2025 turned out to be a solid year for auto retailers, with profitability steady even as Q1’s strong sales softened over the balance of the year. 2026 looks to be more of the same, supported by an uptick in overall economic growth predicted for the year. Vehicle affordability is a risk dealers will be watching throughout the year. According to Mike Skordeles, head of U.S. economics at Truist Advisory Services Inc., “The overall economy has been muddling through 2025, but we see indications for an uptick in growth fueled by four big factors: changes to tax policy, marginally lower borrowing costs, and more stability on the trade policy and tariff front, along with continued investment in AI and technology spending.” Economists Expect Another Strong Year for Auto Retail Favorable Conditions Across Both the New- and Used-Car Markets Sustain Dealer Profitability By Truist Dealer Services CATA UP TO SPEED 23
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