It’s no secret that 2025 is off to a tough start for auto dealers. February sales are down year over year, and for many, it is shaping up to be one of the hardest first quarters in recent memory. The economy has shifted, consumer behaviors have changed, and yet some dealers are still crushing it.
The difference? They are adapting.
Many dealers we talk to (and the phone and emails are flying) are frustrated, seeing lower traffic, fewer sales, and more hesitant buyers. But the dealerships that are thinking creatively, adjusting their marketing, and meeting customers where they are—they are winning (or even maintaining and that's a win) despite the slowdown.
So, what is causing this sluggish market? And more importantly, what can we do right now to turn it around?
The IRS is taking longer to process tax refunds, which is killing early Q1 momentum.
For years, buyers would file taxes, see their refund amount, and make a move on a car, most often before the money even hit their account.
This year, many are stuck waiting, which means fewer down payments and fewer deals getting closed in February.
Record-High Credit Card Debt: Consumers Are Trapped
U.S. credit card debt just hit an all-time high of $1.13 trillion. Minimum payments and delinquencies are on the rise. Source: Here
The average interest rate on a credit card is now over 21.5%, the highest it has been in nearly 30 years.
For many consumers, their credit cards are maxed out. In the past, they might have charged a down payment, knowing a tax refund was coming to pay it off, but in today's economy, that is no longer an option for them.
Consequently, many buyers do not jump early, as buying a car before they even get their refund is currently not possible. They cannot charge it to their card like before.
Organic Website Traffic Is Down And Consumers Are Hesitant
In many of our dealer markets, organic traffic to dealership websites is down by as much as 70-90% year over year.
This tells us that consumers are not in the market the way they were before. They wait, watch, and hold off on big purchases until they feel financially secure.
Google Algorithm Changes, SEO Matters More Than Ever
Google has made significant updates to its search algorithms, and many dealers have not adjusted their SEO strategy at all.
If your website traffic is dropping, it is not just the economy. It could be that your dealership isn’t showing up when customers are searching.
The types of search terms consumers use have changed. Today’s buyers are not just looking for “cars near me” or “used SUVs.” They’re searching for:
“Low down payment car loans”
“Best financing options with bad credit”
“No money down car dealerships”
If your site is not optimized for what today’s buyer actually needs, we are invisible.
Interest Rates & Manufacturer Incentives Are Moving the Market
Toyota currently offers 1.9% financing for trucks.
The result? They are moving a lot more metal than domestic trucks that do not have aggressive financing. Toyota has adjusted to its customers' oblivious needs and bought down rates.
In a high-interest-rate environment, every dollar counts, and consumers are making decisions based on affordability, not just desire.
What incentives can BHPH and independent dealers offer to make an impact? Get creative!
What Can Dealers Do Right Now to Win?
Get Creative With Financing & Incentives
What if you could legally structure a negative down payment for the right customer?
Example: A qualified buyer with strong job time and good income gets $500 toward their first payment or upfront costs or even toward a bill they need help paying.
Would that get someone in the door who has no cash right now? Possibly. It seems like a better chance than sitting on nothing.
Compliance is key here, and we are not suggesting making a legal mistake. However, thinking outside the box is what separates struggling dealers from thriving ones.
Speak Directly to What Buyers Need in Your Ads
Consumers today need a reason to buy. Our ads should reflect that.
Example messaging that works in today’s market:
“We Know Tax Refunds Are Delayed—Drive Home Today With Our Zero Down Options!”
“Bad Credit? No Problem! We Have Financing Solutions to Get You Rolling.”
“Trade In & Cash Out – Use Your Equity to Lower Your Payment!”
Be specific, be direct, and address their concerns head-on.
Help Buyers Who Are Struggling With Payments
Worried about rising delinquencies and repossessions?
What if you offered a one-time debt reduction incentive to help customers stay in their vehicles?
Instead of losing the whole loan to the repo, consider working with customers under clear qualifications to keep them in the car while protecting your bottom line.
Would this work for everyone? No. But even a tiny dent in repos could be the difference between struggling and surviving.
Double Down on Retargeting & Awareness Ads
Not every customer is ready to buy today—but they will be when their tax refund hits.
Retarget every website visitor, Facebook engagers, and past leads.
The goal? Stay top of mind so that you’re the first place they call when they get their money.
The Market Has Shifted Big Time - Will You?
Some dealers are getting crushed by this slow start, but others are winning big. The difference? They are making moves and being proactive.
Right now is NOT the time to pull back. It’s the time to:
✅ Invest in infrastructure—update your website, improve SEO, and fix any leaks in your sales funnel.
✅ Upgrade your digital marketing—retarget shoppers, improve creativity, and focus on what actually drives action.
✅ Refine your offers—meet customers where they are and structure deals that work for today’s economy.
Remember: Creativity Wins, But Compliance Matters
All these ideas? They’re just ideas. None of this is intended to be legal advice as every state has different laws and regulations on financing, incentives, and advertising. Before launching anything, check with compliance professionals.
A great resource is Ignite Consulting and Steve Levine. They can help you structure creative, compliant programsthat actually work in any market. They are a trusted partner of Big Time Advertising & Marketing. We highly recommend their services. Because, at the end of the day, tough markets separate the winners from the losers.
Big Time Advertising is proud to be a part of the 4th Annual BHPH United Summit, happening April 22-24, 2025, at Caesars Palace in Las Vegas – and we want to see YOU there!
Whether you are an experienced BHPH dealer or considering adding BHPH to your business, this is theyear's must-attend event.
WHAT’S NEW IN 2025? 🔹 Compliance Unleashed joins BHPH United – two powerhouse conferences for the price of one.
🔹 Introducing “The Garage” – an industry-first interactive experiencewhere dealers will get hands-on with:
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✅ AI jingles & avatar workshops
✅ Live mystery shopping of YOUR dealership while YOU listen
✅ And much more!
THIS is where the best in BHPH come to learn, connect, and level up. Do not sit on the sidelines – register now at BHPHunited.com and ensure you are in this event.
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