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Hey everyone,

ICYMI… this morning, we dropped detailed coverage of how the industry (dealers, consultants, etc.) is responding to the FTC’s warnings issued to 97 dealer groups last week.

— CDG

First time reading a CDG Newsletter?

Welcome to the Market Pulse—your cheatsheet to auto retail, built to help dealers price right, stock smart, and stay ahead.

  • The used car market is splitting in real time: A core group of everyday models is still turning in 30–35 days, while others are stretching past 90–100+ days on market.

  • Added supply is coming to the wrong side of the market: Many of today’s slowest movers (like Escape, Nautilus, Corsair) are also facing rising lease return volume into late 2026 and early 2027.

  • So dealers are adjusting by getting more surgical: Think doubling down on proven fast-turn models, separating acquisition from pricing, and building repeatable sourcing strategies instead of reacting month to month.

(Source: iSeeCars / CDG Analysis via ABS Ford Credit Auto Lease Trust)

Only a narrow group of used cars is still turning in 30–35 days.

iSeeCars recently looked at how quickly 1-to-5-year-old used cars are selling, and their findings show there’s still strong movement in a group of models most dealers are very familiar with.

On the faster side: Vehicles like the Honda Civic Hybrid, Toyota GR Corolla, Hyundai Kona Electric, Nissan LEAF, Lexus RX hybrid, and Tesla Model Y are all turning in the low-to-mid 30-day range, well ahead of the 53-day market average.

  • That tells us demand is still there in practical, everyday segments, especially for fuel-efficient cars, smaller crossovers, and well-priced electrified vehicles.

But on the other end: Many of the slowest-moving vehicles are now sitting 90 to 170 days on market, or roughly 2 to 3 times longer than average.

  • More specifically, models like the Ford Escape Plug-In Hybrid, Lincoln Nautilus Hybrid, Lincoln Corsair, and Volvo XC60 hybrid are all taking 100+ days to sell.

This spans EVs, hybrids, and gas vehicles, too, reinforcing that this is more about how each model is positioned, priced, and demanded in today’s market than it is about powertrain.

NOTE TO DEALERS:

The gap between what sells in 30 days and what sits for 100+ is wide enough to build a strategy around.

The move:

  • Prioritize acquisition of proven 30–35 day turn models (Civic, Kona, RX, Model Y-type inventory)

  • Price slow-moving units aggressively within the first 10–15 days, vs waiting for aging to force the decision

  • And identify high-risk models early and have a clean wholesale exit plan before they hit 60+ days

A wave of incoming supply is about to hit the slowest-moving models.

Many of the same models showing up on the slowest-moving list today are also the ones with steady lease maturities over the next 12 to 18 months.

For example: Vehicles like the Ford Escape, Lincoln Nautilus, and Lincoln Corsair are all expected to see consistent volumes returning from lease, with some noticeable increases into late 2026 and early 2027.

Custom analysis via CDG’s Joe Cecala

Some context: This chart shows projected lease return volume. If it holds, dealers should expect more of these units coming back to market.

And the same dynamic applies to any model with rising off-lease volume.

WHY IT MATTERS:

Unlike in recent years, these models don’t have much support. With fewer incentives on both new and used hybrids and EVs, they now have to compete on price, positioning, and actual consumer demand.

That means this supply is more likely to sit longer, push pricing down, and create more aging inventory on dealer lots, especially for stores that wait too long to adjust their strategy.

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To see how operators are thinking about inventory right now, we pulled a few insights from recent Daily Dealer Live conversations with dealers on the ground.

Here are the Dos and Don’ts that stood out:

Do: Stick with an acquisition process long enough to know if it works.

Art Moehn Auto Group Sales Director Charlie Spradlin said too many stores give up on an acquisition channel after one soft stretch.

“You can’t take 60 days of results and be like, ‘It’s not working. I’m tossing it out.’”

Charlie Spradlin

At his store, that’s meant continuing to invest in service lane and off-street acquisitions even when monthly results fluctuate, rather than constantly resetting the strategy.

Over time, he says those channels have become a meaningful, repeatable source of inventory.

Do: Commit to acquisition like it’s its own department.

Spradlin said stores that want to source meaningful volume outside of trade-ins have to stop treating acquisition like a side job.

“If we’re going to acquire 100, 150, 200 cars a month, you need to have a department dedicated to it. You can’t just have one guy.”

In practice, that means putting people in place whose only job is to source cars, work service drive opportunities, and buy from the public every day.

When acquisition has that level of focus, it stops being something that happens when there’s time and starts producing consistent volume.

Don’t: Let your acquisition buyer control retail pricing.

Bob Ruth Ford VP Rob Dell was blunt about one operational change that made a big difference for his team.

“Whoever buys the car cannot have anything to do with pricing.”

Rob Dell

Why? Buyers tend to defend the buy, especially if they stretched to get the deal done.

At his store, pricing is handled separately, with a different manager owning the retail strategy and holding a strict 45-day turn window.

That separation creates a cleaner, more objective pricing process and helps prevent units from sitting just because someone’s trying to justify what they paid.

The fastest way to improve any department right now is to try things your store hasn’t done before.

For some dealers, that means building a dedicated acquisition function.

For others, it’s separating the person buying cars from the one pricing them.

And at your store, it may be something else entirely.

But as I’ve said before: Getting 1% better comes from shipping, refining, and repeating, not waiting until every idea is 100% airtight.

Missed yesterday’s episode of Daily Dealer Live?

Presented by:

Layton on Appraisals, Dunne on China, RussFlipsWhips on Social

Featured guests:

  • Hicks Layton, Finance/Sales Manager at Hicks Automotive Group

  • Michael Dunne, CEO of Dunne Insights LLC

  • RussFlipsWhips, RFW Training

The latest updates to the CDG Buy/Sell Tracker.

Stone’s Auto Group acquires 2 dealerships in Wyoming resort town

Harvey Automotive Group acquires 2 Calif. dealerships

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Thanks for reading, everyone.
— CDG

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