Issue 1 • 2025 REGISTER TODAY! 2025 AADA Convention AADA Legislative Update
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5 PRESIDENT’S MESSAGE A Call to Actively Engage With AADA By Greg Kirkpatrick, President, AADA 6 AADA Legislative Update 8 AADA PAC Making Your Voice Heard 9 Spring Board of Directors Meeting In Photos 10 AADA Grassroots Regional Meetings Recap 12 2025 AADA Convention July 22-25, 2025, Big Cedar Lodge 13 Tee up for the AADA Golf Tournament! July 24, 2025, Buffalo Ridge Springs Golf Course 14 2025 NADA Show Recap 15 F&I Training 16 Price it Right Tariffs and Truth-in-Pricing By ComplyAuto 18 Don’t Settle for Automatic Warranty Labor Rate Increases A Smarter, More Profitable Alternative By Jordan Jankowski, Chief Operating Officer, Armatus Dealer Uplift 20 AADA Endorsed Products & Services Directory 22 Arkansas Auto Outlook ©2025 The Arkansas Automobile Dealers Association (AADA) | The newsLINK Group LLC. All rights reserved. Arkansas Auto Dealer is published four times per year by The newsLINK Group LLC for AADA and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of AADA, its board of directors or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. Arkansas Auto Dealer is a collective work, and as such, some articles are submitted by authors who are independent of AADA. While a first-print policy is encouraged, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at (855) 747-4003. 4 Arkansas Auto Dealer
PRESIDENT’S MESSAGE Dear Arkansas Automobile Dealers, Reflecting upon a very successful legislative session this year, more than ever, I was reminded that the Arkansas Automobile Dealers Association is only as strong as the collective engagement of each dealer. Your active participation isn’t just welcomed — it’s the cornerstone of our continued success and the driving force behind every victory we achieve for our industry. When dealers across Arkansas choose to actively engage with our association, remarkable things happen. Committee meetings become dynamic forums where real solutions are born. Legislative advocacy efforts gain the credibility and momentum that only comes from unified voices speaking with authority. Professional development programs evolve to meet the actual needs of dealers because those needs are being articulated by the very people who face them daily. This is the power of member engagement, and it’s what sets successful associations apart from those that merely exist. Your involvement creates a ripple effect that extends far beyond individual participation. When you attend the annual convention or our recently completed regional grassroots meetings, you’re not just staying informed — you’re contributing insights that shape our strategic direction. When you participate in our advocacy efforts, you’re not just supporting a cause — you’re lending your credibility and expertise to protect and advance the interests of every dealer in Arkansas. The challenges facing our industry today require more than passive membership. From evolving consumer expectations and technological disruptions to regulatory changes and market fluctuations, the automotive retail landscape continues to transform at an unprecedented pace. As we look toward the future, I encourage each of you to find new ways to engage with our association. Whether through the Board of Directors and committee service, event attendance, mentoring newer dealers or simply participating more actively in association communications, your involvement strengthens us all. The Arkansas Automobile Dealers Association exists to serve you, but it can only fulfill that mission effectively when you help guide and support our efforts through your active participation. Thank you for your continued membership and for considering how you might deepen your engagement with our association in the year ahead. Together, we’ll continue building an association that truly represents and advances the interests of Arkansas automobile dealers. Greg Kirkpatrick President, AADA A CALL TO ACTIVELY ENGAGE WITH AADA 5 Arkansas Auto Dealer
AADA Legislative Update After convening for a little more than three months, the General Assembly adjourned sine die on May 5. AADA entered the legislative session with an incredibly aggressive plan, and overall, we were very successful. We cannot thank each dealer enough for their work in making AADA a strong force at the Capitol. AADA LEGISLATIVE PACKAGE Lease Reform A key victory for AADA this session was the comprehensive lease reform bill we were able to pass. This legislation will be critical for dealers moving forward, especially as vehicle prices continue to rise and EVs continue to sit on lots. The need for lease reform was obvious: 1. Currently Arkansas is not competitive for leasing vehicles, with the lowest lease penetration rate in the country. 2. EVs are a more attractive lease option for some consumers. 3. Vehicle prices are extremely high. 6 Arkansas Auto Dealer
4. Ford dealers were especially uncompetitive because Ford adds a 25% mark-up to each monthly lease payment for the purpose of remitting personal property taxes. 5. Leasing was very confusing in Arkansas for consumers, dealers and DMV employees. HB1960, now Act 1013, by Rep. Wardlaw fixes a number of key problems with leasing in Arkansas: 1. Act 1013 makes the lease process similar to the vehicle purchase process. 2. Act 1013 clarifies that the lessee is responsible for assessing and paying personal property taxes rather than the lessor. 3. Act 1013 caps the local sales tax at $2,500, similar to a vehicle purchase. These items should make leasing a much more attractive option for dealers and consumers. AADA is committed to providing training for both dealers and state employees on vehicle leasing. Dealer Extra Tags Arkansas dealers faced a very concerning problem following a March 28, 2024, split decision by the Arkansas Supreme Court. Reversing a Circuit Court decision, the Supreme Court ruled that use of vehicles in a dealership’s inventory with dealer’s extra license plates by persons not authorized by statute or rule to use these plates amounts to a withdrawal from stock or use and will trigger assessment of sales tax based on the value of the vehicle. For background: During routine tax audits, two Arkansas dealers were assessed sales tax for alleged misuse of dealer extra license plates. The sales tax assessments were appealed, and the Circuit Court reversed DF&A’s assessments of sales tax. DF&A appealed that decision to the Arkansas Supreme Court. DF&A’s position was the use of vehicles with dealer’s extra license plates by persons not authorized by statute or rule to use them amounts to “withdrawal from stock or use” of the vehicles within the meaning of Ark. Code Ann. § 26-52-322, thus giving rise to the gross receipts tax based on the value of the vehicle. The Supreme Court ultimately agreed with DF&A. This decision opened up an enormous amount of financial exposure for dealers. Additionally, the only clear way to fix this problem was legislatively. AADA Solution: First, HB1688, now Act 710, by Rep. Cavenaugh and Sen. Stone, has two key provisions: • Act 710 updates the eligible users and uses for dealer extra license plates by updating the definition of manager and adding to the provisions regarding allowable uses. • Act 710 also specifically states that the use of a dealer extra license plate does not constitute a withdrawal from stock and is therefore exempt from Arkansas use tax. Second, HB1834, now Act 816, adds a right of action for the Motor Vehicle Commission to deny, suspend or revoke a dealer’s license issued by the Commission in the event a dealer misuses a dealer extra license plate by allowing a non-eligible user to drive on this license plate. This bill was critical in order to alleviate concerns that there was no penalty for dealers misusing extra tags. AADA will issue more guidance on dealer extra tag use as a result of this bill. Electronic Registration and Titling Arkansas dealers have long needed a solution to allow for electronic signatures on key forms and to digitally upload customer paperwork. HB1845, now Act 926, by Rep. Holcomb and Sen. Hill, is a permissive bill that allows DF&A to establish an electronic registration and titling system that will allow dealers in Arkansas to digitally upload customer documents with the goal of ultimately speeding up the registration and titling process. BILLS AND ISSUES AADA OPPOSED Dealers Collecting Sales Tax (Temporary Tag Reform) Expired temporary tags on the highways are a common source of frustration for many Arkansans. There were several reform efforts to address this issue, but one that AADA opposed was an effort by Rep. Perry with HB1968 that would have required dealers to collect sales tax on vehicles at the point of sale. Additionally, this bill would have required consumers to pay the full sales tax amount of their vehicle purchase and file for a rebate in order to get the tax credit for the trade-in. For a variety of reasons, including the fact that dealers collecting sales tax would have no impact on the number of expired temporary tags on vehicles, Rep. Perry moved this bill to interim study. We anticipate it will come back next session. Factory Sales Heading into the legislative session, we were preparing to oppose a factory sales bill similar to the one filed last session, as that bill’s sponsor indicated this was a certainty. Through the hard work of many dealers, we were able to fend off this issue and avoid a fight this session. This issue will remain a fight in future sessions. 7 Arkansas Auto Dealer
AADA PAC AADA is kicking off a capital campaign for 2025 to raise money for our PAC. Whether intended or not, the government continues to have significant control over the operation of a dealership, the profitability of the business and potential liabilities for dealers. The Arkansas Automobile Dealers Association Political Action Committee (AADA PAC) was created to help communicate the importance of franchise dealers in communities across the state to those running for and currently holding political office in Arkansas. It is more important than ever for AADA PAC to be actively engaged with our legislators as we work for critical changes and updates to the Arkansas franchise laws. Since AADA PAC focuses on in-state leaders, money that dealers donate to the PAC will stay close to home and allow dealers to stay connected with their local elected officials. Building and growing these relationships is critical to the future success of AADA. As a reminder, the limit to PACs has been raised to $10,000 per calendar year, and your dealership can donate directly to AADA PAC. Keep an eye out for more information on this important effort, and we truly hope you will consider joining us in this effort! REBUILD WHAT’S BROKEN — DEFEAT COSTLY LEGISLATION — SAFEGUARD AGAINST BURDENSOME REGULATION To learn more or to donate, please visit www.aadaonline.com/aada-pac or reach out to Greg Kirkpatrick at (501) 372-2596. Making Your Voice Heard Does your CPA firm help drive your business forward? hhmdealership.com Dealerships need the specialized services of a committed and independent CPA firm with a proactive approach to enhancing business and fueling growth. HHM is that kind of firm. 8 Arkansas Auto Dealer
Spring BOARD OF DIRECTORS MEETING IN PHOTOS 9 Arkansas Auto Dealer
AADA GRASSROOTS REGIONAL MEETINGS Recap The spring Grassroots Regional Meetings have taken place across the state. We held seven meetings with our dealers to talk about the work AADA is doing. Many productive conversations were had about the recent legislative session, as well as a deep dive into the challenges that our industry is facing. Items discussed included the impact of tariffs, legislative changes for 2027 — such as no sales on vehicle rebates and an increase in the service and handling fee — and changes in federal Zero Emission Vehicle (ZEV) policy. 10 Arkansas Auto Dealer
20 25 AADA CONVENTION July 22-25, 2025 Big Cedar Lodge It’s almost time for the annual convention, and we couldn’t be more excited to welcome you to the Big Cedar Lodge in Ridgedale, Missouri! Spots are filling up quickly, so don’t delay — convention registration closes June 20. REGISTER TODAY! https://members.aadaonline.com/ap/Events/ Register/2JFNXBVu3CNCz Networking receptions, social events for the entire family, pontoon rides, golf tournament, vendor exhibitions and so much more! Keynote Speakers • Paula Mashburn and Lee Ferguson, HHM CPA’s • Dave Ciambella, Rawls Group • Kevin Horn, Forvis Mazars • Joe Mowery, Stephen’s Inc. SPONSORSHIP OPPORTUNITIES AVAILABLE, VISIT AADAONLINE.COM TO LEARN MORE. WE LOOK FORWARD TO SEEING YOU ALL THERE! 12 Arkansas Auto Dealer
Tee up FOR THE AADA GOLF TOURNAMENT! July 24, 2025 Buffalo Ridge Springs Golf Course 1001 Branson Creek Blvd. Hollister, Missouri $225 per person REGISTER TODAY! https://members.aadaonline.com/ap/ Events/Register/2JFNXBVu3CNCz 13 Arkansas Auto Dealer
NADA SHOW 2025 Recap Roger Smart represented Arkansas as AADA’s 2025 TIME Dealer of the Year during the NADA Show in New Orleans this past February. Congratulations, Roger! 14 Arkansas Auto Dealer
F&I As the automotive industry gears up for the peak selling months, there’s a sense of renewed purpose and momentum coming off the heels of last month’s Elite Training Seminar, hosted by The Versant Group. The seminar brought together some of the top minds and rising talent in F&I for two days of high-impact training, collaboration and performance-driven strategy. The sessions focused on sharpening fundamentals while introducing new tools like the VIP presentation sheet, a game-changing asset that’s boosting product penetration across partner dealerships. But perhaps the most valuable takeaway wasn’t found in any slide deck or word track. It was the collective mindset of excellence, discipline and hunger to grow. Feedback from attendees has been overwhelmingly positive. Participants walked away not only with actionable skills but also with a clearer sense of how to lead with intention and drive value in every deal. That’s what makes Elite different — it’s not just training, it’s transformation. As we enter the heart of the selling season, the message is clear: We’re not just chasing numbers; we’re building momentum. The months ahead are full of opportunity, and those who continue to apply what they learned at the Elite Training Seminar will no doubt set themselves apart. The Versant Group is proud to walk alongside its partners and help fuel what’s next. This is more than a season — it’s a launchpad for lasting success. Training 15 Arkansas Auto Dealer
PRICE IT RIGHT Tariffs and Truth-in-Pricing By ComplyAuto A wave of pending tariffs on imported vehicles and parts is reshaping pricing dynamics across the automotive industry. Some OEMs have announced they are adjusting MSRPs, supply chains are shifting, and inventory pressure is building. In the middle of it all, dealers face a critical challenge: how to explain potentially rising prices without making legally risky claims. It’s tempting to point to tariffs since tariffs are in the headlines and on customers’ minds. Not only is this a potentially risky strategy from a public relations perspective, it also raises potential regulatory risks for the dealership. Basically, unless a dealership knows that a specific vehicle’s price increase is directly tied to a tariff, advertising a price increase based on “tariffs” can trigger a deceptive advertising claim under Section 5 of the FTC Act and various state advertising laws. ADVERTISING CLAIMS AND ATTRIBUTION When vehicle prices rise, dealerships often feel compelled to explain why. And in a high-tariff environment, some are tempted to attribute a price increase or a market adjustment to a tariff. That’s where trouble begins. According to the FTC, price advertising must be truthful, non-deceptive and substantiated. Any claim made in an advertisement, including the reason for a price change, must be truthful, not misleading and supported by evidence. States also have similar requirements for advertising. For example, under the Maryland Consumer Protection Act, a dealer may not falsely attribute a price increase to tariffs if the claim misleads consumers or omits material facts, such as the absence of any actual tariff-related cost increase. Here’s the takeaway: If your dealership states or implies that a vehicle is more expensive because of a government-imposed tariff, you must be able to prove that the tariff directly affected the cost of that specific vehicle. General market conditions, assumptions or headlines are not enough. WHAT THIS MEANS FOR DEALERSHIPS If you’re considering messaging like “prices adjusted due to tariffs” in your showroom, on your website or in digital ads: pause. These 16 Arkansas Auto Dealer
claims may seem harmless, but they raise significant regulatory and legal red flags. TARIFF MESSAGING MUST BE SUBSTANTIATED Dealers are free to raise or lower prices in response to supply, demand or margin pressure. But the FTC and state AGs expect substantiation for any claim about why a price changed. That means you need to be able to show a direct relationship between a tariff and the price increase. Saying “this vehicle’s price increased due to tariffs” implies that you know the cost impact. If the vehicle wasn’t subject to a tariff, or if the price increase was due to something else, that claim becomes misleading. NOTE, HOWEVER — many state laws strictly regulate dealer fees, or “doc” fees and these fees may be the only type of fee a dealer may be legally permitted to add to a vehicle price. Adding a “tariff fee” — even if substantiated — may implicate these state fee regulations, and dealers should exercise caution before adding this or any other fee to the price of a vehicle. REMEMBER — “ADVERTISEMENTS” INCLUDE MORE THAN JUST WEBSITES The definition of “advertisement” under federal (and most state) law is so broad that basically any discussion of a vehicle or a price with a consumer can be considered an advertisement. That includes vehicle display pages, email price quotes, social media and virtually any other form of consumer communication. Remember, even statements made verbally to consumers about tariffs (or any other material price term) could be deemed deceptive if inaccurate and substantiated. MADE IN THE USA CLAIMS: A HIGH STANDARD One related potential issue in this context are claims about domestic manufacture of vehicles — whether related to tariffs directly or not. Some OEMs and dealers may lean into patriotic messaging which highlights vehicles as “Made in America.” But, the FTC’s “Made in the USA” standard is strict: To lawfully make an unqualified U.S.-origin claim, a product must be “all or virtually all” made in the United States. That includes parts, processing and assembly. Final assembly alone isn’t enough if key components come from abroad. Dealers repeating or amplifying origin claims should verify the claim’s accuracy. False U.S.-origin claims can violate Section 5 of the FTC Act and lead to enforcement actions, even if the original claim started with the manufacturer. For a deeper dive on this issue, see ComplyAuto’s guide, “Navigating Made in the USA Claims in Dealership Advertising,” by scanning the QR code. https://complyauto.com/ 2024/01/03/navigatingmade-in-the-usa-claims-indealership-advertising/ ACTION ITEMS FOR DEALERSHIPS To navigate these risks, dealerships should: • Review all advertising content to ensure no price increase is attributed to tariffs unless verifiably true (and consistent with state dealer fee laws). • Train staff to avoid speculative or generalized pricing explanations tied to tariffs or government action, or conversely, any promises about “Made in the USA” or domestic content, in the context of tariffs or otherwise. • Audit website, social and BDC communications to ensure FTC-compliant language. • Avoid phrases like “due to tariffs,” “government-mandated,” “new surcharge” or “made in America,” unless legally accurate. Remember, advertising law hinges on consumer perception. If a customer could reasonably believe that a price you are advertising or charging is higher because of a tariff, and that’s not factually true, you’ve got a potential compliance problem. Price freely, but message carefully. COMPLYAUTO CAN HELP ComplyAuto offers the tools and guidance dealerships need to stay compliant in shifting regulatory environments. From real-time ad review and policy vetting to F&I deal accuracy and staff training, we help you stay out of trouble while focusing on your bottom line. With compliance automation, policy insight and cutting-edge risk detection like Guardian, along with powerful tools like DealCheck AI, ComplyAuto gives you peace of mind and the confidence to price it right. Reach out today to learn more by scanning the QR code. https://complyauto.com/ schedule-demo/ 17 Arkansas Auto Dealer
DON’T SETTLE FOR AUTOMATIC WARRANTY LABOR RATE INCREASES A Smarter, More Profitable Alternative As inflation continues to impact every corner of the retail automotive industry, many manufacturers continue to offer dealers CPI-based (Consumer Price Index) programs to automatically increase their warranty labor reimbursement rates each year. At first glance, these CPI programs seem like an enticing offer. After all, the programs offer annual increases tied to inflation and relieve the burden of having to submit a warranty labor rate increase each year. However, most of the time, these programs will result in a much lower warranty labor rate than your customer pay rate. Before you sign on the dotted line, it’s important to understand the real cost of settling for CPI — and how state law may entitle you too much more. THE CATCH WITH CPI‑BASED PROGRAMS CPI-based programs give the manufacturer full control over the rate increase calculation. Historically, these programs yield only 2-3% increases annually — a modest adjustment that rarely keeps pace with the real-world cost of parts, technician wages and service department overhead. Even more concerning: Once you agree to participate in a CPI program, you may be locked out of pursuing a statutory labor rate submission for a period of time, some programs require as much as a three-year commitment. Signing up is effectively waiving your right to pursue a more lucrative, data-driven rate under state law. WHAT’S THE ALTERNATIVE? STATUTORY LABOR RATE SUBMISSIONS Thanks to retail warranty reimbursement laws across the country, franchised dealers have the ability to submit for warranty labor rate increases based on their actual customer-pay rates. These statutory submissions consistently outperform CPI programs, and they put control back where it belongs, in the hands of the dealer. Every dealer should be evaluating whether it is advantageous to complete a factory or statutory labor rate submission annually; in nearly every case, a statutory submission is the dealer’s best bet to get compensated at its retail rate. On average, dealers see increases in their labor rate that translate into tens — or often hundreds — of thousands of dollars in additional annual gross profit by submitting a statutory submission. These gains are available to dealers across virtually all major brands and are typically unattainable when enrolled in a CPI Program. By Jordan Jankowski Chief Operating Officer, Armatus Dealer Uplift 18 Arkansas Auto Dealer
WHY MORE DEALERS ARE SAYING “NO THANKS” TO AUTOMATIC INCREASES CPI-based programs are designed to appear convenient — but convenience often comes at a steep long-term cost. Here’s why dealers are increasingly rejecting automatic increases in favor of statutory submissions: • Larger Increases: Statutory rates reflect actual customer-pay averages, not arbitrary manufacturer formulas. • Greater Profitability: Higher rates mean more gross per RO, better technician retention and improved service absorption. • Dealer Control: You decide when and how to pursue your rate — not the OEM. MAKE AN INFORMED CHOICE: YOUR BOTTOM LINE DEPENDS ON IT If you’re being asked to opt into a CPI program this year, pause and evaluate your options. In most cases, a statutory labor rate submission yields significantly higher returns — and safeguards your right to be fairly compensated for the work your team performs every day. Choosing how you increase your warranty labor rate isn’t just a paperwork decision — it’s a strategic one that directly impacts your dealership’s profitability. Don’t let convenience come at the cost of control or revenue. Before locking into a long-term CPI program, explore your statutory rights and understand what your customer-pay data truly supports. With the right guidance and a data-driven approach, you could be earning significantly more — month after month. At the end of the day, in most cases, the smarter path is the one that puts you, not the manufacturer, in the driver’s seat. Jordan Jankowski is the chief operating officer at Armatus Dealer Uplift. He has played a key role in consulting on 21 warranty reimbursement laws across the country and is widely considered a subject matter expert in this highly technical arena. Jordan manages a team of over 60 people, who produces thousands of retail warranty reimbursement submissions each year. To learn more about Armatus, visit www.dealeruplift.com. 19 Arkansas Auto Dealer
AADA ENDORSED PRODUCTS THE VERSANT GROUP Lee Martinez/Joe Lantham (318) 934-3121, (501) 838-9717 lee.martinez@theversantgroup.com joe.lantham@theversantgroup.com F&I products, service, income development and training. FEDERATED INSURANCE COMPANY Amir Madani (828) 407-3211 amadani@fedins.com Garage liability, property and casualty insurance. REYNOLDS & REYNOLDS Richard McClain (501) 269-1593 richard_mcclain@reyrey.com Over 4,000 computer business forms, including the LAW F&I Library and customized forms. JTS FINANCIAL SERVICES Charles Angel (501) 227-0194 charles.angel@jtsfs.com Employee benefits, health insurance and human resources. ARMATUS DEALER UPLIFT Jordan Jankowski (443) 391-5702 jordanj@dealeruplift.com Armatus Dealer Uplift is the largest provider of Retail Warranty Reimbursement submission services in the country. COMPLYAUTO Lauren Bailey (661) 213-9054 lauren.bailey@complyauto.com The only true “all-in-one” compliance solution. AMERICAN FIDELITY Steve O’Kane (913) 486-7005 steve.o’kane@americanfidelity.com Benefit plans that include long- and short-term disability, Section 125, cancer and more. 20 Arkansas Auto Dealer
CAADSSIF (CENTRAL ARKANSAS AUTOMOBILE DEALERS SELECTIVE SELF-INSURANCE FUND) Kim Martin (501) 372-2596 kmartin@arkautodealers.com Workers’ compensation insurance and group self-insured program. CAADSSIF has returned over 60% of surplus premiums annually. AADA FORMS COMPANY (501) 372-2596 frontdesk@arkautodealers.com Dealership forms, such as odometer statements, TIMA forms, etc. Shipped through UPS for fast delivery. AADA QUICK TITLE SERVICE Jennifer Curlin (501) 372-2596 jcurlin@arkautodealers.com Title service, duplicates, corrected titles, transfers and title and registrations. Usually provided within a week. Assistance with “suspense” files is also available. FINANCE DIRECTOR Kim Martin kmartin@arkautodealers.com Billing/Payment Inquiries Accounting/Payment Systems Director MEMBER SERVICES DIRECTOR Katrina Burnett kburnett@arkautodealers.com Website Content and Info Hub Event/External Affairs Communications Director TITLE & REGISTRATION DIRECTOR Jennifer Curlin jcurlin@arkautodealers.com PRESIDENT Greg Kirkpatrick ARS (ARKANSAS REGISTRATION SERVICES) Kim Martin/Jennifer Curlin (501) 372-2596 info@arstemptags.com State-approved vendor for the web-based SecureETag Temporary Tag System. Allows dealers to provide their customers with paper temporary tags as required by law. AVIS (ARKANSAS VEHICLE INFORMATION SYSTEM) Jennifer Curlin (501) 372-2596 jcurlin@arkautodealers.com The service allows for direct access to the DFA Motor Vehicle Web Portal to file direct liens and perform vehicle inquiries. Franchise dealers, banks, credit unions and finance companies qualify for this unique program. & SERVICES DIRECTORY 21 Arkansas Auto Dealer
93,103 100,155 108,637 107,100 2022 Actual 2023 Actual 2024 Actual 2025 Baseline Forecast First Quarter 2025 Released April 2025 Market Summary Forecast for State New Retail Light Vehicle Registrations DOWN 20.0% vs. ‘21 UP 7.6% vs. ‘22 UP 8.5% vs. ‘23 DOWN 1.4% vs. ‘24 Arkansas Auto Outlook Coverage of the Arkansas new vehicle market TM YTD '24 YTD '25 % Chg. Mkt. Share thru Mar. thru Mar. '24 to '25 YTD '25 TOTAL 24,934 29,144 16.9% Car 3,494 3,517 0.7% 12.1% Light Truck 21,440 25,627 19.5% 87.9% Domestic 12,152 15,263 25.6% 52.3% European 1,342 1,591 18.6% 5.5% Japanese 8,632 8,537 -1.1% 29.3% Other Asian 2,808 3,753 33.7% 12.9% The graph above shows annual new retail light vehicle registrations from 2022 through 2024, and Auto Outlook’s baseline projection for 2025. Historical data sourced from Experian Automotive. Domestics consist of vehicles sold by GM, Ford, Stellantis (excluding Alfa Romeo and FIAT), Tesla, Rivian, and Lucid. Other Asian includes Genesis, Hyundai, Kia, and VinFast. Data sourced from Experian Automotive. FORECAST Outlook for 2025 is Clouded Due to Tariffs Outlook for Arkansas New Vehicle Market Baseline Forecast Key assumptions: tariffs are scaled back somewhat from current rates but remain above prior levels; vehicle prices increase by no more than 5%; minimal interest rate cuts by the Fed; inflation drifts higher; and economic growth slows. Forecast: 107,100 units, down 1.4% vs. ‘24 Alternative Upside Forecast Key assumptions: tariffs are largely removed and revert to prior levels; vehicle prices remain stable; several interest rate reductions by the Fed; inflation eases; and economic growth improves as the year progresses. This is similar to the forecast projection in January of this year. Forecast: 112,400 units, up 3.5% vs. ‘24 Alternative Downside Forecast Key assumptions: tensions escalate and tariffs are increased; vehicle prices surge by roughly 10%; no interest rate cuts; inflation accelerates; and the economy enters recession. Forecast: 99,800 units, down 8.1% vs. ‘24 There is heightened uncertainty for the new vehicle sales outlook in 2025. Some tariffs were dialed back in early April, but automotive and raw material tariffs are still in place, and the trade scenario is far from settled. Below are three scenarios for the forecast incorporating varying assumptions for tariffs and economic outcomes. Below is a review of key trends in the state new vehicle market. Market got off to a strong start in First Quarter of this year State New retail light vehicle registrations increased 16.9% in the First Quarter of 2025 versus a year earlier, well above the 4.2% improvement in the U.S. As shown on page 2, U.S. equivalent SAAR levels in the state were 17 million units in 1Q ‘25. Outlook for rest of year is clouded Pent-up-demand, combined with improvements in affordability were expected to propel the market in 2025. However, the potential overhaul of U.S. trade policy has added significant unknowns into the new vehicle sales outlook. The sidebar on the right presents three forecast scenarios for state new vehicle registrations this year, incorporating varying assumptions for tariff policies and economic outcomes. After the events of the past few weeks, it’s safe to say that things are likely to change, so stay tuned. Battery electric vehicle share remains low BEV market share in Arkansas was just 2.2% in the First Quarter of this year, up from 1.7% a year earlier, but down slightly from the Fourth Quarter of last year. Nationwide, battery electric vehicles accounted for 9.6% of industry registrations Buick is strong performer in state Small SUV segment; Cadillac stands out among Mid and Full Size Luxury SUVs As show on page 4, Buick accounted for 7.1% of the state Small SUV segment, well above its 2.6% share in the Nation. Cadillac was a relatively strong performer in the Mid and Full Size Luxury SUV segment. 22 Arkansas Auto Dealer
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