PPO Morning Market Update — Luxury Softening, Used EV Stabilizing & Fast-Trust Gaps
December 5, 2025
The market isn’t weakening — it’s reshuffling. Luxury segments are softening, select used EV trims are stabilizing, and fast-trust merchandising is emerging as the new SRP→VDP lift lever.
Luxury segments are cooling — especially aging German sedans and midsize luxury SUVs.
1. Luxury Demand Is Softening — Quietly but Noticeably
Luxury pricing reached its ceiling in Q4. Now the signals are showing up in:
- German sedans and midsize luxury SUVs sitting past 45–55 days
- Payment-sensitive luxury shoppers cross-shopping down-segment
- OEM incentives quietly creeping upward on new-car luxury
Dealer Move: Reprice aggressively over 45 days and tighten trim merchandising. Luxury shoppers compare harder than any other segment.
Mid-range trims are stabilizing — shoppers want range confidence and value.
2. Used EVs Are Stabilizing — But Only in the Right Trims
The EV crash is over for trims that meet realistic shopper expectations:
- Tesla Model 3 RWD (23–30K sweet spot)
- Bolt EUV LT (affordable, reliable range)
- Ioniq 5 SEL (tech + comfort without the price spike)
Base trims with weak real-world range still struggle unless deeply discounted.
Fast-trust merchandising is unlocking 15–35% VDP lifts in most markets.
3. Fast-Trust Merchandising Is the SRP→VDP Advantage in December
Shoppers are burned out on fluff. They want transparency and clarity:
- Clean photos
- Recon transparency (show what’s been fixed)
- Trim accuracy (no more Prius 1 mislabeled as a Prius 4)
- No missing features or packages
- Pricing tied to LMDS and vehicle condition
Stores running a fast-trust strategy are seeing 15–35% VDP lift depending on the segment.
The December Dealer Checklist: luxury pricing, EV trim strategy, and fast-trust actions.
The Bottom Line
December isn’t soft — it’s shifting:
- Luxury is softening (adjust early, not at 60 days).
- Used EVs are stabilizing in the trims that make sense.
- Fast-trust merchandising is the easiest SRP→VDP win available.
Dealers who clean their data, price luxury realistically, tell a recon story, and lean into EV trims with real demand will win the month.
📘 Download the PPO Fast-Trust Merchandising Checklist
Get the 7-step checklist dealers are using to boost VDP engagement 15–35%.
Download the Checklist