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Elevating Automotive Retail: ZeroSum's Inventory-Focused Insights Drive Dealer Advantage

GRAND RAPIDS, Mich., June 3, 2024 /PRNewswire/ -- The competitive landscape of the automotive retail industry is continually evolving, with dealership performance now hinging on the strategic use of inventory. ZeroSum, a trailblazer in automotive retail strategy, has unveiled its latest findings in the form of the June State of the Dealer Report, offering an in-depth analysis of current market trends affecting new, used, and certified vehicle sectors. This groundbreaking report uncovers that despite record vehicle sales, dealerships confront a series of hurdles due to the influx of choices available to consumers.

Figure: The steady increase in vehicle supply is captured in this depiction of average new vehicle inventory.

The report's findings showcase the surge in vehicle sales, reaching new heights unseen in the past few years. This elevation is primarily attributed to the increase in inventory supply rather than a leap in sales efficiency. Nonetheless, the saturation of market options dictates that dealers must place greater emphasis on distinguishing their inventory. To navigate this, dealerships need to evaluate and boost their marketing strategies to cater to consumer preferences effectively.

Market Analysis: Strong Movements in Vehicle Sales

The June State of the Dealer Report highlights a robust momentum across all vehicle categories—new, used, and certified—indicating a healthy appetite for vehicle consumption. A notable uptick in new and certified vehicle inventories provides prospective buyers with a more diverse range of choices, fueling the sales growth. May statistics revealed a climb to 2.89 million units for new vehicles, a 2.8% rise from April, inching the industry towards the 3.0 million mark. Notably, the stock of certified vehicles has reached a pinnacle last observed at the dawn of the pandemic period in April 2020.

Core metrics such as turn rates and the time taken to move vehicles off the lot are stabilizing at elevated levels. These indicators suggest that the market’s growth spurt is predominantly a result of expanding supply rather than an uptick in sales conversion rates. "The new vehicle movement count is very encouraging and points to a continuing resilience in the marketplace," remarked Jeff Englishmen, Vice President of Dealer Success at ZeroSum. He further articulated the resilience of the marketplace, emphasizing the tenacity in the face of fluctuating prices and stubbornly high-interest rates. It is the upscaling inventory that has been instrumental in drawing consumer attention and purchases.

The seasoned automobile market outlook presented in ZeroSum's analysis is further corroborated by indications of strength in the used vehicle domain. For a second consecutive month, used vehicle inventories saw a modest rise. More significant, however, is that despite the inventory plateau since last fall, the used vehicle segment showcases sustained robustness, breaking the 1.3 million mark in movement twice within a three-month time frame. The 30-day forecast keeps optimism alive, anticipating a steadfast continuation of this trajectory with an expected count of 1.29 million.

"The recent strength in used vehicle movement is a welcome development, but doing so in light of a flat inventory picture is even more impressive," Englishmen noted. He highlights an imperative factor in this sustained uptrend—the price disparity between new and used vehicles—poised to shape consumer inclination and market dynamics for the foreseeable future.

Challenges and Opportunities: Dealer Dynamics

In the grand scheme, the report evaluates critical implications for dealerships, pondering whether selling vehicles will become more testing or simplified in forthcoming months. Assessments point towards a generally more accessible market; however, individual dealers face the paradox of choice. With diversity in vehicles soaring, competitive strife intensifies. Consumers presented with copious options require dealers not just to meet but to exceed their inventory support efforts, bolstering their presence in an ever-discerning marketplace.

For an encompassing perspective on this industrious analysis, interested parties can click here to delve into ZeroSum's full June State of the Dealer Report. The comprehensive coverage touches upon vehicle movement, inventory and pricing trends, turn rates, and days on the market for the new, used, and certified stacks.

About ZeroSum: Simplifying Automotive Marketing

ZeroSum stands as a paragon in the high-tech software, marketing, and data domain. Employing its state-of-the-art software-as-a-service platform, MarketAI, the company disrupts and modernizes automotive marketing. It leverages a combination of artificial intelligence, comprehensive data analytics, and scalability to propel customer acquisition. ZeroSum is the first entity that eloquently synchronizes consumer interest with real-time automotive data, immensely amplifying dealer marketing efficacy. For further insights and information, please visit www.zerosum.ai.

For media inquiries, ZeroSum is represented by Mike DeVilling and Jennifer Haun, reachable for additional clarifications and information. Those interested in understanding better the implications of the report or the services offered by ZeroSum can reach out using the contact information provided.

Mike DeVilling
Email: mike.devilling@zerosum.ai

Jennifer Haun
Email: jennifer.haun@zerosum.ai

SOURCE: Advance Local Media LLC d/b/a ZeroSum

Forward-Looking Strategies for Dealers in a Dynamic Market

ZeroSum's comprehensive analysis serves as a compass for dealerships navigating the intricate waters of the automotive industry. It underscores the importance of robust and strategic inventory marketing in a landscape where product surplus enhances consumer power. Dealers must not only recognize the winds of supply and demand but also steer their marketing efforts to highlight their distinctive selling points.

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