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In this transcribed episode of the Used Car Dealer Podcast, Zach talks with Dan Ingle, President and COO of UsedCars.com, about how affordability pressure is accelerating the new-to-used shift—and what that means for dealer inventory, pricing, lead handling, and EV strategy.
Zach: Zach here, and today’s guest is Dan Ingle, the President and COO from UsedCars.com, a platform sitting right at the intersection of consumer demand and dealer supply in today’s shifting auto market. With millions of monthly shoppers and real-time insights into buyer behavior, Dan brings a data-backed perspective on how affordability pressures and inventory shifts are reshaping the used car landscape. So, Dan, thanks so much for joining me today.
Dan: Hey, thanks, Zach. Great to be here. Appreciate the opportunity to talk a little bit and discuss what’s happening in the used car market.
Zach: So, to kick things off, tell the audience a little bit about your career journey into the auto industry— a little bit about yourself.
Dan: Sure. Very good. Appreciate it. So, let’s see. First off, just very grateful and fortunate to have the opportunity to work in an industry like we work in—very dynamic, lots going on all the time. In terms of my start, I dipped my toes into the auto industry back in the late 1990s—1999, as a matter of fact—starting in auto finance. I actually worked for a startup in San Diego called PeopleFirst. They were pioneering direct-to-consumer lending, which was eventually purchased by Capital One—Capital One Auto Finance integrated them in.
After that, I joined Kelley Blue Book to be part of the leadership team that was assembled to reinvigorate the then 80-year-old brand, and really to try and technology-enable it and bring the business and operations forward into the current environment. Very cool experience. It was like being part of an 80-year-old startup. So that was a pretty interesting time to be there. I was there when Cox purchased KBB and kind of was able to see how that helped shape the business for where it is today.
While I was there, we brought things like the KBB Price Advisor to the market, if you’re familiar with that. And then we also did the KBB Instant Cash Offer while I was there. And then the last part of my time with Cox, I spent traveling the world for them. I was establishing KBB and Autotrader out in international markets like China, Brazil, Australia, and up in Canada.
After my time at Cox, that’s when I landed at AutoWeb, where I am today. AutoWeb—I was recruited to be part of the executive leadership team to turn the failing company around after many years of decline. The year before this group arrived, AutoWeb lost about $40 million the prior year. With a great team around us, we brought the company back to cash-positive with healthy margins. And that was part of AutoWeb being taken private back in 2022. And that brings us to current day.
Zach: Really cool dynamic journey—and love the 80-year-old startup kind of KBB context. So today, you’re roughly seeing one in three shoppers move from new to used. In your opinion, what’s driving that decision beyond just the monthly payment shock?
Dan: Yeah, it’s been really interesting to watch and see the dynamic happen over time. But I think the big answer is affordability is the driver. You look at new car costs averaging over $50,000. Interest rates continue to be high. Now you’ve got many automakers also increasing prices on their 2026 models as well—trying to pass along some of those tariff impacts.
And then when you compound that with the fact that—latest data I saw—I think it was like 23% of all new cars being financed at this point, the deal term is 84 months. That comes with an average payment now of $770, an all-time high. And then on top of that, you also have down payments falling at the same time to near historic lows. I think it’s just over $6,200, I believe. That’s the lowest it’s been since 2022, I believe.
So lots of it. It’s very, very oriented around just the cost of new cars and the affordability crisis that we’re seeing.
Zach: And what trends are you seeing in terms of price bands or vehicle types that consumers are landing on?
Dan: Yeah, I mean, the segments and the makes and the models actually tend to follow typical new car shopping behaviors. You’ve got SUVs—midsize and compacts—small sedans like a Civic, pickup trucks obviously big. And when we analyze what vehicles the consumer researched and then expressed interest in versus what they ended up buying, a large percentage of those stay on brand.
So they wind up in their vehicle of choice—maybe a lower level of trim—just in a more affordable package. You also see consumers stay on brand but purchase a model that is, for example, a step down from their initial intention. If you look at like a Chevy Traverse and somebody transitioned into an Equinox instead.
And for those who aren’t likely making a switch, we do continue to see shoppers looking for that unicorn—you know, $15,000 good quality, reasonable mileage, solid vehicle value out there.
Zach: How has shopper intent evolved over the past 12 to 18 months as affordability tightens? You have external pressures like rising gas prices and some global instability—how’s that impacting consumers?
Dan: Yeah, I mean, I think that’s one of the more interesting dynamics—at least that I’m seeing and we’re seeing across the industry—is that consumer demand has remained healthy. Despite all the craziness going on around us politically and economically, which has been, again, a bit of a surprise to me, the U.S. consumer is a fairly resilient animal. They want what they want. And the U.S. consumer—not a stranger to that.
And we haven’t been able to really tease it out on UsedCars.com yet, but I’ve read a fair amount about research showing vehicle purchases becoming more of a need-based over the last year and a half or so versus a want-based purchase. And I think the number I saw was like 75% of consumers reported need versus want.
And I think that speaks to the fact that people still need reliable transportation to get around, get to work, either way to haul their families around—and affordability and pricing has just become an even larger driver of that decision.
The other interesting part: when you look at consumer confidence numbers—I don’t know if you ever look at the University of Michigan study—they do consumer confidence numbers on a very frequent basis. Those have been declining very rapidly. They’re down like 9% year over year. And those numbers are now at pandemic-era lows. And that kind of feels like the canary in the coal mine to me. Despite we’re still seeing good demand, I think we could be seeing signs of trouble on the horizon.
Zach: So what does the migration from new to used mean for dealer sales performance in 2026?
Dan: Yeah, I mean, I think it’s gonna mean quite a bit to the dealers in terms of how they’re thinking about their business. A couple things that come to mind: number one, they need to be prepared to support consumers through that shift. So how can they become a trusted advisor to the consumer and coach them that used is a great option.
And obviously, having a solid stock mix of used cars will also help give the consumer options that fit their product and pricing needs.
When you look at the statistic that’s out there—dealership groups in terms of their new-to-used mix—usually they run somewhere around one-to-one. I think the average for 2025 was just under that, like 0.94 I think was the number. But what we’re seeing is more dealers, more groups pushing beyond that one-to-one used-to-new mix.
And I think just the latest Automotive News—they listed the top 100 dealership groups in used vehicle sales—and I believe almost 31 groups surpassed that one-to-one average last year, up from 27 the prior year.
And when you narrow the lens down on the publicly traded groups, four of the publicly traded groups are now more than that one-to-one ratio. I think you had Sonic leading the charge—almost one and a half to one—then you’ve got Lithia, Group 1, and AutoNation all out there, stronger than that one-to-one used-to-new mix.
Zach: And how should dealers rethink pricing, digital listings, or even F&I strategy to better align with this kind of new affordability-driven shopper?
Dan: Yeah, I mean, I think common sense from prior times tells us there really isn’t a big change required there. But they need to price the vehicles to sell. Consumers today have more tools at their disposal to help them understand what’s happening in the market and see what competitive vehicles are priced at.
The good news is you don’t need to be the lowest price. I think you just don’t be the outlier. And that will get you exposure to that consumer and give you a chance to sell that vehicle.
On the listings front, the message there is get exposure everywhere you can. Having high quality imagery—always important—continues to be important. Vehicle history reports are equally important as well for those shoppers that are transitioning from new to used. They’re used to that brand-new vehicle, not having to worry about vehicle history, repairs, issues.
If you can show them, “Hey, this vehicle has got a great history report,” that creates trust in the vehicle. And that trust is really critical when we think about how to approach these buyers.
And then the last thing I’d throw in is a little bit around lead handling. When a consumer expresses interest, speed to lead is more important than ever. For the dealership, you can get in there first, be first in line, build that relationship, be that advisor. Don’t initially go for the hard close. These consumers may take a little bit more time as they make that transition and wrap their head around going from a new vehicle to a used vehicle. These buyers are going to need to be nurtured a little bit along the way.
Zach: And kind of shifting gears to inventory trends and acquisition strategy—with off-lease and fleet vehicles returning to somewhat more normalized levels post-COVID—how is that impacting inventory flow?
Dan: Yeah, I think we’re seeing some relief, but used car day supply is still under 40 days—about 37 is the last number that I saw. So things are still tight.
You’ve got off-lease three-year-old vehicles that are the most likely suspects for the new-to-used transition people. So not a lot of relief there.Thinking from the consumer side too: many consumers are also upside down on their current vehicle, which creates a more challenging environment for them to get out of those units—and for those units to enter the used car market.
Zach: And are we heading toward a more balanced market, or are we going to continue to see demand outpace supply in some of those key segments?
Dan: Great question. But I think for me, given the pace of the post-COVID off-lease vehicles coming back and entering the market, that’s being countered by the growing new-car affordability challenges—for which I don’t see an end in sight. So I’m not sure I see that balance coming into the market anytime soon.
Likely a little bit of relief, but I wouldn’t say we’re going to reach any sort of balanced equilibrium anytime soon.
Zach: So what should dealers be prioritizing right now when it comes to sourcing inventory—whether it’s auctions, trade-ins, direct-to-consumer?
Dan: There’s lots of different channels dealers can use to acquire inventory. The key is to follow a multi-channel acquisition approach with a bit of a balanced diet across several sources.
Good units can be found across many channels as long as you’ve got the processes and the discipline to manage it.
Auctions can be okay; however, the more in-demand units are often scooped up before they make it into the lanes—then you have auction fees to contend with.
Trade-ins: always a good source; however, your trade-in process needs to be tight. You need to be really in control. You’re not really in control of the volume when it comes in.
Service lanes: another great place to look—solid channel to pursue. Again, you need consistent and clean process for it to yield results.
The last couple I’d put out there: Facebook Marketplace is a great place to source vehicles. And products in the market like the KBB Instant Cash Offer—ways to bring consumers into your store to dispose of their vehicle.
Zach: Are there any specific vehicle categories—maybe late model or CPO eligible—where you see the biggest opportunity this year?
Dan: As far as the new-to-used transition folks go, if you’re a franchise store, clean, late model, on-brand vehicles are going to give you the best chance of success to capture those deals. As far as vehicle segments go, stocking a good mix of those late model vehicles across segments is going to give your shoppers options and keep them on your lot.
Zach: Used EVs—they’re becoming more prominent. What are you seeing in terms of shopper interest and maybe conversion around used EVs?
Dan: EVs have been really interesting, especially over the last 12 months or so. We’re definitely seeing an uptick in consumer interest in EVs on UsedCars.com.
As recently as we were doing analytics with our head of data science, in absolute numbers we’re seeing steady increase in impressions of EVs through Q1. We also saw a big impression increase about mid-April. It’s normalized a bit; however, overall impression share definitely trending up for EVs on UsedCars.com.
As far as conversions go, it takes a little bit of time for that conversion to mature. We haven’t really seen too much yet in terms of a change in conversion rates; however, we’re keeping a pretty close eye on it.
Zach: In another EV question—are affordability and depreciation making used EVs more attractive, or are concerns like battery life still holding buyers back?
Dan: From affordability, it’s definitely helping. There’s a glut of off-lease used EVs out there. Prices have aligned around that excess supply. The lower costs—now closer to their ICE counterparts—have made them more attractive. Then when you add in high gas prices, those EVs can look pretty good.
On the other side: battery health and battery life is still a concern. However, the technology to quantify battery health is much better now and is helping people understand that aspect of a purchase, which hopefully eases fear. And there are pretty strong battery warranties out there as well that help make consumers more comfortable.
Zach: And how should dealers approach pricing, merchandising, and used EV inventory differently than ICE counterparts?
Dan: For pricing, it’s like any other vehicle—price it to market. Be aware of what’s for sale in your area and be in that range. Again, you don’t have to be the lowest price to win the deal.
With EVs, your product knowledge and the trust you build goes a long way. The buyers coming in to purchase used EV are usually a little better educated on the product. Your salespeople need to be trained.
From merchandising: plenty of high-quality images, market-based pricing, showcasing your consumer ratings—trust is the name of the game. Highlight vehicle range to help comparisons. And if you’ve got it, tested battery health and extended battery warranties become very important.
Zach: What do you think are the biggest opportunities in terms of merchandising used inventory in the second half of 2026?
Dan: Used market in general—I don’t think the back half of the year will be tremendously different from the first half. I think we’re still waiting to see the impact from the war in Iran—what’s that going to do to the market?
As I said earlier, I think we’re still going to have tight supply. We do have some more off-lease vehicles coming, but I think the number of consumers running into the affordability crisis is going to create that pinch so inventories stay tight. I don’t see any major shifts happening second half versus first half.
Zach: Last segment—rapid fire. Three questions. First one: one underrated vehicle segment dealers should be stocking right now.
Dan: This is a good one. I think there’s a good velocity play out there in the three-to-five-year-old sedan range—think Sonata, Fusion, Malibu, Mazda6. They don’t receive much love in the market, but still widely purchased. It’s a vehicle you can buy cheap, price aggressively, and turn fast.
Zach: Biggest mistake dealers are making in today’s market from your view?
Dan: I’m going to pull from my old pal Wayne Gretzky: not skating to where the puck is going. This used car shift is not a short-term ripple in the matrix. It’s here to stay.
The other thing: not meeting consumers where they are in terms of how they want to shop and buy. Timing and messaging are everything with these shoppers.
Zach: Lastly: a data point from UsedCars.com that has surprised you recently.
Dan: I mentioned earlier talking to our head of data science—the one data point that really shocked me (and I need to dig into more) is that in mid-April, impression volume for EVs doubled.
Zach: Interesting.
Dan: Mid-April—that’s probably our indicator too about potential growth for EVs in the market. That could be a canary in the coal mine telling us something’s coming toward us. Wow. And just being in San Francisco resonates a little with me. I’ve seen gas stations at eight dollars a gallon for gas. I recently leased a Mercedes EV, and it’s been nice not having to go to the pump during these price points.
Dan: Yeah, I went to the dark side a little while ago too and bought a full EV. And now with gas prices where they are, I’m kind of glad I did that.
Zach: Nice. Well Dan, I really enjoyed our conversation. You’re so knowledgeable. You have so many data points just at the top of your head. I think the audience has definitely enjoyed this episode too. If a dealer is listening and they want to contact you, or get a hold of UsedCars.com, or find out more about your offering—how should they approach that?
Dan: Yeah, just go to usedcars.com. There’s a dealer section on there and you can contact us there.
Zach: Awesome. Well, thanks again, Dan, for joining me on the podcast today.
Dan: Excellent. Thanks, Zach. Appreciate the opportunity.
Learn more about Usedcars.com: https://dealers.usedcars.com/
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