The Future is Coming, are you prepared?

The U.S. automotive industry in 2025 is experiencing modest growth and increased stability, with new vehicle sales approaching their highest levels since 2019 due to improved supply chains and more accessible credit. However, persistent challenges—including tariff uncertainty, fluctuating trade policy, and sustained high interest rates—are placing pressure on both pricing and consumer demand. As the industry navigates these pressures, dealerships are closely monitoring shifts in sales volume and the overall impact of economic and political factors on the market’s trajectory.

Impact of 84- and 96-Month Loans on Sales

Extended loan terms, including 84 and 96 months, have become increasingly prevalent as new and used vehicle prices rise. Nearly 70% of loans for both segments now exceed 61 months, making vehicles more affordable through lower monthly payments. This facilitates sales by expanding the potential buyer pool, as customers can fit pricier vehicles into their budgets. However, these long-term loans carry significant risks: higher total interest paid, greater probability of negative equity (owing more than the car is worth), and customer retention issues as buyers keep vehicles longer, delaying repeat purchases.

Service Lane Retention and Fixed Expense Absorption

Maintaining high absorption rates—the ability for service and parts to cover dealership operating expenses—is crucial for long-term resilience. During periods of volatile vehicle sales, reliance on a thriving service department ensures financial stability and superior profitability. Dealerships with robust service retention can weather market disruptions and pricing changes more easily, while those that neglect this risk vulnerability and lower margins.

The Power of Segmented Email Campaigns

Regular, segmented email marketing offers car dealerships superior return on investment, with average ROI estimates in automotive as high as $42 for every $1 spent—outperforming all other digital channels. Sending relevant communications to customers not only strengthens relationships and drives service lane traffic, but segmentation also unlocks additional value by targeting lost opportunities.

Strategically segmenting the dealership’s database makes it possible to recapture significant revenue from “declined services” customers—those who have outstanding service recommendations—and “lost customers” who are overdue or inactive. These two segments represent substantial untapped profit potential, and effective email campaigns directed at them can increase both fixed operations revenue and overall customer retention.

Verification of Claims

• The popularity of very long loan terms is a financial reality, expanding sales opportunities but with cautionary downsides.

• High dealership absorption rates are critical for survival and profitability, especially during market slowdowns and disruptions.

• Consistent, targeted email marketing is validated as a top driver of ROI and customer retention in the service department, meeting and exceeding the effectiveness of alternative marketing strategies.

To thrive in today’s fast-changing automotive market, dealerships need more than just flexible sales tactics—they must dominate digital engagement and capture every lost service lane opportunity. The clear winner in ROI and consistent customer retention is segmented, database-driven email marketing, and the most effective platform for this is NaturalLead for Your Service Lane. By adopting NaturalLead’s precision service marketing and advanced customer segmentation, dealerships can re-engage lost customers, win back those with declined services, and generate new revenue from every segment of their database.

NaturalLead’s proven technology turns your existing customer base into a revenue engine—proactively targeting the most profitable “lost souls” and “declined services” segments, with AI-powered campaigns crafted for maximum results. With an average email marketing ROI of $42 for every $1 spent and a complete focus on data security and compliance, no other marketing investment comes close to delivering the same reliable, measurable returns for your service department or fixed ops profitability.