Used Car Dealers NAICS 441120

Nov 20, 2025 - Automakers Partnering with Amazon and Used Car Dealerships

• 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.
• S&P Global Mobility projects US light‑vehicle sales in October 2025 at about 1.29 million units, translating to a 15.6 million seasonally adjusted annual rate (SAAR), down from the 16.4 million SAAR average in Q3. The strong performance in the third quarter was largely driven by a surge in electric vehicle (EV) demand ahead of expiring consumer EV tax credits, creating a “pull-ahead” effect. That effect is expected to ease in Q4, combined with affordability pressures and thinning dealer inventories, which will likely moderate overall sales growth in the coming months. EV market share is projected to decline sharply, with October’s share estimated at 5%, down from over 12% in September. For the full year, S&P anticipates total U.S. auto sales of around 16.1 million units, slightly below 2024’s pace.

• 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.
• National banks boosted their share of the auto loan market, writing about 31% of all new vehicle loans in the first half of 2025, according to Experian. It was a 5% year-over-year increase for new cars and a 1% increase for used cars (banks wrote 28% of used vehicle loans in that period). Banks are on pace to write 29% of all US auto loans by the end of the year. Earnings reports of three large banks all show double-digit value growth in auto loans: JPMorgan Chase had a 12% increase in auto loans for H1 2025 ($22 billion); Capital One rose 26% ($20 billion); and Wells Fargo jumped 47% ($11.5 billion). Industry experts attribute the shift to falling interest rates allowing banks to cheaply borrow money to originate auto loans, which they can then offer at lower rates to consumers in an effort to be more competitive.