ZeroSum "State of the Dealer" Report Shows New Vehicle
Inventory Settling in Near 3 Million Units
GRAND
RAPIDS, Mich., Sept. 4,
2024 /PRNewswire/ -- Average market adjustment
pricing, which measures discounts and incentives that are visible
to consumers on dealer websites, more than tripled for new vehicles
in the past year as inventories have grown by more than 50 percent.
The findings are part of ZeroSum's monthly State of the Dealer
report for August.
In August 2023, the average market
adjustment (dealer marketed price vs. MSRP) was -$532.00 compared to -$1,836.00 in August
2024 as available new vehicle inventory grew from 1.96
million units in August 2023 to 2.95
million in August 2024. While vehicle
movement reached a 12-month high of 1.2 million units in
August 2024, growth did not keep pace
with inventory. Vehicle movement jumped 16 percent from 1.03
million units in August 2023.
"The disparity in growth between inventory and vehicle movement
in the past year is putting more pressure on dealers to rely on
incentives to move new vehicles off of lots," said Jeff Englishmen.
"Market Adjustment provides insight into how much pricing pressure
there is in the marketplace. Dealers are having to be increasingly
aggressive to support those sales compared to a year ago."
ZeroSum predicts that September vehicle movement will fall
slightly to 1.18 million units. With inventory likely to stay near
the 3-million-unit plateau, reliance on incentives is likely to
stay prominent in September.
Used and certified vehicle trends point to an improving health
picture, with vehicle movement and turn rates heading higher in the
current period:
- Used vehicle turn rates were at 69 percent in August 2023 and grew slightly to 72 percent in
August 2024.
- Used vehicle inventory grew modestly from 1.77 million in
August 2023 to 1.83 million in
August 2024.
- Certified used vehicle turn rates were 83 percent in
August 2024 compared to 88 percent in
August 2024.
- Certified used vehicle inventory was stable year over year
(195,000 units in August 2023
compared to 196,000 units in August
2024), although this was the first month Certified inventory
dipped below 200,000 since October
2023.
Lower pricing year-over-year on used car vehicles appears to be
helping that sector, moving from $28,993 to $26,429
from August 2023 to August 2024. This is likely contributing to the
Market Adjustment pressure seen on the new car side.
ZeroSum is an automotive retail agency that provides
cutting-edge inventory-based digital marketing solutions tailored
to dealers. The State of the Dealer report is the first and premier
data source for the new, used, and certified pre-owned automotive
market.
Click here to download ZeroSum's entire September State of the Dealer Report, including
vehicle movement, turn rate, days-to-move, inventory, and pricing
trends for new, used, and certified vehicles.
About ZeroSum
ZeroSum is an industry leader in software, marketing, and
data. Powered by its SaaS platform, MarketAI, ZeroSum is
simplifying and modernizing automotive marketing by leveraging
artificial intelligence, data, and scaling ability to acquire new
customers. ZeroSum is the first and only company that matches
consumer demand with automotive data in real-time for dealer
marketing efficiency. For more information,
visit www.zerosum.ai
For media inquiries, please contact:
Mike DeVilling
mdevilling@westshorepr.com
Jennifer Haun
jhaun@cloudtheory.ai
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SOURCE ZeroSum