New vehicle inventory tops 3 million units for the first time since beginning of global pandemic

Marketed Discounts Triple Over the Past Year

GRAND RAPIDS, Mich., Oct. 3, 2024 /PRNewswire/ -- New vehicle inventory on or in transit to auto dealer lots hit a significant milestone, topping 3 million units in September 2024. It is the first time since the earliest stages of the global pandemic that inventory has surpassed this mark according to ZeroSum's monthly "State of the Dealer" report for October.

New vehicle inventory last exceeded this level in April 2020, and dropped dramatically to less than 800,000 units by the fall of 2021 due to Covid-related supply chain disruptions. Inventories grew steadily over the past two years, but had not reached this recovery milestone until the latest reporting period.

However, the return in supply comes with a caution for the automotive industry in the form of an increased need to discount and incentivize vehicles. The report also details a significant rise in Market Adjustments, which measure the discounts and incentives that dealers are listing on their vehicle detail pages. These reductions have more than tripled over the course of the past year.  

"Surpassing the three million milestone for inventory is cause for reflection and also caution," said Jeff Englishmen, Vice President of Dealer Success at ZeroSum. "On one hand, it is a testament to the resilience of the automotive industry. But it also points to a need to balance supply with the incentives required to sell vehicles. It is not surprising that the gains in inventory are being accompanied by a rise in market adjustments, and dealers should be focused on the relationship between these two metrics."

In the past 12 months, dealers have also had to contend with a decline in vehicle turn rates, signaling a more competitive marketplace as inventories have grown. The current figure of 39% is ten points lower than a year ago, which has triggered the need for these more aggressive discounts.

"Slowing turn rates and growing incentives are natural results of higher supply," Englishmen said. "Dealers would be wise to ensure that their vehicles are competitively priced and marketed in this environment."

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