Dealers brace for fewer CPO cars, TikTok’s impact on car buyers, automakers sue over braking rule

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Hey everyone.  CDG Recruiting has a dealer client in the Midwest looking for a top-notch General Manager.

Key requirements:

• Must have at least 5 years of experience as a GSM at a high-performing dealership.

• Previous experience with General Motors is a must.

• Willingness to relocate to the Midwest.

If you’re interested in this opportunity, email Steven or click here to inquire.

— CDG

The average new vehicle incentive package is up a staggering 197% compared to 2022:

While still not quite as high as 2019 levels—incentives came roaring back in 2024 as new car inventory finally crossed the 3M unit threshold for the first time post-pandemic.

And these more aggressive incentives are helping Stellantis dealers—in particular—shed older inventory.

– Market days’ supply for the Dodge brand is down 52% year-over-year.
– Chrysler’s day’s supply dropped by 40% and Jeep is down 14%.

Here’s new car availability (days’ supply) from least available to most:

(Data source: Cox Auto)

1. Certified pre-owned car sales expected to slide as inventory tightens

Used car sales remained steady in December, with dealerships selling 1.4 million vehicles—matching November’s numbers but up 12% compared to December 2023, according to Cox Automotive.

• Certified pre-owned (CPO) sales rose 4% month-over-month but fell nearly 5% year-over-year due to limited trade-ins and off-lease supply.

• Vehicles priced under $15,000 are especially scarce, with just a 37-day supply—well below the industry average of 48 days.

• The average used car listing price in December increased slightly to $25,271 but remains 3% lower than last year.

Big picture—Cox Automotive predicts demand for used cars will grow in 2025, with total retail sales forecasted to reach 20.1 million—a modest 1.2% increase … (Go deeper: 2 min. read)

2. TikTok’s role in car buying behavior is small but growing

A new study by Strategic Vision, surveying 57,000 new vehicle buyers and lessees, reveals TikTok’s sway is strongest among Gen Z but nearly nonexistent for older generations.

• 13% of Gen Z buyers used TikTok during their car-buying journey. That drops to 6% for Millennials, 2% for Gen X, and less than 1% for Boomers.

• Overall, TikTok influences just 2.2% of all new vehicle buyers—more than radio (1%) and newspapers (1.2%) but far behind platforms like YouTube, which influences 18.3%.

• Manufacturer websites are the most trusted resource for buyers, cited by 63% of respondents, followed by dealer websites (58%), Consumer Reports (28%), and Kelley Blue Book (18%).

Bottom line: As TikTok’s future in the U.S. remains uncertain due to ongoing security concerns, its influence on younger car buyers may evolve as they look to social media as a key information source … (Go deeper: 3 min. read)

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At Ikon, we’re more than a tech provider—we’re your partner. Schedule a demo today to see how Ikon Technologies can help drive your dealership’s success.

3. Automakers challenge federal automatic emergency braking rule in court

The auto industry is clashing with the federal government over a new safety rule requiring advanced automatic emergency braking (AEB) in all vehicles by 2029.

The Alliance for Automotive Innovation, representing most major automakers except Tesla, has filed a lawsuit to block the mandate, calling it “practically impossible,” arguing the rule sets unrealistic standards that exceed current capabilities.

But safety advocates aren’t buying it. Groups like Consumer Reports and Advocates for Highway and Auto Safety are calling the rule the most impactful safety regulation in years, saying automakers should step up to meet the requirements.

Looking ahead: The Transportation Department has 40 days to respond to the lawsuit, but the rule’s future could change under the incoming Trump administration … (Go deeper: 3 min. read)

• Ricart expands with new Sunbury dealership.

• Why 2025 is set to be a crucial year for Amazon’s Zoox robotaxi unit.

• NHTSA probes 129,000 Ford vehicles over hands-free tech after 2 fatal accidents.

• The top electric cars in this winter range test will surprise you.

• Ford's CEO eyes domination in this iconic market.

Thanks for reading everyone.

— CDG