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New Vehicle Days-to-Move Hits Five Year High

Recent findings from the latest report by ZeroSum reveal a concerning trend in the automotive sector: the average time required to sell a new vehicle surged to an all-time high of 80 days in January 2025. This represents an increase of five days compared to the previous month and stands as the highest level recorded in five years. These statistics highlight a dramatic shift in the market dynamics affecting car dealers and consumers alike.

Current Market Dynamics

Traditionally, the time it takes to move new inventory has a direct correlation with vehicle sales velocity. As automotive retailers navigate these turbulent waters, they may find that focusing on used and certified pre-owned vehicle sales could become increasingly critical for success. According to ZeroSum’s report, the projected new vehicle sales are anticipated to decrease from 1.07 million units in January to approximately 1.03 million units in February.

The increased days-to-move trend is not merely a statistical anomaly; it underscores deeper market pressures that auto dealers must understand and address. As Josh Stoll, Senior Director of Dealer Success at ZeroSum, indicates, this scenario could push dealers to adapt their marketing and sales strategies significantly.

Price and Demand Pressure

Even as the automotive landscape struggles with extended sales durations, vehicle prices remain elevated. The average marketed price for new vehicles dropped slightly to $49,500 in January, yet this figure still hovers near the $50,000 mark, indicating ongoing pressure on consumer purchasing power. Such pricing dynamics are impacting the buying decisions of consumers, forcing them to reconsider their investment in new vehicles, especially in light of the current economic environment where prices are unlikely to dip significantly.

Furthermore, North American tariffs may contribute to mounting costs, complicating the situation even further. Dealers face the dual challenge of high prices and prolonged sales cycles, creating a more adverse selling environment than anticipated.

Shifts in the Used Vehicle Market

In contrast to the sluggish new vehicle market, the used vehicle sector shows signs of resilience. Inventory levels remained steady at approximately 1.96 million units from December 2024 to January 2025. Remarkably, used vehicle sales increased by 100,000 units during this period, leading to an elevated Turn Rate rising from 57% in December to 62% in January. As used vehicle prices see a downward trend, with the average price falling to $25,600 from $27,400 just a month prior, this further bolsters the movement of used vehicles while simultaneously applying pressure on new vehicle sales.

Certified used vehicle inventory did see a slight decline, now standing at 210,000 units, yet this remains above the critical threshold of 200,000 for the fourth consecutive month. The average price for certified used vehicles sits at $37,000, proving to be more accessible for buyers compared to new alternatives.

The Road Ahead for Dealers

As car dealerships encounter these mounting challenges characterized by extended sales durations and pricing pressures, a reassessment of strategies is necessary. With used vehicle prices decreasing, dealers should consider amplifying their focus on the used car segment to maintain sales momentum. While acknowledging the mixed bag of outcomes within this market, it is clear that adapting quickly to changes in consumer behavior and market trends is essential for dealerships looking to thrive in 2025 and beyond.

About ZeroSum

ZeroSum stands at the forefront of the automotive industry, revolutionizing marketing and sales through advanced software solutions. By leveraging artificial intelligence and real-time data analytics, the company aims to bridge the gap between consumer demand and dealer supply efficiently. For more information about ZeroSum and its offerings, visit their website at www.zerosum.ai.