ZEROSUM "STATE OF THE DEALER" REPORT: FLATTENING DEMAND, INCREASED INVENTORY CAUSE FOR CONCERN IN DECEMBER AUTOMOTIVE RETAILING

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Dec 04, 2025, 10:53 ET

New and Used Vehicle Movement Projected to Fall Slightly as Dealership Inventories Continue to Grow

GRAND RAPIDS, Mich., Dec. 4, 2025 /PRNewswire/ -- The automotive sector is showing signs of waning demand, with new vehicle movement projected to fall from 1.11 million units in the current month to 1.1 million units in December, even as inventory rebounds with an increase of almost 40,000 units in November. Used and certified vehicle movement counts also are projected to fall—down by 10,000 and 12,000 units, respectively. The findings are part of ZeroSum's December 2025 "State of the Dealer" report.

New vehicle inventory rose to 3.09 million units in November.

For new vehicles, supply growth is continuing to outpace demand, as November new vehicle inventory jumped for the second straight month, to 3.09 million units from 3.05 million units in October. As a result, turn rates remained low in November at 36%, compared to a high of 42% in April of 2025.

"November brought another month of challenging sales conditions," said Athyna Moore, Director of Dealer Success at ZeroSum. "Inventory levels continue to rise, yet vehicle movement remains relatively flat, keeping turn rates below what we've seen earlier in the year. At the same time, prices are inching upward as model year transitions progress and OEMs account for tariff-related costs. In this environment, it's increasingly important for dealers to understand the competitive dynamics in their local markets so they can stay ahead and protect their profitability."

Average new vehicle prices rose for the third consecutive month, reaching $49,700, the highest since April 2025's $49,900 average. Dealers are increasingly turning to higher incentives to move vehicles off the lot. Average new vehicle incentives reached a yearly high of $2,261 per vehicle.

Average used vehicle prices rose to a yearly high $27,100, which is contributing to marketplace friction at a time when consumer confidence is on the decline. Used vehicle turn rates remained relatively flat, falling from 67% in October to 66% in November.

"Used vehicles are facing their own set of challenges," said Moore. "Inventory levels have stayed relatively steady, but movement dropped by more than 70,000 units month over month, signaling that consumers are becoming more cautions with big-ticket purchases as the year comes to a close. And while rising prices can sometimes point to strong demand, the jump to the highest level we've seen this year is more likely adding to that hesitation."

ZeroSum provides cutting-edge inventory-based market intelligence and digital advertising solutions tailored to dealers. The State of the Dealer report is the first and premier data source for the new, used, and certified pre-owned automotive markets.

Click here to download ZeroSum's entire State of the Dealer Report, including vehicle movement, turn rate, days-to-move, inventory, and pricing trends for new, used, and certified vehicles.

About ZeroSum

ZeroSum, an Advance Automotive company, is an industry leader in software, digital advertising, and market intelligence data. Powered by its SaaS platform, MarketAI, ZeroSum is simplifying and modernizing automotive marketing by leveraging artificial intelligence, market data, and scalability to acquire new customers. ZeroSum is the first and only company that matches consumer demand with automotive data in real-time for dealer marketing efficiency. For more information, visit www.zerosum.ai

About Advance Automotive

Created in 2017, Advance Automotive is a portfolio of automotive, technology, marketing, data, and software businesses providing AI-driven marketing solutions in the automotive industry. Advance Automotive includes independently operated agencies, ZeroSum, Adpearance, and Search Optics as well as data and analytics from Cloud Theory and dynamic ad creation solutions from Hoot Interactive.. Advance Automotive is part of Advance Local, a key unit of Advance, a privately held company founded in 1922.

Advance's portfolio of exceptional companies includes: