3-year trade-ins beat resale forecasts, dealer sentiment splits on tariffs, Senate punts EV rules to Trump

Hey everyone. Just dropped a fresh new CDG Podcast with Alan Haig of Haig Partners.

We get into the real reason dealership deals aren’t slowing down, why it pays to bet on an underperformer, and what the end of 2025 could look like for your profits.

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— CDG

Welcome to the Daily Dealer a concise rundown of the most important automotive industry headlines that matter to car dealers, automakers, and industry insiders.

BREAKING: Volvo CEO says customers are on the hook for a "large part" of rising tariffs.

His comments come as President Trump floats a straight 50% tariff on goods from the European Union starting June 1.

This would severely limit the ability of Volvo to sell its affordable EX30 electric vehicle in the U.S.

(Data source: Reuters)

1. Trade-in values on 3-year-old vehicles exceed forecasts by thousands — report 

Trade-in values are smashing forecasts, and imports are leading the charge.

According to Edmunds, 3-year-old vehicles built in Canada are beating resale value projections by $7,760.

• Japan: +$6,762.

• Mexico: +$6,428.

Even U.S.-built cars are up +$6,853.

That’s a margin lever hiding in plain sight due to low lease returns, rising tariffs, and a thinning pipeline of near-new vehicles pushing the used market upstream fast.

Edmunds says: “It would be in the dealer’s best interest to try to get ahead of this as much as possible and to see if they can coax people out of their existing cars to build their inventory as much as possible.”

(Go deeper: 3 min. read)

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2. Tariffs, economy drive a wedge in dealer sentiment for Q2 – survey

Dealers’ market outlook just tanked 13 points—the sharpest drop since 2022.

Franchised dealers are holding steady, but independents are flashing warning lights as confidence craters and concerns over tariffs and the economy hit new highs.

Plus, tariffs now rank among the top five dealer worries, right behind rates and consumer demand.

Bottom line: Momentum’s still there—but sentiment’s slipping, and the second half of 2025 is shaping up to be anything but stable.

(Go deeper: 3 min. read)

3. President Trump to decide fate of California emission rules after Senate vote

The Senate just threw down a major challenge to California’s gas car ban—voting to kill its 2035 mandate and hand the final call to President Trump.

If it sticks, states lose the wheel on EV targets, and federal control takes over. That could stall electric rollouts, extend the ICE era, and force automakers and dealers to rethink everything from inventory to investment.

Big picture: If this sticks, the EV game changes course. Dealers could get breathing room, but the roadmap ahead gets a whole lot hazier.

(Go deeper: 3 min. read)

Thanks for reading everyone.

— CDG

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