Dealership Deal Trends: December 2025 Through Q1 2026

Skylar Rain

Hey, everyone, welcome back to Auto News Talk! It’s Skylar here with Todd, and wow, December’s used-car numbers really surprised the whole industry—definitely not what folks were expecting for the end of 2025.

Todd Katcher

Yeah, for real. Usually things cool down in December, but this time around, retail sales of used vehicles actually rose 3% year over year. That’s 1.34 million units sold—franchised and independents both saw good movement. And that’s not just a blip, it was 2% up from November, too.

Skylar Rain

Man, I remember scrambling as a GM every December to turn inventory quick—honestly, it was all hands on deck, lot walks in the cold, phone calls, the works. But these numbers almost make this December feel a bit like those rare years when everything clicks. It means even with tight days’ supply, around 49—basically flat to last year—dealers hustled through that inventory.

Todd Katcher

And CPOs didn’t sit it out, either. Certified pre-owned sales estimated at just over 220,800 for December, that’s up about 1.7% year over year, and the whole year hit 2.61 million CPO sales. That’s roughly a 2.1% gain from 2024. So, if you’re running a CPO-heavy store, you probably had a solid year.

Skylar Rain

Yeah, but looking ahead, the outlook’s a little more cautious. Cox Automotive is forecasting just under a 1% dip for used retail sales in 2026—a 0.7% decline to about 20.3 million used sales, and CPO expected to ease a bit, landing right around that 2.6 million mark. So margins could get even tighter.

Todd Katcher

That’s mostly ‘cause supply will stay constrained. Basically, there are fewer cars coming off lease—those new-car production slowdowns from a few years back are still haunting us. I mean, we might get a Q1 bump if tax refunds come in higher than expected, but otherwise, it’s probably gonna feel competitive on both retail and wholesale sourcing through the year.

Skylar Rain

Totally. And don’t bet on prices dropping much in the lower-price bands either. Supply for sub-$15,000 used is moving even faster than the rest, so affordability’s still a challenge for budget shoppers. We’re seeing lean supply, but it’s not like dealers are sitting on a ton of extra cars. Everyone’s fighting for those entry-level units.

Todd Katcher

And on the numbers—days’ supply was about 49 in January, same as December, so it’s not loosening. If this sales pace keeps up, tight conditions may actually stick around. And yeah, there’s always some noise year-to-year, but these vAuto Live Market View data sets are more standardized now, so the trends are pretty solid. If you’re planning for 2026, expect to compete hard for inventory and to try to squeeze every efficiency you can out of the sales process.

Skylar Rain

Exactly. And, honestly, dealers who can manage their turns and acquisitions smartly will come out ahead—I know those year-end pushes take a lot out of a team. Anyway, it’s pretty interesting to see how all this sets up the service lane and fixed ops side of the business, especially with AI changes coming in. Speaking of which…

Todd Katcher

Yup, let’s talk about what’s happening with AI in the service department. Volkswagen of Oakland just shook things up—they actually removed their business development center and put more advisors on the drive, then layered in AI to automate all the routine stuff. I love seeing this kind of experiment.

Skylar Rain

Yeah, and the results are real. By letting AI handle basic scheduling, FAQs, even after-hours coverage, they freed up roughly 40 advisor hours just in two months. That’s a ton of capacity back for actual problem-solving and customer conversations.

Todd Katcher

For sure. I mean, average customers are waiting almost nine minutes to reach a human in service at a lot of stores—so this basically cuts the noise for advisors and gets customers what they need without the phone tag. AI jumps in for simple stuff, but the system knows to escalate real technical questions or diagnostics directly to a trained advisor fast.

Skylar Rain

And the big win? Texting. It totally outperforms outbound calls. In these campaigns, over 30% of folks will actually respond to a targeted, permissioned text about service reminders or recalls. It’s such a breath of fresh air compared to leaving voicemails no one checks. Plus, there’s an actual audit trail—it just makes follow-ups so much easier for both sides.

Todd Katcher

Metrics-wise—this is important—don’t obsess over set or show rates. What matters is minutes saved and missed calls reduced. Responsiveness and coverage are what actually move satisfaction. Automation doesn’t replace advisors, but it raises the bar—customers expect response in seconds, even outside normal business hours.

Skylar Rain

This is where operator buying choices come in. I always tell folks—don’t get blinded by a polished demo. Talk to dealer peers and test live integrations before you sign anything. I know that’s something you do with your tech company, Todd. There’s just no substitute for references who have lived it every day.

Todd Katcher

Absolutely, Skylar. There’s so much fluff in vendor demos, but seeing it in action and hearing from other stores makes the difference. Ultimately, you want your people focused on diagnosing problems—not stuck answering “what time do you close?” calls all afternoon. If you can nail your workflows, consented texting, and escalation rules, you build huge value for both staff and customers.

Skylar Rain

Right—thoughtful division of labor between tech and humans makes all the difference. And honestly, when your fixed ops are humming, it sets you up to capitalize on these bigger trends we’re seeing—especially as big dealer groups keep consolidating and rethinking their operations. Which brings us to something big in New England this week...

Skylar Rain

So this is a deal that got my attention: Artem Boguslavskiy just acquired six Berlin City dealerships up in Gorham, New Hampshire from Alex Gillett. It’s a mix—Toyota, Honda, Nissan, Chrysler, Dodge, Jeep, Ram, Chevrolet, and GMC—all grouped together. That’s five rooftops, but six big franchises under one umbrella.

Todd Katcher

Yeah, and Pinnacle Mergers & Acquisitions advised on the deal. They’ve done a crazy number of these—like 850-plus transactions as a group. Says a lot about the trust and partnership it takes for big, multi-store deals. And sure, rebranding is coming soon, but for now, there’s no immediate shake-up for employees or customers. Just a new name once it’s ready.

Skylar Rain

What stands out here is the scale—having all those mainstream brands clustered together on one campus. It’s more and more common, because you get all kinds of operational efficiencies: shared service ops, shared recon, even community marketing. I actually worked through a campus integration like this a few years ago. It was... let’s just say, a logistical adventure, but, once we synced up systems and teams, the upside was real. Community relationships can actually get a boost in the process—you’re really sticking a flag in the ground as a local anchor.

Todd Katcher

It also gives the group more muscle for sourcing, tech upgrades, and adapting to whatever winds up happening with OEM incentives or inventory. Look, they didn’t disclose the price or any real estate details, and there’s nothing yet on title or signage changes. But the fact that employees and customers won’t see disruption right away? That steadiness is a win, and a sign of good planning. Plus, hanging onto those multiple brands together is great for buyers who want full choice and continuity under one roof.

Skylar Rain

Exactly. And it’s part of a bigger trend—dealers getting scale so they can survive the tight supply, tech investments, and finance changes we've been talking about all episode. If you missed last week’s episode, we actually touched on how these sorts of consolidations and strategic tech investments keep raising the bar. And honestly, I don’t see those trends letting up in 2026.

Todd Katcher

Yeah, we’ve got lots more to cover in the weeks ahead—especially as more M&A deals drop and tech keeps reshaping what it means to run a dealership day-to-day. Skylar, always a pleasure breaking down the week’s news with you.

Skylar Rain

You too, Todd. Thanks for tuning in, everyone. If you want even more detail on the stories we covered, check out Auto News Talk online. We’ll be back next week to break it all down again. Have a great week!

Todd Katcher

Take care, everyone. Skylar, catch you next time!