Auto Industry Momentum: Rising Prices, Smarter Ads, and a Brighter Outlook for Dealerships 

From record-breaking new vehicle prices to Google’s latest Demand Gen upgrades and a renewed wave of dealer optimism, the automotive landscape is charged with opportunity. September 2025 marked the first time the average new car topped $50,000 – a milestone that signals both market strength and evolving consumer demand. At the same time, Google’s AI-powered ad tools are reshaping how dealerships reach buyers, while confidence across the retail sector continues to climb despite tariffs and interest rate pressure. Together, these shifts paint a powerful picture: dealerships that adapt fast and market smarter are poised to win big in the months ahead. 

Average New Vehicle Prices Rise 

According to Kelley Blue Book, the average new vehicle transaction price reached $50,080 in September 2025, crossing the $50K threshold for the first time ever. That’s a 3.6 percent jump year-over-year and a massive leap from 2019’s average of $37,590. 

Luxury buyers and the growing popularity of high-end EVs are fueling this climb. Cox Automotive reports that EV market share hit 10.5 percent in September as shoppers raced to use the soon-to-expire $7,500 federal tax credit. Meanwhile, interest rates remain high – 9.43 percent on new vehicles and 14.12 percent on used – keeping affordability a hot topic for both consumers and dealers. 

However, the market isn’t slowing. Higher-value models, strong consumer demand, and new-year inventory are keeping dealership lots busy and margins solid heading into 2026. 

Google Announces Demand Gen Updates 

Google’s latest Demand Gen Drops update is a major win for automotive marketers. The platform has rolled out new customer acquisition modes, giving advertisers the power to target new, high-value, or returning customers more precisely. 

Here’s the headline stat: advertisers using Google’s New Customer Only Mode have seen an 11.5 percent boost in new-customer ratios while cutting acquisition costs by 3 percent. 

But that’s not all. Google is rolling out new tools for YouTube campaigns — making professional-quality content creation easier and more accessible than ever. Add in deep linking for iOS apps and Target CPC bidding updates, and dealerships can now connect campaigns, audiences, and conversions with next-level precision.

For dealers looking to stand out in a competitive digital space, these tools make every ad dollar work harder. 

Dealerships’ Q3 Industry Outlook Improves 

Despite tariffs and interest rate uncertainty, dealerships are feeling upbeat. The Automotive News Auto Industry Confidence Index shows the franchised dealer sector climbing to 59.3 – up 3.8 points from Q2. 

Even better, optimism about the next six months rose sharply: 41 percent of dealers now expect conditions to improve, compared to just 27 percent last quarter. F&I profitability, fixed ops growth, and inventory turnover all saw encouraging increases, pointing to a stronger close for 2025. 

Strong Automotive Can Help You Stay Ahead 

From rising prices to smarter ad tools and an optimistic market, there’s never been a better time to refine your strategy. Strong Automotive helps dealerships turn data into growth through targeted campaigns, intelligent ad management, and hands-on digital strategy. 

If you’re ready to convert insights into action, and make every click count, Strong Automotive has the expertise to drive your next record-setting quarter.