EPISODE RECAP & SUMMARY
The year 2025 is shaping up to be pivotal for the automotive industry. From looming tariffs to a potential wave of AI adoption, there’s no shortage of changes that could affect how dealerships connect with customers. In this episode of Leadership in the Dealership, hosts Don, Danielle and Keishawn take a hard look at what’s on the horizon—and how dealers can stay one step ahead.
Tariffs & the Price of Vehicles
One of the biggest potential shake-ups in 2025 is the possibility of 25 percent tariffs on vehicles and parts. If implemented in the second half of the year, this would likely drive up costs for both dealerships and consumers—not just in new car pricing, but service and maintenance too. While there’s still some time before it hits, it pays to be prepared for supply chain hiccups and price sensitivity.
Rate Decreases & Affordability
On a more optimistic note, the Federal Reserve may lower interest rates again—possibly twice more—to help offset any negative impacts from tariffs and keep the economy on an even keel.
As we saw during the pandemic, dealerships are no strangers to adapting quickly, and 2025 will be no exception. With affordability still a top priority for buyers, being flexible and creative in financing could be a major differentiator.
Enter the Era of GenAI
AI remains a hot topic as 2024 winds down, but 2025 might be the year it really takes flight in auto retail. From automating follow-ups and repetitive workflows to improving the underwriting process, GenAI tools could significantly streamline dealership operations.
The result? Sales teams can devote more energy to delivering standout customer experiences and building relationships—rather than getting bogged down in paperwork.
2025: A Balanced Approach
Amid these potential challenges, our hosts predict 2025 will be a year of balance—where automakers and dealerships work hard to find the sweet spot between innovation and tried-and-true strategies. Hybrid solutions can help reduce range anxiety, AI can complement (not replace) human interactions, and a customer-first mindset keeps people coming back for more.
Whether it’s tariffs, rate changes or the next wave of AI, there’s no doubt 2025 will bring both uncertainty and excitement. Tune in to this Leadership in the Dealership episode for a deep dive on how to keep your dealership resilient and your customers engaged—no matter what the future holds.
Stay tuned for new episodes every other week on the Leadership in the Dealership Podcast.
