ZeroSum has to admit it doesn’t have all the answers.

But the marketing and data software firm understands why cars have been flying out of dealerships for the past month.

In its latest “State of the Dealer” report, ZeroSum said March used-vehicle sales soared to the highest level in its seven years of tracking that data, while new-vehicle movement jumped 38% month-over-month, thanks to a combination of more selling days, tax refunds and — most notably — pull-ahead sales related to tariff concerns.

“On a monthly basis, the ‘State of the Dealer’ report strives to answer the question all automotive dealers are wondering: ‘Is it going to be harder or easier to sell a car in the next 30 days?’ ” the report began. “The answer this month is… we don’t know.

“But what we do know is consumers are rushing to buy new, used and certified vehicles in anticipation of severe price hikes due to tariffs that were implemented April 3.”

The report showed used-car sales hit 1.53 million units in March, up 32% from February and 11% year-over-year. The used turn rate shot up from 67% in February to 83% in March, a level not seen since May 2021.

As a result, ZeroSum found used-vehicle inventory dropped to 1.795 million units, almost 200,000 less than the total at the end of 2024. And with the rise in demand and the drop in supply, the average used-car marketed price rose $988 from Feb. 28 to March 31. The March average of $26,100 ended a string of four consecutive months of falling prices.

“The historically high used-vehicle movement numbers point to this market sector acting as a safe-haven plan B for a consumer base that has been struggling with high new vehicle prices,” ZeroSum vice president of dealer success Josh Stoll said. “And with those new vehicle prices already heading upward and potentially about to go much higher, used vehicles should be an important part of every dealer’s priorities.

“Promoting and highlighting that inventory and pricing it competitively in the local market will be more important than ever given the broader marketplace dynamics that are currently in place and potentially in flux.”

The report also found certified vehicles sales increased 27% month-over-month and 15% over March 2024, along with a 12-percentage-point rise in turn rate to 84%, and a two-day decrease in average days to move, to 43. CPO prices and supply remained stable, with only a slight increase in price and decrease in inventory.

New vehicles showed a similar track to the overall used market for March, with sales, turn rate and average price all trending up.

“The tariff-related sentiment among consumers appears to have gone from a looming concern to an imminent reality,” Stoll said, “which is accelerating purchases among in-market shoppers.

“While the scope and duration of those vehicle and parts tariffs are an unknown at this point, they certainly have roiled the waters in the industry. Dealers who closely monitor the supply, demand and pricing cross-currents — and can quickly and effectively act on those market dynamics — will be better positioned to thrive in this market.”

The full report is available for download here.