#None #ZeroSum #new vehicles #Price Trends

Overview of Sales Trends and Market Dynamics

According to the latest "State of the Dealer" report from ZeroSum, the automotive market is currently navigating a complex landscape characterized by fluctuating vehicle prices and shifting sales trends. In July, the Average Marketed Price (AMP) for new vehicles fell to $49,400. However, the first few days of August have seen this figure increase to $49,842, reflecting a more than $400 rise in just a short period. This is significant considering that 6 out of every 10 new vehicle models have experienced price increases recently, a trend that could impact buyers looking for affordability amid rising costs.

Projected Sales Figures

The report forecasts that vehicle sales will decline in August, anticipating sales to drop to approximately 1.1 million units. While the overall vehicle movement hit a robust 1.16 million units in July, much of this was driven by consumer urgency to make purchases before expected tariff-related price hikes. As consumers seized the opportunity to buy, it inadvertently magnified the changes in the market.

Josh Stoll, Vice President of Dealer Success at ZeroSum, highlighted the implications: "Milder-than-expected tariff-related price increases helped sustain strong sales in July. Nonetheless, as demand wanes in August, we are likely to see a stagnation in sales figures, reflecting broader uncertainties in global trade and their potential repercussions on pricing and production."

Inventory Shifts and Market Reactions

Another dimension explored in the report pertains to inventory levels. As of July, new vehicle inventories decreased to 2.84 million, marking a decline from the previous month's 2.87 million. This reduction is noteworthy since it's the fourth consecutive month that inventory has remained under the 3 million mark. Conversely, the used vehicle inventory has ticked upwards for five consecutive months, now standing at 1.95 million units, the highest since December 2024. This shift illustrates how the dynamics of comfortability are changing for car buyers.

Stoll elaborates on current trends: "With the longer-than-expected strength in the new vehicle sector, used vehicles are beginning to experience some pressure. We are witnessing a rising supply against a backdrop of flat demand, resulting in longer ‘Days-to-Move’ for used vehicles. This change can impact car traders and dealers as they strategize for future moves in the industry."

The Role of ZeroSum in the Automotive Market

ZeroSum stands at the forefront of automotive marketing and market intelligence, providing innovative inventory analysis and digital advertising solutions specifically designed for auto dealers. Detailing their commitment, ZeroSum highlights that the 'State of the Dealer' report serves as a vital resource for understanding the nuances of the new and used vehicle markets. Its insights are crucial for dealerships striving to adapt to rapid fluctuations.

"Our ongoing goal is to condense and clarify the complexities of the automotive market so dealers can make informed decisions," said a spokesperson from ZeroSum. The research conducted not only emphasizes current pricing and inventory trends but also underlines how to navigate future uncertainties in the automotive landscape.

Conclusion

In summary, the ZeroSum report sheds light on an important inflection point in the automotive market. Despite a dip in overall car sales for August, the continued rise in prices for new vehicles suggests that both consumers and dealers will need to consider carefully their strategies moving forward. The interplay between tariff impacts, inventory levels, and changing consumer demand dynamics will be crucial as stakeholders seek to maximize their positions in the evolving automotive landscape. For further details, the entire report is available for download, offering deep dives into vehicle movement, turn rates, days-to-move, and pricing trends for all vehicle types.