According to Automotive News, some dealerships may begin purchasing less-used cars that have been issued auction salvage rights and placing them on lots due to the high demand and high resale value of two- and three-year-old vehicles. Many buyers have increasingly been turning to used cars over the past few years, first due to supply chain issues, then inflation and now, tariffs.
The salvage title vehicles that some mainstream dealers will stock will not be those that were involved in serious accidents or that required significant structural repairs. Insurance companies can total vehicles for a variety of reasons that have nothing to do with safety, except a repair that is deemed to exceed the vehicle’s value – assuming it was repaired with the correct new part and the repair was performed by a factory-trained technician.
These include imperfect engines and transmissions, battery packs and electric drive motors on electric vehicles, or even weather-related damage at the assembly plant, during delivery, or at the dealership. Some of these vehicles may only last a few thousand or a few hundred miles.
Still, it’s a slippery slope if mainline dealerships start practicing it. However, this may soon grow out of necessity, as analysts expect a surge in vehicles reaching the end of three-year leases starting in the second quarter of the year and continuing to grow throughout, with many being EVs, which could be a tough sell given the indefinite moratorium on incentives. If drivers still like their vehicle they can choose to keep their vehicle at the end of the lease and have a significantly higher monthly payment than a comparable 2026 model.
In any case, the unpredictable economy and tariff situation may still make it hard for people to buy or sell a car this year, and “creative” solutions are in style.
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