Presented by:
Hey Everyone!
We’re digging into a spicy topic for an upcoming article...employee pay plans.
Like, what does each dealership role really earn, and what should actually be paid?
I want to hear it all—the good, the bad, the wild.
If you’re a dealer or dealership employee, and you’re game, let’s connect for a quick 5 min. chat. Totally anonymous if you prefer.
— CDG
First time reading the CDG Newsletter?
Welcome to the Market Pulse—your no-fluff cheatsheet to auto retail, built to help dealers price right, stock smart, and stay ahead.
New Prime rates are down, giving dealers more room to make aggressive offers (↓ 5 bps MoM, ↓ 55 bps YoY).
Used Prime rates saw the biggest drop, but the slight MoM uptick suggests lenders are getting cautious (↑ 4 bps MoM, ↓ 63 bps YoY).
New Subprime rates dipped slightly, but affordability is still tight (↓ 2 bps MoM, ↓ 12 bps YoY).
Used Subprime rates eased a bit, but approvals are still hard to come by (↓ 7 bps MoM, ↓ 10 bps YoY).
(Data sourced from Cox Automotive with custom calcs via CDG’s Joe Cecala)
Auto loan rates are easing YoY, with prime rates leading the slide.
Subprime loan rates are sitting at 15-17% this year, and prime rates are hovering at 7-9%. Both are making affordability tougher for buyers.
The good news: Rates dipped slightly in May (everywhere except for used prime).
It’s a small break, but one dealers can use to push deals before rates climb again.
And with the gap between prime and subprime rates stretching wider, especially on used, matching buyers to the right financing fast matters more than ever.
NOTE TO DEALERS
For new: Try focusing on base or mid trims of Civic, Corolla, Sentra that stay under $30K, with more traditional term lengths and reasonable down payments.
For used: Pitch CPO RAV4s, CR-Vs, or Tacomas—models with solid resale that won’t leave buyers $3K+ underwater at trade.
The window’s open now, but it could close fast if tariffs or rates shift.
Leasing is gaining steam, but the wins aren’t landing evenly.
Honda and Toyota are locking down the strongest lease share so far in 2025, per Experian.
Tesla’s lease growth is picking up speed, too, grabbing more EV shoppers who want flexibility.
CDG analysis via Joe Cecala
Meanwhile, Kia, Ford, and Hyundai are holding steady, with solid plays for value-focused buyers.
But Cadillac and Audi? They’re losing ground, which means those leases need a stronger hook to move.
WHY IT MATTERS
Leasing is one of the few ways left to get buyers into affordable payments without stretching terms or down payments too far.
That’s why Honda, Toyota, and even Tesla are pulling ahead—they’re matching the market’s appetite for both flexibility and value.
A quick word from our partner
SalesAPE.ai instantly qualifies every inbound auto lead and books high-value appointments- sales, test drives, rentals, service, repairs.
Trusted by dealers nationwide and backed by $20 M in funding, SalesAPE generates up to 4× more booked appointments without adding headcount.
24/7 AI lead qualification
Conversations that convert across sales, service & rentals
Instant CRM sync for effortless follow-up
Dealers report up to 400 % ROI and rate us 4.4/5 on Google.
Here’s where many dealers could be missing opportunity: refinancing “in-the-money” auto loans, where today’s rates beat what the buyer originally signed for.
Our analyst’s take: This pool of buyers is growing fast as rates dip. And if rate cuts hit the 75–100 bps range this year, it could open the door to even more refi demand.
Sure, no dealer controls the rate environment. But you can control how to spot these buyers and package the offer.
Tactics that are helping dealers capture refi demand:
Targeted refinancing deals that save buyers $50–$100/month.
Pair lower rates with flexible structures—like extending loan terms (where appropriate) or reducing down payments to help close.
Promote prepaid maintenance or warranty options alongside refis to boost value and build loyalty.
Stock mid-range used inventory strategically. Not as a direct refi tool, but because rate-sensitive customers refinancing may also be looking to swap or trade up.
There’s also financial upside, because refinanced loans are showing lower delinquency rates, holding near 2% vs purchased loans.
CDG analysis via Joe Cecala
That could mean stronger portfolio health and fewer collections headaches for dealers.
Buyers with equity and high rates are hiding in plain sight, and in today’s rate environment, they’re worth a second (or third) look.
Identify customers with payments over $800/month and 9%+ APRs. Many of them don’t realize they’re in a position to save. Whether it’s a true refinance or a smart trade-in, if you can cut their payment by $50–$100/month, that’s usually enough to get them moving.
Missed yesterday’s episode of Daily Dealer Live?
Presented by: CarNow
Gerry Raymond on buying first store, VINart Dealerships on OEM co-op struggles
Featured guests:
Gerry Raymond, President of Gerry Raymond Automotive
Andy Wright, Managing Partner of VINart Dealerships
Three opportunities hitting the CDG Job Board right now:
St Louis Auto Group: Chevrolet Service Manager (Missouri)
Sterling Heights DCJR: Controller (Michigan)
Sid Dillon: Fleet Sales Rep (Nebraska)
