As the summer demand wave receded, September marked a cooling in both the new and used vehicle markets. New vehicle demand saw a slight drop of 2% MoM, while used vehicle sales experienced a steeper decline of 10%. The easing demand, coupled with increased inventory, led to a slight rise in vehicle day supply for both new and used. Fresh inventory of 2025 models, which made up more than half of all newly listed vehicles, also contributed to a 5% MoM increase in the percent of aging 2024 model year units. Hybrids continued to improve performance, faring better than gas vehicles for both new and used. Dealerships, particularly those using platforms like Lotlinx, managed carryover and aged inventory more effectively, setting the stage for a competitive holiday season.
New Vehicles:
- New vehicle sales fell slightly MoM as day supply continued to creep up, increasing by 4 days to 76 days, an increase of 27 days YoY.
- Aging saw small improvements as fresh 2025 units entered the market, accounting for over half of all newly listed vehicles. However, 2024 model year aged units increased by 5% MoM.
Used Vehicles:
- Used vehicle sales slowed by 10% MoM allowing inventory and day supply to increase by 4 days to 41 days.
- Demand for used vehicles dropped by 13% coming off increased demand over the summer.
Recommended action steps for upcoming months:
- Dealers will need to manage economic pressures, rising inventories, and shifting market dynamics while adapting to a more digital, consumer-centric business environment.
Proactive inventory management, competitive pricing strategies, and a focus on customer engagement will be critical to navigating these challenges effectively.