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ZEROSUM "STATE OF THE DEALER" REPORT

In an exciting development for the automotive industry, ZeroSum's November 2025 report indicates that new vehicle inventory has surged to 3.04 million units. This marks a notable increase of 150,000 units compared to previous months, representing an upward movement in inventory not seen since March 2025. The growth is largely attributed to model year changeovers, a pivotal period that typically sees an influx of new stock on dealer lots.

According to Shawn Brunner, Senior Director of Sales at ZeroSum, the increase in inventory comes as the industry prepares for the winter sales season. “With model year changeovers in full swing and the industry gearing up for winter sales events, inventory growth is not unexpected,” he noted. However, this surge in inventory doesn't come without its challenges. The vehicle turn rate— the percentage of a dealer's inventory sold in a month— has dipped down to 36% in October, down from 41% in August. This decline poses a dilemma for dealers as the equilibrium between supply and demand shifts unfavorably.

Despite new vehicle sales rising by 70,000 units month-over-month in October, the overall market has shown signs of stability. Market dynamics indicate that while supply increases, demand is not keeping pace. Predictions for November suggest vehicle movement could slow slightly to 1.11 million units, continuing a trend of cautious buying from consumers. With inventory levels rising, the urgency for dealers to innovatively market their stock gains even more significance as the year draws to a close.

Simultaneously, the used vehicle market is reflecting a different narrative. Used vehicle inventories saw a decline for the second month in a row, now standing at 1.89 million units, down from 1.98 million just two months earlier. Conversely, used vehicle sales spiked, reaching 1.33 million units in October, a substantial increase from 1.26 million units in September. This drop in inventory, paired with rising demand, has pushed used vehicle prices to their highest point this year at $27,000, marking an increase of $500 from September and $1,700 since February.

Brunner highlights the contrast between new and used vehicles, explaining that while the inventory for used cars has remained relatively stable, sales activity has fluctuated positively. He urges dealers not to relax despite current high prices and increasing sales, emphasizing the importance of sustained effort and focus on the evolving market conditions, particularly with winter sales campaigns on the horizon.

ZeroSum is recognized for its advanced inventory-based market intelligence and digital marketing solutions tailored for automotive dealers. The