Dealership Financial Outlook Optimistic: Key Insights on Used Car Financing

Optimism Reigns: The 2025 Kerrigan OEM Survey Insights

The latest Kerrigan OEM Survey has revealed a remarkable sense of optimism among automotive OEM executives toward the future of dealership models. An impressive 78% of surveyed executives expect blue sky values—essentially the future value of dealerships—to remain stable or even see an increase in the upcoming year. This optimism marks a notable rise from last year’s survey where only 68% of dealers shared a similar outlook.

Profitability trends also highlight a positive shift. Two-thirds of the participants predict that dealership earnings will either stay level or grow— a significant leap from the previous year's figure of 46%. This substantial increase indicates growing confidence and adaptability within the dealership space amidst a dynamic automotive market.

The Evolving Role of Dealerships in Customer Relationships

Another crucial finding echoes the evolving yet steadfast importance of dealerships in managing customer relationships. According to the survey, 92% of OEM executives affirm that dealers will continue to play a central role in customer data management and interactions over the next five years. This belief represents a significant sentiment shift from prior years; those advocating for OEMs to take full control has dramatically dwindled from 22% to only 8% in the last two years.

This confidence underscores the value of dealerships in delivering personalized experiences and fostering customer loyalty—a critical element in maintaining a competitive advantage.

Looking to the Future: Financial Implications for Dealers

The financial outlook is equally promising, with 52% of executives anticipating that dealer profits will exceed pre-pandemic levels. A striking 10% predict profits will soar by 25% or more compared to pre-pandemic averages. However, it's essential to consider external factors that could impact these predictions, including trade policies launched during the previous administration. The survey's insights were collected before the implications of tariffs became fully realized, potentially creating a ripple effect in sentiments moving forward.

As OEM executives navigate these changes, understanding factors such as current interest rates on used car financing could be vital. With many seeking the best financing options for used cars, the percentage rates associated with loans are crucial for both dealers and consumers alike.

Key Insights for Dealerships—Navigating Financing Trends

For dealership principals and GMs, keeping abreast of trends in used car financing is more critical than ever. Variables such as average interest rates, typical loan lengths, and current financial products available can significantly influence purchasing patterns among consumers. Investigating options such as low-interest rates on car loans and utilized financing calculators can be key to enhancing sales.

Call to Action: Stay Informed and Prepare for Growth

The optimistic sentiment captured in the 2025 Kerrigan OEM Survey offers a valuable perspective for dealership principals and GMs. To capitalize on this upbeat outlook, it is crucial to stay informed of emerging trends and to actively engage in discussions about customer financing options. By understanding how to refinance auto loans and exploring the best used car financing rates available, dealers can empower themselves and their customers, fostering long-term loyalty and success.