Looking for a deal on a new vehicle? Pseudo anonymous Twitter handle @GuyDealership (CarDealershipGuy) piqued his roughly 317,000 Twitter followers to the “Market Days’ Supply” metric — a method that tracks the most available new vehicles on the market relative to demand, which could lead to lower buyer costs.
What Is It? The market days’ supply metric is used by car dealers and manufacturers to track the amount of time it takes to sell a certain model of vehicle in a particular market.
It is calculated by dividing the number of vehicles in inventory by the average daily sales rate over a specified time period, usually 30 days.
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This metric is useful in determining the price of new vehicles as it helps dealers and manufacturers understand the supply and demand dynamics of a particular market.
If a particular model has a low market days’ supply, meaning it is selling quickly, it indicates that there is high demand for the vehicle and the dealer or manufacturer may be able to increase the price.
Alternatively, if a particular model has a high market days’ supply, meaning it is taking a long time to sell, it indicates that there is a low demand for the vehicle and the dealer or manufacturer may need to lower the price to incentivize buyers to make a purchase.
By tracking the market days’ supply metric, dealers and manufacturers can adjust their pricing strategies to ensure they are competitively priced and able to sell their inventory efficiently, ultimately helping maximize profits.
According to DealershipGuy, Jeep STLA is the most available brand with new inventory, meaning a buyer could potentially work out a deal with a dealership. While Hyundai HYMTF is the least available brand with new inventory.
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Photo by Ameer Basheer on Unsplash
Image and article originally from www.benzinga.com. Read the original article here.