Slowing auto sales market continues into November, with days on market rising. What can dealers do to fight the tide?
The average days on market across the U.S. increased four days from October to November, from 105 to 109, continuing the auto slowdown seen in October.
According to Carketa’s November Inventory Turn Benchmark Report, vehicle sales continued to slow in November. High interest rates and slowing demand have softened the consumer auto market, though many dealers are making pivots to combat the tough market through smarter acquisition strategies, faster inventory turn and more aggressive pricing strategies. (Scroll down for some of Carketa’s expert suggestions on how to combat the current market.)
States with the Highest Days on Market
The states with the highest days on market — or put plainly, those with vehicles that have been on market the longest — did not change from October’s report. The District of Columbia continues to be far and away the state with the highest average days on market in the country.
Vermont, notably, was the only state whose average days on market actually dropped from October to November, suggesting some positive signs in the state’s car market.
- District of Columbia: 267.8
- Vermont: 221.8
- Nebraska: 135.6
- Hawaii: 126.9
- Virginia: 125.3
States With the Lowest Days on Market
Wyoming dropped off the top five states this month, though remains in the top 10 states with the lowest days on market. New Hampshire continues to dominate the list of states with the healthiest days on market.
- New Hampshire: 86.06
- North Dakota: 90.4
- Wisconsin: 90.7
- Colorado: 90.88
- Maine: 93.6
States Experiencing the Largest Market Slowdown
The states below saw the largest slowdown in average days on market from October to November, with one state in particular, the District of Columbia, seeing a double-digit slowdown.
- District of Columbia 12.57%
- Alaska: 8.9%
- Maryland: 7.7%
- Wyoming: 7.5%
- Washington: 7.47%
- Rhode Island: 7.46%
- West Virginia: 6.4%
- North Carolina: 6.3%
- Nevada: 5.93%
- Michigan: 5.92%
5 Strategies for Getting Ahead of the Market
This economy is tough. Combatting slowing demand means focusing on a few key areas.
- Make smarter buys. If you don’t know what you can retail it for and what the right buy price is, you’re buying wrong. (Take a peek at how the Chrome extension can help you appraise with a couple clicks.)
- Stay on Top of Market Data. The market is changing more rapidly than ever – live market data is pivotal to drive the right list price and keep you competitive.
- Limit flooring costs. Keeping inventory flowing is more critical than ever to lower flooring costs and maintaining profitability.
- Set a profit per vehicle goal (and stick to it). Track the metrics that matter.
- Increase inventory turn. When margins get tight, turning more vehicles is an easy way to keep revenue high.
Meet with a Carketa Inventory Specialist for a short inventory consult to understand how to increase inventory turn and make more money – even in this market.
