The Competitive Advantage of Strategic Inventory Visibility

The recent tariff implementations have dramatically accelerated automotive market shifts that were already underway. According to ZeroSum's April 2025 State of the Dealer report, the impact is clear and immediate: new vehicle movement jumped by an astounding 38% month-over-month, reaching the highest level since May 2021. Used vehicle sales followed with a 32% increase, marking the highest monthly level recorded since ZeroSum began tracking this metric in 2018. 

"The tariff-related sentiment among consumers appears to have gone from a looming concern to an imminent reality, which is accelerating purchases among in-market shoppers," notes Josh Stoll, Vice President of Dealer Success at ZeroSum. 

Adding to this complexity, the tariff landscape itself is constantly evolving. President Trump recently floated potential exceptions for auto parts facing the 25% U.S. tariffs, creating another layer of uncertainty for dealers and consumers alike. With both the scope and duration of vehicle and parts tariffs remaining in flux, dealers need data that allows them to act proactively and immediately. 

Why Visibility Matters More Now Than Ever Before 

Some dealers make the mistake of assuming their inventory will sell at the same rate as other dealerships; they can be quick to expect a certain outcome based on a blanket thought or opinion or assume that all the inventory on their lot will feel a lift. 

This misalignment of expectations can be devastating in the current environment. While the State of the Dealer report shows turn rates hitting their highest levels since October 2023 for new vehicles and since May 2021 for used vehicles, this growth hasn't been uniform across markets. Detroit and Chicago saw the largest Turn Rate increases for new vehicles, while Denver and Los Angeles lagged behind the national average. 

The hidden cost of poor inventory visibility manifests in: 

• Misdirected marketing dollars targeting the wrong inventory segments 
• Missed opportunities to capitalize on high-demand, quick-turning vehicles
• Failure to adjust pricing strategies to market realities 
• Increasingly longer days-to-move for poorly positioned inventory 

When dealer decisions are made without real-time market data, the cumulative effect can dramatically impact profitability. As inventory turn rates surge nationally, dealers without clear visibility risk watching their competitors capture the wave of anxious consumers while their vehicles sit on the lot. 

Converting Market Volatility into Sales Opportunities 

Forward-thinking dealers recognize that market volatility creates opportunity—if you have the right data. While the average new vehicle turn rate increased by 8 points month-over-month according to the State of the Dealer report, some regions saw increases of 12 or 13 points. This disparity indicates that some dealers were able to capitalize on shifting consumer demand quicker than others, and real-time market intelligence allows them to do that.  

Strategic inventory visibility, powered by ZeroSum’s MarketAI platform, gives dealers the ability to: 

1. Identify turn rate discrepancies. Understanding why specific models in your inventory are turning at 20% when the market average is 70% allows for targeted intervention. 
2. Optimize pricing strategies. MarketAI data shows that average marketed prices for new vehicles rose for the first time after five months of declines, with prices increasing every day. Dealers with real-time pricing intelligence can optimally position their inventory. 
3. Focus acquisition efforts. As tariffs hit and it impacts manufacturing, people are going to start looking for used inventory. Yet some dealers aren't going to be able to afford to acquire inventory. It's going to be even more important to make sure that they're looking at used car data that shows them exactly what they need. 
4. Direct marketing resources efficiently. When dealers have inventory that's not selling well in the marketplace, ZeroSum helps them examine that inventory and evaluate their pricing position and turn rate to determine the appropriate marketing approach. 

ZeroSum's Methodology: Visibility When It Matters Most 

ZeroSum provides dealers with comprehensive inventory visibility that goes beyond what competitors offer. While other solutions may share price position compared to the market, MarketAI delivers deeper insights in real-time, putting your inventory in perspective against both in-brand and out-of-brand competitors. 

The MarketAI approach includes: 

• VIN-specific performance analysis that identifies exactly which vehicles need marketing support
• Real-time data updates that allow for immediate strategic adjustments
• Comprehensive competitive analysis showing pricing, turn rates, and days-to-move
• Granular used vehicle insights down to the mileage level to identify optimal acquisition targets 

We look at your entire on-the-ground inventory starting with the VIN and trim level, getting a clear baseline for how your dealership should be selling all vehicles on your lot compared to the market. 

This approach means we can identify a dealer's specific inventory pain points and develop targeted strategies to address them. For example, if a Subaru dealer's Foresters are turning at 25% while the market average is higher, ZeroSum can pinpoint why competitors are outperforming and create a plan to close the gap. 

Preparing for What's Next 

Whether the market continues to surge or eventually stabilizes, strategic inventory visibility remains essential. According to the State of the Dealer report, certified vehicles are increasingly positioned as affordable alternatives to new vehicles subject to tariff-related price increases. Dealers who highlight this inventory will capture consumers navigating today's complex buying environment. 

As market volatility potentially intensifies with expanding tariffs, dealers with robust inventory visibility systems gain critical advantages: 

1. Rapid adjustment to shifting consumer preferences 
2. Data-driven inventory prioritization 
3. Optimized marketing resource allocation 
4. Competitive pricing strategies that evolve with the market 

The data is clear: dealers who closely monitor supply, demand, and pricing dynamics—and quickly act on these insights—are better positioned to thrive despite unprecedented volatility. Today's successful dealers maintain their fingers on the real-time pulse of the market, ensuring their inventory is appropriately prominent, positioned, and priced in this uncertain landscape. 

Ready to learn more? Schedule a time, and one of our MarketAI specialists will guide you through a 15-minute demo over Zoom. Get an inside look at your competitive landscape and see how we can transform your dealership's approach to inventory visibility.