Used Car Dealers NAICS 441120

Dec 19, 2025 - Automakers Urge Lawmakers to Boost Restrictions on China

• Major US and global automakers - including General Motors, Ford, Toyota, Volkswagen, Hyundai, and Stellantis - warned lawmakers that expanding Chinese auto and battery producers pose a “clear and present threat” to the US auto industry, urging restrictions on Chinese plants and maintaining bans on certain technology imports. Tariffs on Chinese vehicles and components have added supply-chain pressures, raising costs for manufacturers and suppliers, which can ripple down to dealers. For auto dealers, intensifying competition and political tensions may affect inventory and pricing: Chinese EVs and vehicles could enter US markets at lower costs, increasing competitive pressure and potentially shifting customer demand. Dealers may face challenges in sourcing popular domestic models if automakers push suppliers to relocate production and reshuffle supply chains. Overall, policy, tariffs, and competitive pressures are likely to influence vehicle availability, pricing strategies, and dealer operations.
• Auto collision repair trends in 2025 are directly influencing used vehicle supply, valuation, and reconditioning costs, according to CCC Intelligent Solutions. Elevated new-vehicle prices and interest rates are keeping consumers in older vehicles longer, tightening used inventory while increasing the average age and diversity of vehicles entering dealer lots. As more used vehicles are equipped with driver warning system, hybrid, and EV components, post-collision repairs and reconditioning have become more complex and costly, particularly due to the growing need for diagnostics, scans, and calibrations. Parts price volatility tied to tariffs and supply chain disruptions further complicates reconditioning budgets and resale pricing. For used car dealers, these trends heighten the importance of accurate damage assessments, repair cost forecasting, and strategic sourcing to protect margins and manage risk.

• Ford and Hyundai's moves to sell certified pre-owned vehicles on Amazon Autos reflects a growing trend in the used car industry to blend online convenience with traditional dealership infrastructure. Buyers in cities like Los Angeles, Seattle, and Dallas can browse local dealers’ inventory, complete financing and most paperwork online, then pick up the car in person. For dealerships, the partnerships creates a new digital sales channel that expands their reach while preserving their central role in pricing, delivery, and service. At an industry level, the move highlights a broader shift: instead of replacing dealers, major online platforms are increasingly collaborating with them, pushing used car retail toward a more hybrid e-commerce model that aligns with changing consumer expectations.
• Subprime auto loan delinquencies in 2025 have hit a record of more than 6%, according to Fitch Ratings, as lower-income borrowers struggle to make payments. The percentage of new-car buyers with credit scores below 650 rose to nearly 14% in September, per JD Power, the highest level since 2016. Stagnant wages and rising unemployment have led many consumers to purchase used cars with extended loans, resulting in average monthly payments of $750, with nearly 20% of loans surpassing $1,000 a month. (Not coincidentally, Cox Automotive notes that car repossessions increased to 1.73 million last year, the most since 2009.) Wall Street continues to invest in subprime auto loan-backed bonds despite the risks, citing stricter underwriting standards. Automakers like Ford and General Motors are also adjusting strategies to address the financial strain on consumers, including offering lower rates to risky borrowers and focusing on making more affordable vehicles.