New vehicle sales poised to drop, Dealers battle Scout Motors’ DTC model, Used-car prices drop sharply

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Welcome to The Weekly, a roundup of the top five auto industry headlines of the week.

January U.S. new vehicle sales poised to drop in line with seasonal norms

New vehicle retail sales are projected to fall 3.7% year over year in January, a normal post-holiday slowdown, even as an extra selling day keeps total volume relatively steady.

At the same time, average transaction prices are forecast to climb to about $45,900, while profit per copy eases to roughly $2,150, signaling early-stage margin compression.

Put it together: And January is shaping up as a reset month, one where prices stay high, grosses cool, and dealers who lean on trade equity, used inventory, and F&I execution are best positioned to hold the line on profitability.

(Go deeper: 4 min. read)

New Jersey dealer group president battles Scout Motors’ direct sales model

New Jersey dealers are pushing back hard on Scout Motors’ direct-to-consumer plans, with Laura Perrotta, president of the New Jersey Coalition of Automotive Retailers, calling the model a clear violation of franchise law.

In a segment this week on Daily Dealer Live, she shared how her group is watching lawsuits play out in other states, all while gearing up to educate lawmakers and consumers on what the dealer model actually protects and offers.
Aka everything from fair pricing and disclosures to a $43 billion industry supporting roughly 70,000 local jobs in New Jersey alone.

Perrotta’s POV: “We have to tell these positive stories so that folks are realizing this is so much more than just about direct sales versus dealerships. There's a whole ripple effect.”

(Go deeper: 3 min. read)

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Used-car prices drop sharply in January ahead of expected tax refund bounce

Used-car prices are sliding hard in January, with CarFax showing drops of up to $1,000 in some segments and about $600 on average for SUVs, pickups, hybrids, and EVs.

That softness is typical for this time of year, but it’s happening right before tax refunds are expected to hit, which usually pulls prices and competition back up fast.

Bottom line: This is the buying window. Dealers who load the right used inventory now, while wholesale is soft, are better positioned to protect gross once tax-time demand tightens the market again.

(Go deeper: 2 min. read)

Dealers, NADA urge Congress to pass PART Act, help curb catalytic converter theft

Catalytic converter theft is still hitting dealers hard, with Greg York of Vann York Auto Group saying his stores lost about 30 converters in 2025, even in what he called a “light year,” with each theft costing $2,500 to $5,000.

That’s why dealers and NADA are pushing Congress to pass the PART Act, which would add serial tracking, tighten recordkeeping, create federal penalties, and fund retroactive marking to make stolen converters easier to trace.

Because their argument is this: This might not be flashy policy. But it’s expensive and real. And by asking lawmakers to help shut down a fast, low-risk crime, dealers can better protect draining inventory, customer trust, and fixed-ops dollars.

(Go deeper: 4 min. read)

Volkswagen’s upcoming U.S. Audi plant might not proceed as tariffs bite

Volkswagen is putting its planned U.S. Audi plant on ice after tariffs on European imports cost the company €2.1 billion in the first nine months of 2025, making a new factory hard to justify right now.

With a 15% U.S. tariff still in place, VW says it needs cost relief and more stable trade conditions before committing billions to local production, even as it continues to see the U.S. as a long-term growth market.

Until tariffs ease: VW and Audi dealers should expect slower, more incremental growth, with pricing, incentives, and allocation staying tied to imported product rather than a big boost from U.S.-based manufacturing.

(Go deeper: 3 min. read)