Powered by Lexaca data, the Vincensus Report marks an exciting step forward for auto dealers, thanks to Lotlinx. This innovative initiative provides real-time insights into inventory management and OEM-specific data, equipping dealers with the tools they need to stay ahead in a competitive market. Drawing from a staggering 24 billion data points, Vincensus gives dealers an in-depth look at automotive trends, covering both new and used vehicles.
Vincensus offers valuable analyses on pricing, markdowns, and performance metrics, allowing dealerships to make smart, data-driven decisions that reflect current market conditions. This report is an essential companion for auto retailers who want to unlock the full potential of their inventory management while being proactive in their operations. Every month and quarter, the Vincensus Report will provide dealers with deep, real-time insights into the trends affecting OEM-specific and dealership inventory for both new and used vehicles, with essential information on vehicle pricing and markdowns.
See the report here and past versions.
Key Findings from the 2024 Q2 Inaugural Vincensus Report
- The report highlights how each OEM aligns with industry benchmarks, allowing auto retailers to identify competitive positioning and buyer demand, utilizing data trends month-over-month and quarter-over-quarter for best inventory management.
- Overall vehicle sales decreased by 5% for new and 7% for used vehicles in June 2024, hugely influenced by the CDK Global cyberattack that occurred on June 18th, 2024.
- New vehicle inventory increased by 7%, leading to a rise in day supply by 6 days, reaching 74 days. Used vehicle day supply remained steady.
- Aged inventory continued to increase, with 50% of new vehicles and 48% of used vehicles classified as aged (over 45 days for new and over 30 for used).
- Brands like Volvo experienced the largest sales decrease at 19%, while Chrysler recorded a 20% increase in sales. Cadillac’s aged inventory grew by 14%, mainly in EVs.
- Lotlinx customers maintained 2% less aged inventory for new vehicles, with 58% of new vehicle brands outperforming the market in June.
- From a YoY standpoint, the average last listed price for new vehicles dropped by 4%, with 39% of sales across Nissan’s models involving markdowns.
What The Report Means To Auto Dealers
The CDK Global Cyberattack Caused Ripple Effects on Sales and Inventory Management
The recent CDK Global cyberattack has cast a shadow over dealership operations, leaving many auto dealers grappling with the chaos. Many dealers found themselves reverting to manual processes, causing a notable 5% decrease in new vehicle sales and a 7% drop in used vehicle sales. This incident tells us that our dealerships need stronger cybersecurity than ever before to protect their inventory with modern, AI-driven solutions like Lotlinx Sentinel.
This incident has crippled the software systems that manage critical functions such as scheduling and record-keeping for nearly 15,000 car dealerships across North America. As the chaos persists, the estimated financial toll has reached millions, with projections indicating that if the outage continues for three weeks, the direct losses could amount to approximately $944 million due to business interruptions.
Bernard Irvin, a Ford salesperson from Greenville, South Carolina, expressed concern over the financial implications to CNN, stating, “It’s going to affect payroll here. Why wouldn’t I receive my normal pay? I don’t really understand what this is all about.”
Even contractual obligations became difficult to fulfill; one worker highlighted how the system failure hindered the ability to track customer interactions and sales, dubbing the situation a detrimental blow to their livelihoods. The outage began after two cyber incidents, forcing dealerships to revert to manual processes, which are inefficient and cumbersome. This disruption affects immediate sales and raises long-term concerns regarding cybersecurity resilience within the automotive industry.
There are Continuous, Steady Inclines in New Vehicle Inventory and Used Vehicle Carryover
According to the report, there has been a 7% increase in new vehicle inventory and steady levels in used vehicle carryover. However, with the day supply for new vehicles rising by six days, dealers are encouraged to strategize on pricing and markdowns to manage the surplus and stimulate sales of aged inventory.
Aged Inventory is Still a Big Concern
Aged inventory remains a critical concern for dealers, with increases of 2% for new vehicles and 5% for used vehicles each month. Regular inventory reviews and targeted markdowns are essential strategies for alleviating this issue and improving turnover rates since a big portion of vehicles on lots are aged.
Sales Data Variability is a Mixed Bag
While the magnitude of markdowns and sales percentages were consistent, the report highlights a 4% year-over-year decline in the average last listed price. This decline suggests that dealerships must acknowledge changing market dynamics, especially as certain brands, like Acura, show alarming drops in new vehicle sales with high percentages of aged inventory.
Overall, recent sales data reflect a mix of promising and concerning trends. For example, Chevrolet’s Trax has increased by 19%, showing a potential promotional opportunity. On the other hand, the 11% decline in Equinox sales calls for dealers to reassess inventory levels and consider markdowns. Despite a slight overall sales volume increase of 1% month-over-month, the rising day supply is also a clear signal for dealers to focus on managing aged inventory, which accounts for nearly half of their listings.
Recommendations for Dealers
- Daily Inventory Scrutiny: Regularly review your inventory to identify slow-moving units for timely action.
- Implement a Markdown Strategy: Establish a data-driven markdown approach to stay competitive and mitigate risks associated with aging inventory.
- Stay Informed: Keep up with market fluctuations to remain responsive to changes in consumer demand.
By heeding these tips, auto dealers can better manage current market challenges and secure their performance in the months ahead. Request a free demo from Lotlinx for more inventory insights.