Retail Used Prices Slide to 2021 Levels – Service Departments Pick Up the Slack
In Q2 2025, the average retail price for a 3-year-old used vehicle hovered around $31,216, nearly matching the record highs set during the peak of the chip shortage in 2022. Meanwhile, average new car costs climbed to $47,479, a 35% increase from Q2 2019.
While pricing held strong, the pace of turnover began to slow. According to Edmunds, used vehicles were sitting on lots for an average of 38 days, the slowest pace since early 2021, as buyers became more cautious and more selective.
Update: Prices Are Cooling, and So Is Inventory Pressure
More recent data from CarEdge suggests this trend is beginning to reverse:
- Average used car listing prices dropped to around $25,500 in August
- Time-to-sell is improving, as dealerships adjust pricing to meet demand
The softening is being driven by higher interest rates, new vehicle incentives, and seasonal buyer hesitation. As wholesale values decline, retailers are recalibrating quickly — particularly in more saturated segments.
What This Means for Dealership Hiring
Even as inventory moves faster and prices begin to dip, service departments remain under pressure.
At Holt Automotive Staffing, we’re supporting dealership teams that are shifting from reactive to proactive hiring. A stabilising market doesn’t mean less demand — it means greater pressure to perform.
With gross margins tighter and more high-mileage vehicles still moving through inventory, your service team becomes the backbone of revenue protection and customer retention.
Key roles in focus include:
- Experienced service technicians
- Parts and warranty professionals
- Service advisors with CSI focus
Advice for Dealerships in Q4 and Beyond
If your lot is turning faster but profit per unit is shrinking, now’s the moment to double down on service talent.
Here’s where we see forward-thinking dealerships acting:
- Hiring ahead of peak demand, not in reaction to it
- Building team stability to reduce churn in high-impact roles
- Improving time-to-service to boost CSI and retain customers
