Each year, a few major forces emerge that shape dealer strategies across the country. Let’s check in on the impact that the three major themes are having: Tariffs, EV Credits, and AI.
We are already seeing real-time shifts in inventory demand, pricing behaviors, and operational efficiency. These changes aren’t just headlines, they’re reshaping how dealers stock, price, and staff their stores right now. Dealers who understand these shifts and have the right data and tools to react quickly, will be better positioned to stay ahead instead of falling behind.
Let’s take a quick look at what’s going on behind the showroom glass.
Tariffs Are Creating Urgency—and Uncertainty
Recent trade negotiations between the U.S. and EU avoided a worst-case scenario of 25% tariffs on imported cars, settling instead on a 15% rate. As reported by Yahoo Finance, even this lower rate is expected to raise prices for U.S. consumers and disrupt established supply chains. European automakers are already signaling that these costs will be passed on, and the ripple effect will be felt on dealer lots across the country.
For dealership GMs, this volatility turns every decision into a moving target. Inventory plans that made sense last month may be outdated today. Stocking, pricing, and wholesale choices now require constant re‑evaluation as costs shift beneath them. Even small changes in tariffs can squeeze margins, create supply delays, and force stores to adjust on the fly—all while trying to keep customers confident in a market that feels anything but stable.
EV Credits: The Clock Is Ticking
Electric vehicle tax credits are shifting again in 2025, creating another window of opportunity—but it’s a narrow one. According to Plug In America, the federal EV credit—up to $7,500 on new vehicles and $4,000 on used EVs—is now scheduled to end for purchases made after September 30, 2025, much earlier than initially planned.
Consumers and dealers alike are navigating changing eligibility rules, sourcing requirements, and income thresholds. The result? A short-term bump in EV interest, but a long-term need for smarter EV stocking and education.
AI Is Transforming Dealership Efficiency
AI is no longer a buzzword—it’s a performance multiplier. According to a 2025 AI adoption report from Fullpath, early adopters are seeing lead conversions jump over 30% and appointment bookings climb nearly as much in just a few months. With more than 80% of dealers planning to expand AI spending this year, the pattern is clear: automation is enabling smaller teams to close more deals while every customer interaction becomes faster and more targeted.
From smarter inventory sourcing to predictive follow-ups, AI is setting a new baseline for how modern dealerships run. In an upcoming article, we’ll break down the specific ways this tech is reshaping the playing field—and why the gap between AI-driven stores and everyone else is only getting wider.
If there’s one theme emerging in 2025, it’s that fluidity is running the show. Between shifting tariffs, fast-changing EV credit rules, and the rapid rise of AI, most dealers aren’t leading the change—they’re shifting to keep up with it.
This environment rewards those who can react the fastest. The challenge for GMs is no longer just planning; it’s adjusting on the fly as new variables hit their market every month.
That’s exactly where technology like Dealerslink can make the difference. Real-time data, live market pricing, and dealer-direct sourcing give stores the ability to respond to unpredictable conditions without losing their footing—and even find new opportunities in the chaos.
In the next articles in this series, we’ll take a closer look at each of these forces and how dealers can adapt to stay ahead.
