PPO Morning Market Update: Used Demand Holds as Incentives Fade

PPO Morning Market Update — November 22, 2025

Today’s used-car market is sending a clear message: retail demand is holding steady, inventory is tight, and new-car incentives are starting to wane. That combination puts used cars right back in the spotlight for value-focused shoppers.

1. Retail Used Sales Are Up, Supply Still Tight

Cox Automotive’s latest Live Market View data shows retail used-vehicle sales in October climbing to roughly 1.40 million units, up about 3.4% month over month and ~1.5% year over year. The national used inventory stands at approximately 2.26 million units, with a supply of about 48 days, and the average listing price is hovering around $ 25,900.

What this means on the ground:

• Used demand is not fading — it’s quietly grinding higher.
• Sub-$15K and clean late-model units will still feel “sold before they hit the ground.”
• You can’t count on “lazy turns” — you still have to merchandise and price with intent.

If your days-to-turn are drifting up while the national market is still moving, that’s not a demand problem—that’s a store execution problem.

2. New-Car Incentives Are Softening — That Helps Used

Industry analysts are already flagging a likely new-car market slowdown as OEM incentives tighten and consumer affordability stays under pressure. When the OEMs pull back on rebates and subvented rates, history says the outcome is simple:

More shoppers cross over into the used lane.

This is especially true for:

• Payment-focused buyers chasing a $450–$650/month target.
• Shoppers are looking at CPO and near-new used vehicles as an alternative to expensive new trims.
• Customers who are tired of negative equity and want to reset their payment stack.

If you run a one-price or market-based pricing store, this is the moment to tighten your value story on used: better payment, less depreciation, fewer surprises.

3. Practical Moves for Today

Here’s how to turn today’s headlines into tomorrow’s grosses:

• Audit your inventory stack by payment band. How many units realistically land under $500, $600, and $700 a month with today’s rates? Don’t guess. Build the table.
• Re-check your high-turn segments. Crossovers, late-model imports, and clean trades should be fast — if they’re aging past 45 days, something in pricing, photos, or copy is off.
• Lean into used as the hero, not the backup plan. If your sales meetings still lead with new, flip it. Today’s headlines are telling you where the real opportunity is.
• Upgrade your SRP/VDP copy. Shoppers comparing new vs. used want to see savings, payment context, and reconditioning transparency. “Loaded and like new” doesn’t cut it.

Dealer Takeaway

The story behind today’s data is simple:

Used demand is steady. New incentives are shaky. The dealers who treat used as a strategic profit center — not spillover — will win the next 90 days.

That means daily attention to:

• Price-to-market and price-to-payment alignment
• Turn-time discipline by segment
• Real merchandising — photos, copy, and recon that answer shopper questions up front

Try the PPO Morning Market Checklist

If you want a simple daily rhythm, download the PPO Morning Market Checklist and use it to guide your first 20 minutes each day:

• Top 3 market signals to watch
• Key SRP/VDP and age checks
• Quick action items for pricing and merchandising

Download the PPO Morning Market Checklist

Sources

• Cox Automotive — Used Vehicle Inventory & Market Update (October 2025)
• Autovista24 — Further US New-Car Market Decline Expected After Incentive Halt
• iSeeCars / MRT — Study on Best Times of Year to Find Car Deals