, and regulatory direction make long-term planning difficult for manufacturers and dealers alike.

She highlights a critical change in consumer behavior. Affordability has replaced emotion for many buyers. Monthly payment, operating costs, and long-term value now outweigh brand and design for a growing share of shoppers. When incentives disappear or costs rise without warning, hesitation follows and disruption lands at the dealership.

On EVs, Dingell is direct. Demand exists, but uncertainty suppresses it. Vehicles remain expensive, infrastructure is uneven, and incentives appear and disappear mid-cycle. Pulling support before volume brings costs down slows adoption and increases retail risk.

Certainty enables investment, inventory planning, and consumer trust. Without it, volatility shows up first and hardest in the showroom.

Retail Trends to Watch: Gen Z Shoppers and In-Store Experience

Gen Z shoppers are spending more time in stores when the experience feels intentional. Research shows festive decor, music, and small seasonal touches increase dwell time and purchase likelihood, even as budgets stay tight.

Experience, not discounts alone, is pulling younger buyers back into physical retail.

AROUND THE ASOTU-VERSE

Dealer Conferences and Industry Events (2026)

• February 3-6: NADA Show 2026, Las Vegas, NV

• May 12-15: ASOTU CON 2026, Hanover, MD

Quick Hits

• 🛒 Retail: Chipotle teamed up with travel brand BÉIS to create an 11-piece luggage collection (complete with burrito holder, obvi).

• ✈️ Travel: JetBlue unveiled its first airport lounge at New York City’s JFK airport last week.

• 🎶 Music: Beginning in January, Billboard will add more weight to on-demand streaming to better reflect listener behavior.

Today in History

• 1788: Maryland votes to cede a 10 square mile area for District of Columbia. 🇺🇸

• 1907: The first all-steel passenger railroad coach is completed in Altoona, Pennsylvania. 🚂

• 1947: The transistor is first publicly demonstrated at Bell Laboratories in Murray Hill, New Jersey. 💡