New vehicle inventory on or in transit to dealership lots in the United States topped 3 million units in September 2024 — a first since the earliest stages of the pandemic, according to ZeroSum’s monthly State of the Dealer report.
The company, an auto retail agency that provides inventory-based digital marketing solutions for dealers, said the last time new vehicle inventory exceeded 3 million units was in April 2020. It then declined significantly to less than 800,000 units by the fall of 2021. However, inventories have grown steadily over the past two years.
“Surpassing the 3 million milestone for inventory is cause for reflection and also caution,” said Jeff Englishmen, Vice President of Dealer Success at ZeroSum, in a statement. “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.”
Englishmen added that it is not surprising that the gains in inventory are being accompanied by a rise in market adjustments. He said dealers should be focused on the relationship between these two metrics. Furthermore, he pointed to the decline in vehicle turn rates over the past 12 months, noting that it signals a more competitive marketplace as inventories have gone up.
“Slowing turn rates and growing incentives are natural results of higher supply. Dealers would be wise to ensure that their vehicles are competitively priced and marketed in this environment,” he said in a statement.
