The U.S. automotive industry likely faces a “hangover” as prices rise and new vehicle sales remain flat, according to ZeroSum’s July 2025 State of the Dealer report.
Many of the same trends and patterns will likely show up in the Canadian market.
The company provides inventory-based market data and digital advertising solutions geared towards dealers. In a news release, they said the potential “hangover” comes after nearly three months of strong sales due to “tariff-related pull-ahead demand.” The result, they added, is that dealers will need to focus more on used and certified used vehicles to get their profits in July.
“June proved to be a continuation of recent trends, with reduced inventories, elevated vehicle movement and turn rates, and higher pricing,” said Josh Stoll, Vice President of Dealer Success at ZeroSum, in a statement. “But with half a million pull-ahead sales and tariffs a continuing reality, we are expecting the summer months to exhibit some ‘hangover’ effects that will make new vehicle sales more challenging going forward.”
According to the company, the Average Marketed Price (AMP) for used vehicles rose from $26,258 in May to $26,681 in June — up $423 month-over-month. At the same time, average certified used vehicle prices climbed from $37,716 in May to $38,036 in June. “Price hikes appear to be reflective of increased demand for these vehicles as tariffs continue to roil the new vehicle sector,” they said.
The AMP for new vehicles was flat month-over-month at $49,614. However, ZeroSum also noted that this masked retail price increases on two of every three models in the marketplace. To counter these increases, they said OEMs focused on building more vehicles in lower priced segments.
“The recent shift towards lower priced segments on the part of OEMs gives consumers some more affordable alternatives to choose from, but that is not likely to overcome the bigger macro-trends that will play out in the next 30 to 90 days,” said Stoll in a statement.
