March and April 2025: A Tale of Two Auto Markets

In March, U.S. new-vehicle sales surged to nearly 1.56 million units, marking the highest seasonally adjusted annual rate (SAAR) in four years at 17.8 million. This spike was largely driven by consumers rushing to purchase vehicles ahead of the anticipated 25% import tariffs announced on March 26.

However, April told a different story. Sales cooled to approximately 1.46 million units, with a SAAR of 16.4 million. The early-month buying frenzy led to a significant drawdown in inventory, dropping to 2.69 million units and reducing the days’ supply to 70.

Implications for Dealerships and F&I Providers:

• Inventory Challenges: The rapid depletion of stock may lead to tighter supply in the coming months, potentially affecting sales volumes and customer satisfaction.
• Pricing Pressures: With inventory levels low, vehicle prices are expected to rise, which could impact affordability and financing options for consumers.
• F&I Opportunities: As new-vehicle sales fluctuate, dealers will focus on ancillary revenue through and increased focus on F&I products.

At Colonnade Advisors, we understand the complexities of the automotive market and are here to help you navigate these changes. Whether you’re considering a strategic acquisition or looking to optimize your F&I offerings, our team is ready to assist.

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