Average days on market nationwide hit 105 in October, suggesting a slowing auto market
The average days on market across the U.S. increased three days from September to October, from 102 to 105, showing a slowing automotive sales market according to Carketa’s recent Inventory Turn Benchmark Report.
Using Carketa’s live market data on 20M+ vehicle listings to determine the average days on market across thousands of dealerships in the U.Ss, we looked at frontline inventory across all 50 states and the District of Columbia. The calculation took into account the average days on market for listings within one dealership to produce a by-dealership average that gauges the health of dealership operations.
The increase in days on market was driven by slowing growth in quite a few states. D.C., Hawaii, Maine, North Carolina and Georgia increased days on market more than 5% month over month. The District of Columbia and Hawaii both saw double-digit increases from September to October.
The slowing market was not exclusive to one region – days on market increased across the Midwest, Northeast, South and West. Hawaii and the District of Columbia had the highest increases month over month, each cracking double digits. However, with market size smaller in those states than others, they may be more heavily impacted by market changes.
States with the Slowest Vehicle Inventory Turn
- District of Columbia – 237.9 average days on market
- Vermont – 228.1 average days on market
- Nebraska – 130.6 average days on market
- Hawaii – 123.0 average days on market
- Virginia – 121.3 average days on market
Most of the fastest inventory turn states remained unchanged from September to October. However, New Mexico improved days on market nearly 4% month over month, putting it within striking distance of making the top 5.
States with the Fastest Vehicle Inventory Turn
- New Hampshire – 81.8 average days on market
- Wisconsin – 85.9 average days on market
- North Dakota – 86.2 average days on market
- Colorado – 86.7 average days on market
- Wyoming – 87.4 average days on market
Key Trends Across the Automotive Market
Interest rates, interest rates, interest rates.
Overall the story of the slowing auto market in October is tied to increasing interest rates cooling buyer appetite. Many dealers are getting more aggressive in their deals and promotions to counteract consumer wariness over rising rates. With promos and discounts eating into profit margins on existing inventory, protecting margin by turning inventory quickly is more important than ever. If you’re interested in learning more about the October Inventory Turn Benchmark Report, schedule time with a Carketa rep to get a frontline inventory analysis and see how Carketa can help you increase inventory turn and protect your profits.