New Vehicle Inventory Reaches Near Pre-Pandemic Levels with 3.23 Million Units in November
New Vehicle Inventory Sees Significant Growth in November
In a recent report published by ZeroSum, an automotive retail agency, new vehicle inventory on dealer lots surged to 3.23 million units in November. This marks the third consecutive month of substantial growth, with an addition of 90,000 units each month. The current inventory levels are approaching the pre-pandemic range of 3.4 to 3.5 million units, indicating a market that is slowly stabilizing after a tumultuous period.
Jeff Englishmen, the Vice President of Dealer Success at ZeroSum, noted that despite this positive trend in inventory, the market is facing challenges. The turn rates for vehicles have remained stagnant between 35-38% over the past six months, and the average days to move a vehicle have now exceeded 70 days for the second month in a row. Englishmen suggests that auto dealers will have to intensify their efforts to compete effectively for sales in what appears to be a flattened market landscape.
Supply and Demand Insights
ZeroSum anticipates a slight movement in the market, projecting vehicle sales to increase from 1.17 million units in November to 1.18 million in December. This slight uptick, however, does not fully compensate for the increased inventory levels, raising concerns about supply management and competitive positioning among dealerships.
Moreover, the inventory of used vehicles also remained steady at 1.91 million units, maintaining consistency month-to-month and year-over-year. The used vehicle market has demonstrated stability, with the monthly movement for used vehicles holding firm at 1.22 million units for both October and November.
Interestingly, there has been a notable decline in the average marketed prices for used vehicles, which fell by $1,763 year-over-year, dropping from $27,891 in November 2023 to $26,128 in November 2024. This drop in pricing power may be linked to the current dynamics in the new vehicle supply and demand, as available inventory approaches pre-pandemic levels.
The Path Forward
In light of these shifts, Englishmen emphasizes the need for dealers to adapt their strategies to navigate the evolving landscape effectively. “With inventory levels nearing pre-pandemic counts and vehicle movement not keeping pace, the pressure in the marketplace is increasing,” he states. The persistent low turn rates and lengthy days-to-move should serve as a wake-up call for dealerships to enhance their marketing and sales tactics.
ZeroSum, recognized for its innovative digital marketing solutions tailored for automotive dealers, continues to be a critical resource in analyzing market trends. Their State of the Dealer report serves as a vital benchmark for stakeholders in the automotive sector, providing insights into vehicle movement, turn rates, days-to-move, and pricing trends across new, used, and certified pre-owned vehicles.
Dealers looking to remain competitive must leverage data-driven strategies and consider real-time consumer demand as they refine their marketing approaches. In the current environment, knowledge and adaptability will be essential for sustaining sales momentum and maximizing market share.
To dive deeper into the market data, readers are encouraged to download ZeroSum's complete December State of the Dealer Report.
For any media inquiries, contact Mike DeVilling at ZeroSum.
www.zerosum.ai
Topics Auto & Transportation）
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