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Surge in Vehicle Sales Amid Rising Tariff Concerns

In March 2025, the automotive market witnessed an unprecedented spike in both new and used vehicle transactions, with new vehicle sales surging by 38% month-over-month. This increase can be attributed to a combination of factors including more selling days, tax season boosts, and, most crucially, growing consumer apprehension regarding impending tariffs on vehicles and automotive parts.

According to ZeroSum's latest report, this surge in demand was particularly pronounced, with tariff fears reportedly contributing an additional 153,000 sales to the overall vehicle count for the month. The strong uptick in sales reflects a notable shift in consumer behavior, as shoppers appear to be acting preemptively in light of the economic uncertainties posed by potential tariff implementations.

On the used vehicle front, sales saw a remarkable increase of 32% month-over-month, bringing the total to an impressive 1.53 million units sold—the highest monthly total recorded since ZeroSum began tracking this data seven years ago. Josh Stoll, Vice President of Dealer Success at ZeroSum, pointed out that the sentiment surrounding tariffs has transitioned from a vague concern to a pressing reality, spurring consumers to make faster purchasing decisions.

Pricing Trends

This surge in sales comes against a backdrop of rising vehicle prices. After a five-month lull, the average market price for new vehicles climbed from $48,635 in February to $49,579 at the end of March, marking an increase of $944. A contributing factor to this price rise includes a reduction in discounts and incentives, as seen by a $432 decrease in market adjustments compared to the previous month.

In parallel, the demand for used vehicles has led to substantial price increases in that segment as well, with average marketed prices rising by $988 between February and March. Stoll emphasized that the current numbers suggest that used vehicles are being viewed as a viable alternative for consumers grappling with rising new vehicle costs.

Strategic Implications for Dealers

Given the current market dynamics, Stoll highlighted the importance for dealers to closely monitor both supply and demand metrics, as well as the shifting pricing landscape. He stated, "Dealers who adeptly navigate these market fluctuations will be better positioned to endure in these tumultuous times."

To capitalize on the current demand, dealers are encouraged to promote their used vehicle inventory more aggressively. With potential price increases for new vehicles on the horizon, it’s crucial for dealers to competitively price their used stock to effectively attract consumers in search of affordable alternatives.

About ZeroSum

ZeroSum is renowned for its innovative inventory-based market intelligence solutions tailored to automotive dealers, utilizing advanced analytics and digital advertising techniques. As the primary source for insights into the automotive sector, the