⚡ Market Pulse: New car sales aren't dying—but lazy deals are

Hey everyone. Mike Kelly (Bourne’s Auto) and Jeff Ramsey (Ourisman Auto) are dropping in for Daily Dealer Live today, and it’s a can’t-miss.

It’s also our 10th episode since launching, airing live at 1 p.m. EST.

Streaming on all CDG channels. See you there.

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Welcome to the CDG Market Pulse—your no-fluff cheatsheet to auto retail, built to help dealers price right, stock smart, and stay ahead.

(Data sourced from J.D. Power / GlobalData)

⚡ New car sales in May are coming back down to earth after March and April’s early tariff rush.

May sales are tracking toward 1.49M units, nearly flat YoY.

But here’s the context: around 149K units were pulled forward into March and April as buyers moved early, anticipating tariff-driven price hikes.

That early rush cleared out some demand. And with retail new car inventory up 23% YoY to 2.13M units in May, inventory’s not what’s holding shoppers back.

They’ve got options, and the time to browse, bounce, and wait for the deal that fits.

The biggest hurdle? Price.

New cars are averaging $45,462 in May. Meanwhile, used is holding at $29,168.

That’s a hefty $16K spread, and for many buyers, it’s a clear signal to lean used.

From acquisition to sale, our premium solutions help you drive revenue and efficiency:

• Source with Sell My Car: Acquire high-quality vehicles from the #1 largest car shopping audience.¹

• Stand out with Highlight: Promote select inventory and get 2.3x more VDP views than regular listings.²

• Price strategically with custom reports: Increase daily VDP views by up to 42% with the Next Best Deal Rating report³ or hold margins with the Maximize Margin report.

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Sources: 1. Similarweb, Traffic Report (Cars.com, Autotrader, TrueCar, CARFAX Listings (defined as CARFAX Total visits minus Vehicle History Reports traffic), Q1'25, USA. 2. US Highlight listings compared to non-Highlight listings on both the used SRP (only Fair, Good and Great Deals) and new SRP, Jan-Oct 2024. 3. CarGurus analysis of US dealers that changed a vehicle price based on NBDR recommendations compared to vehicles without an NBDR- informed price change from Nov 2023 through Dec 2024. 4. S&P Global Mobility – Polk Signals, based on all CarGurus leads who select the hard pull offer given compared to all regular email leads in Q4 2023.

⚡ Versa, Mirage, and Trax are leading the way on value with sub-$25K price tags and low(ish) fuel costs.

TrueCar pegs the 2025 Mitsubishi Mirage, Nissan Versa, and Chevrolet Trax as top value plays thanks to each model’s sub-$25K price and ~$1,100-$1,400/year in fuel costs.

When the average new car costs $45K+ and burns around $2,100 in fuel cost a year, low-cost models like these stand out fast.

If you’re trying to sum up May’s new-car sales in one word, try lopsided.

Phil Richard, CMO at Arrowhead Honda in Arizona, said they’re pacing down 17% vs. last year, despite a 5% lift in April. Jeremy Beaver, CEO of Del Grande Dealer Group, reported a “high single-digit” decline, even with a traffic bump over Memorial Day weekend.

Others told us it was brutal…

One CDJR store in metro Detroit called the weekend “horrendous” in reply to a CDG post on X. And one Honda dealer in Massachusetts said it was their worst Memorial Day since 2017, with buyers tossing out $5K-off asks on CR-V Hybrids.

However, not everyone missed.

Even Richard, down 17% on the month, moved Ridgelines and Prologues over the weekend by leaning into short-term buy-downs.

New sales aren’t easy right now, and part of that is timing. Buyers who rushed in during March and April to get ahead of possible tariffs have already made their moves.

That said, demand is just narrowing. It’s not disappearing.

And dealers who moved metal in May weren’t waiting for traffic. They were mid-month adjusting, running tighter payment scenarios, and leaning hard into structure.

We’ve seen it in action: dealers using AI to sharpen vehicle listings or swapping “lease” for “payment management” to help buyers understand the deal.

Those wins came from control, not volume.

Thanks for reading everyone.

— CDG