PPO Morning Market Update — Used Cars Stabilize, EVs Climb, and Amazon Won’t Leave the Room

Today’s used-car story isn’t “up” or “down” — it’s split. EVs are quietly gaining ground, affordable cars are still scarce, and Amazon’s shadow is still hanging over every conversation about how dealers should sell and merchandise.

Used-Car Prices Look Stable, But the Segments Don’t

Headline numbers say the used-car market is “steady.” The Manheim Used Vehicle Value Index is roughly flat year-over-year, with a small month-over-month bump. On the surface, it feels like we’ve finally reached a new normal.

Beneath the surface, the story is very different:

• Used EVs are one of the strongest-performing categories on a year-over-year basis.
• Compact ICE cars are down materially year-over-year, with midsize sedans, SUVs, and pickups also seeing softening.
• Anything under $15,000 is still painfully hard to replace, with days’ supply well below the market average.

So yes, the used market is “stable” — but only if you lump everything together. At the segment level, some vehicles are holding or gaining ground, while others are quietly sliding.

New-Car Softness Is Pushing More Buyers Into Used

New-vehicle demand continues to soften. SAAR has ticked down year-over-year, and payment fatigue is still very real. Many would-be new-car buyers are now walking into the store with a hard ceiling on their monthly payment and an open mind about going used.

That has two important consequences for the used operations:

1. More eyeballs on your used inventory. Buyers who once insisted on new are now open to a low-mileage CPO or well-merched late-model used car.
2. Fewer future trades and off-lease units. If fewer new cars are being sold, there will be fewer clean, late-model units feeding your used inventory in 2026 and beyond.

That combination — more demand, thinner future supply — is exactly why acquisition discipline and turn strategy matter more today than they did two or three years ago.

Used EVs Are Quietly Becoming a Profit Lane

While headlines scream about an “EV collapse,” the used side is telling a very different story. Dealers who lean into EVs — instead of running from them — are finding opportunity:

• Battery anxiety is easing as shoppers see more real-world EVs on the road and better battery reporting.
• Used EV prices are closer to the real world, often well below the eye-watering MSRPs of new EVs.
• Year-over-year interest in used EVs is holding or improving, even when new EV sales wobble.

The operators who are winning here aren’t “EV-only” disruptors — they’re disciplined used-car dealers who apply the same fundamentals: know your trims, price to the market, and tell a clear story about equipment, range, and battery health.

If you can explain why this used EV is a smart buy in 30 seconds on the VDP, you’re ahead of most of your market.

Amazon Is Still in the Room, Even When You Don’t Say Its Name

The Amazon-auto announcement may not be on the front page every day anymore, but its impact hasn’t gone anywhere. Whether they realize it or not, your shoppers are bringing Amazon-style expectations to your website and your VDPs:

• Simple, transparent pricing instead of a guess-and-call experience.
• Fast trust: clear photos, clear equipment, clear condition — no surprises when they show up.
• Confidence in fulfillment: “Can I really get this car, at that price, on that timeline?”

That’s why sloppy merchandising hurts more than it used to. Missing trim info, vague condition descriptions, and low-effort photos aren’t just “good enough” sins anymore — they’re reasons for shoppers to click back and find a dealer who feels more like Amazon and less like 2009.

The good news: you don’t have to become Amazon. You just need to beat your immediate market on clarity, transparency, and trust.

The PPO Bottom Line for Used-Car Operators

• EVs are stabilizing and outperforming in the used lane. Stock smart, merch clearly, and lean into trims and battery story.
• Cheap used cars are still hard to source. Don’t overpay on sub-$15k units and don’t let them linger — turn is your friend.
• New-car softness means more used demand but fewer future trades. Tighten acquisition strategy now; don’t wait for 2026 to surprise you.
• Amazon changed expectations, not just headlines. If your SRPs and VDPs don’t build fast trust, the shopper will find someone else’s that does.

Want help testing AI-powered vehicle descriptions or fast-trust merchandising on a handful of units? Reach out, and we’ll map out a simple 7-day experiment.