During today’s episode of CBT Now, LotLinx Chief Marketing Officer Kerri Wise joins us to explore key findings from the company’s May VINventory report. She also extends a warning to dealers that remains clear: the market has fundamentally shifted.
According to Wise, the sales boost seen in March and April due to looming tariffs has now dissipated. “That pull-ahead demand has been exhausted,” She explains that May sales began to decelerate as consumer behavior shifted from “want-based” to “need-based” shopping. Additionally, she cites broad economic and political uncertainty, high vehicle prices, and monthly payments exceeding $750 as factors pricing many consumers out of the market entirely.
The average new vehicle transaction price is now approximately $44,000, up nearly 30% from pre-pandemic levels, Wise said. According to LotLinx data, vehicles priced under $45,000 are selling 10 days faster than those priced above that threshold. Meanwhile, interest rates hovering between 7% and 9% have kept average monthly payments at record highs, making it harder for shoppers to finance a purchase.
“I think overall in this market, we have to lead with strategy and not just hope.”
Wise also noted a rise in used vehicle inventory age and the percentage of discounted used car sales, both of which increased month-over-month and year-over-year. She attributes the slowdown in used vehicle demand to April’s rush toward new cars before potential tariff price hikes, adding that affordability remains a greater issue on the used side due to the lack of leasing options and tighter access to financing.
Looking ahead, Wise warned that carryover inventory could grow as demand softens in the months ahead. She emphasized the importance of strategic, VIN-level decision-making for both new and used inventory. “Oftentimes, we might end up discounting more than we need to,” she said, “or maybe we’re not priced competitively enough…and the data doesn’t lie.”
With economic conditions changing weekly, Wise stressed that dealers must rely less on instinct and more on predictive insights to guide pricing, inventory acquisition, and marketing expenditures. “We have to lead with strategy and not just hope,” she said. “Let’s price right from day one based on what the predictive insights are telling us.”
Overall, Wise closed by reiterating that staying attuned to consumer demand shifts, especially by segment and price sensitivity, will be essential in the current environment.
