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Tariffs & Inventory: What’s Driving the Shift in America’s Car Market?

Scan Solutions

Jul 22, 2025

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As trade tensions escalate, so do the stakes for dealerships nationwide. The recent wave of tariffs — including a 25% duty on imported vehicles and parts — is reshaping both new and used car inventory levels in ways that demand attention.


New Car Inventory: The Pull-Ahead Effect

 -Pre-tariff buying surged in Q2 2025, with consumers rushing to lock in prices before increases took hold. This led to a temporary boom in sales — averaging 1.17 million units per month — but it came at a cost.

 -Inventory levels dropped from 3.27 million units in Q4 2024 to just 2.84 million in Q2 2025.

 -Replenishment is lagging, especially for higher-priced segments like full-size trucks and XL SUVs. Manufacturers are pivoting toward midsize and compact SUVs to soften sticker shock.



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Used Car Market: Demand Heats Up

As new car prices continue to rise, more buyers are turning to used vehicles, driving wholesale prices up by 6.3% year-over-year—the largest increase since 2022. This shift is being compounded by a shrinking supply of off-lease vehicles and fewer trade-ins, leading to tighter inventory and intensified competition among dealers. Notably, electric and luxury used vehicles are experiencing the sharpest price gains, while compact cars have remained relatively stable.




Stay Ahead of the Uncertainty

With no end in sight to fluctuating tariffs, dealerships across the country are grappling with ongoing uncertainty. From unpredictable parts pricing to challenges in vehicle sourcing, the ripple effects are making inventory planning increasingly complex. Now more than ever, it's essential to track your inventory efficiently to stay ahead of supply chain disruptions and maintain profitability.

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Exciting News!

Scan Solutions development team has been working effortlessly to get rid of the “Sync Scanner” feature on the user interface and scanner. Expected launch near end of 2025! Ask our support team for updates.



No More Syncing—Parts Wizard Is Now Always Up to Date!

That’s right, your scanner will now pull live data instantly after each download, giving you real-time accuracy without the wait.


What’s Changing?

-Intelligent Auto-Sync:

Every scan reflects the most current data-no manual syncing required. Running multiple scanners? No problem, they’re always on the same page.

-No more “done scanning”:

As system users, we’re all familiar with the current process—if the scanner disconnects, we must manually reconnect it to complete the sync. With the sync being eliminated, this extra step will no longer be necessary. Making your mornings even faster!


Looking Ahead

This is just one of many upgrades coming from Scan Solutions to power

smarter, faster inventory management. Ensure your system is updated to take advantage of this enhanced scanning capability once it is available!

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