In the world of automotive sales, the days’ supply of vehicles on dealer lots is a crucial metric that can provide valuable insights into the market. Dealerships aim to keep a healthy balance of inventory to meet customer demand while minimizing costs associated with holding onto vehicles for extended periods. Today, we take a closer look at the vehicles with the highest and lowest days’ supply, shedding light on which models are struggling to find buyers and which ones are flying off the shelves.
When a vehicle sits on a dealer lot for an extended period, it can lead to increased costs for the dealership. To entice buyers and clear out inventory, dealers often resort to offering significant rebates and discounts on these vehicles. The longer a vehicle remains unsold, the more it costs the dealership in terms of interest on their floor plan. With interest rates currently on the higher side, dealers are feeling the pinch of carrying excess inventory. It is more financially prudent for a dealer to sell a vehicle at no profit or even at a loss if it has been languishing in inventory for a while.
A 60-day supply of vehicles is considered optimal in the industry. This means that if no new vehicles were to arrive, the current inventory would be completely sold out within two months. Vehicles that exceed this threshold are considered to have a high days’ supply, indicating a slower rate of sales.
Taking a look at the vehicles with the highest days’ supply, we see models like the Acura ZDX and Fiat 500e leading the pack with 599 and 459 days respectively. These electric vehicles are struggling to find buyers, possibly due to limited demand or other market factors. Other models like the Dodge Hornet, Maserati Levante, and Audi Q4 e-tron also have high days’ supply, indicating a challenging sales environment for these vehicles.
On the flip side, we have the vehicles with the lowest days’ supply, showcasing strong demand and quick turnover. Models like the Toyota Camry and Honda CR-V boast a mere 20 days’ supply, indicating high popularity among consumers. Other top performers include the Toyota Sienna, Range Rover, and Lexus NX, all of which are in high demand and selling quickly.
In conclusion, the days’ supply of vehicles is a critical factor in understanding the dynamics of the automotive market. Dealerships must strike a balance between stocking enough inventory to meet demand while avoiding excessive holding costs. By keeping an eye on which vehicles are languishing on lots and which ones are in high demand, dealers can make informed decisions to optimize their inventory and maximize sales.