The recent dealer management system (DMS) outage that impacted sales and inventory reporting in the automotive industry has continued to have a significant impact on the market. As of August 1, 2024, the total supply of used vehicles on dealer lots across the U.S. stood at 2.17 million units, a 3% decrease from the previous year and from the 2.22 million units at the start of July. This decline in inventory has led to fluctuations in days’ supply and sales figures, which are slowly stabilizing as the full effects of the outage are being realized.
Despite the challenges posed by the outage, used vehicle sales saw a surge in July, particularly towards the end of the month. This increase in sales drove down the days’ supply to 41 days, a significant 12-day drop from the beginning of July and a seven-day decrease compared to the previous year. Sales during this period were up 27% month over month and nearly 15% year over year, indicating a strong recovery from the disruptions caused by the outage.
The average listing price for used vehicles saw a slight increase at the start of August, rising to $25,415 from $25,246 in July. However, this price is still 5% lower than the previous year. The rise in listing price was primarily driven by a shift in the mix of vehicles being sold, with a higher proportion of 0-to-2-year-old cars being sold. Despite this increase, affordability remains a concern for consumers, especially for those looking for vehicles priced under $15,000, where supply is extremely limited, with only 31 days’ supply available—29% below the market total.
The top five sellers for the month, priced at an average of $23,922, included Ford, Chevrolet, Toyota, Honda, and Nissan, which collectively accounted for 51% of all used vehicles sold. As the market continues to adjust to the recent disruptions caused by the DMS outage, it presents both challenges and opportunities for dealers and consumers alike.
In conclusion, the automotive market has experienced significant volatility in the wake of the DMS outage, with fluctuations in inventory, sales figures, and pricing. Despite these challenges, the market has shown resilience, with a strong recovery in used vehicle sales towards the end of July. Moving forward, dealers and consumers will need to adapt to the changing market conditions and seize the opportunities that arise in order to navigate through this period of uncertainty.