Pent-Up Demand, Days’ Supply Climbing on Same Used Track
According to CNW Research’s latest analysis, days’ supply of used vehicles and pent-up consumer demand for used models are rising in tandem.
Those pent-up demand trends appear to be particularly good news for dealers since CNW president Art Spinella said “the dam is breaking.” The firm reported in latest Retail Automotive Summary that the average delay in making that used-vehicle acquisition is at near low levels.
CNW estimated there are 112,500 used-vehicle intenders who are waiting in the wings to make an acquisition, up 11.9 percent from a year ago.
“In addition, eliminating the government shutdown data for October, the number of consumers still planning to make a used purchase is at the highest level of 2013 — 95.3 percent,” Spinella said.
Meanwhile, dealers appear to have plenty of used models in inventory for those consumers to buy.
CNW projected that there would be nearly a 50 days’ supply on dealer lots by the end of November, which will continue to put downward pressure on pricing.
“While still a far ways from the days when 60 days’ was the norm, the trend to more on-lot inventory is destined to keep floor traffic high, but prices lower than dealers would like,” Spinella said.
Spinella offered more commentary about pricing and November’s expected used-vehicle sales performance in this report from Auto Remarketing.