Inventory Trends Pointing to a New Automotive Normal: ZeroSum State of the Dealer Report
Inventory Picture Plateauing, Movement Dynamics Pointing to a New and Healthy Normal
In the ever-evolving world of automotive retail, staying ahead of inventory trends is crucial for dealers looking to maximize their sales potential. ZeroSum, a leading automotive retail agency, has recently released its May State of the Dealer report, providing valuable insights into the current state of the new, used, and certified pre-owned vehicle market.
According to the report, new vehicle inventory reached 2.8 million units in April, signaling a plateau in the supply and demand dynamics that have been in flux since the onset of the pandemic. The data suggests that the market is moving towards a more stable and balanced equilibrium, with inventory growth slowing to a 1% month-over-month increase in April.
One of the key indicators of this new normal is the movement of vehicles off the lot. Despite the stabilizing supply, vehicle movement has remained steady, with higher incentives and tax refunds driving consumer interest. This has led to a leveling of turn rate and days-to-move metrics, providing dealers with a solid foundation for planning and forecasting.
Jeff Englishmen, Vice President of Dealer Success at ZeroSum, commented on the findings, stating, “It certainly looks like we are arriving at a new and healthy normal, with supply and demand in a viable equilibrium situation going forward. This provides dealers with a set of dynamics to plan against and deal with.”
The report also highlights the stability of used vehicle inventories and movement, with pricing remaining relatively consistent. While there was a slight decline in movement from March to April, the overall trajectory of the used vehicle market is positive and on track for continued stability.
ZeroSum’s State of the Dealer report serves as a valuable resource for automotive dealers, offering detailed insights into supply and demand trends, inventory forecasts, and pricing trends. By providing dealers with the information they need to anticipate market shifts, ZeroSum is helping to streamline the sales process and improve overall efficiency.
As the automotive industry continues to evolve, staying informed and adaptable is key to success. With the insights provided by ZeroSum’s State of the Dealer report, dealers can confidently navigate the changing landscape and capitalize on emerging opportunities. Visit ZeroSum’s website to download the full May report and stay ahead of the curve in the automotive retail market.