Hey everyone. The number of dealerships (rooftops) rose by 27—reaching 18,374 by December 31, 2024, according to Urban Science.
But franchises—the brands sold by those dealerships—shrunk by 380 year-over-year to 30,124.
More rooftops + fewer brands = a sign of consolidation reshaping the market.
— CDG
New car prices cooled in January—but the bigger story is incentives:
Despite dipping slightly month-over-month—
Incentives are still up 29% year-over-year (averaging $3,486).
And that’s good news because the average new car transaction price is still near historic highs ($48,641).
But with tax refund season slowly building momentum—my bet is that incentives will spike in the coming weeks.
Unless—tariff uncertainty compels automakers to tread lightly.
(Data/graph source: Kelley Blue Book)
1. Toyota tells dealers to prepare for more inventory
Toyota is flooding U.S. showrooms with over 20 new or refreshed models in 2025.
That’s straight from David Christ, Group VP and GM, during a recent dealer meeting—where he also laid out big production goals for the automaker.
Toyota aims to surpass last year’s output of 2 million-plus vehicles built in North America. An ambitious target, considering 2024 wasn’t exactly smooth sailing—think Daihatsu’s safety scandal and stop-sales on key models like the Prius and Grand Highlander.
But the real challenge? Balancing innovation with reliability. Toyota has to prove it can grow without sacrificing the quality that built its reputation … (Go deeper: 2 min. read)
2. Used car market races into 2025, but price relief may be short-lived
Used cars are starting 2025 off strong, with lower prices and pent-up demand fueling a January demand surge—up 8% year-over-year, according to the latest report from CarGurus.
Prices dipped 3%, and used vehicles are selling nearly 9% faster than before.
But those lower prices may not last. Rising wholesale costs and tightening inventory could drive used prices back up quickly.
Meanwhile—the new car market is showing cracks. Luxury models and expensive EVs are driving costs higher, while incentives are drying up just as tax season kicks in.
Bottom line: With new cars sitting on lots longer—up 20% from last year—automakers risk leaving dealers with more cars—and more headaches … (Go deeper: 3 min. read)
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3. Protests erupt nationwide over Elon Musk’s role in federal government
Protests against Elon Musk’s leadership of the Department of Government Efficiency (DOGE) are making waves nationwide. Demonstrators rallied outside Tesla dealerships from Portland to Washington, D.C., urging owners to sell their cars and stock.
For context—the backlash comes as Musk faces scrutiny over his push to slash federal spending. Supporters call it government efficiency—critics call it a power grab.
Meanwhile—the Treasury Department admitted a DOGE staffer briefly had editing access to federal payment systems, triggering an audit.
And with 14 state attorneys general now suing to limit Musk’s authority, the battle over DOGE is only heating up … (Go deeper: 2 min. read)
Trump says auto tariffs coming April 2.
Ford hopes cost reduction efforts will steer different stock story.
Nissan could import up to 50% of next-gen Rogues to U.S. from Japan.
Why don't Europeans buy more American cars?
Learning about careers in the auto industry.
Did you enjoy this edition of the Daily Dealer newsletter?
Thanks for reading everyone.
— CDG
