Aging vehicles are yet another challenge dealerships will be facing in the coming months as new vehicle carryover inventory has increased by eight percent so far this year according to the Q1 2025 Quarterly Vincensus Report from Lotlinx.
That rise in carryover inventory saw it hit a total of 60 percent, a 14 percent increase from a year ago. It was also not exclusive to just new vehicles as carryover for used inventory was up five percent quarter over quarter, now sitting at 53 percent.
Curiously, this trend comes even as supply begins to tighten throughout the auto industry due to the uncertainty of import tariffs and a late march sales surge.
Vehicle Supply Down, Used Sales Up
New vehicle day supply dropped to 77 days in Q1, a three day drop over Q4 2024, but still up 19 days year over year. The average does not tell the whole story though as some brands such as Ford, Volvo and Infiniti are at more than 100 days supply while Lexus, Toyota and Honda are at 50 days or below. Unsurprisingly these trends held for carryover inventory as well, with Toyota having less than 40 percent carryover and Ford sitting around 70 percent for new vehicles.
Overall new vehicle sales were down three percent quarter over quarter but were up 19 percent in March after the threat of import tariffs drove customers to dealerships. Used vehicle sales steadily climbed, rising 10 percent quarter over quarter, as affordability remains a key driver for many buyers. Average list prices for used vehicles declined three percent in the quarter and four percent year over year. Used day supply dropped three days quarter over quarter as well, now at 42 days. It also remains fairly even across all brands.
For dealerships, the big takeaway is clear: staying competitive means proactively addressing aged inventory while navigating the pricing ripple effects sure to come as the year progresses.
EV Adoption Slowing
Electric vehicles took a bit of a hit in Q1 as EV sales declined three times more than ICE and hybrid vehicles. However, even as adoption begins to slow, turnover actually improved as EV day supply dropped by seven days year over year. This is especially promising for EVs as ICE day supply is still up 21 days and hybrids are up 13 days from this time last year. In fact, electric vehicles currently have the fastest turnover rate of the three at 64 days supply in Q1.
They have also seen overall price decreases as EV prices decreased six percent year over year and hybrid prices dropped four percent. Meanwhile ICE vehicle prices rose two percent since Q1 2024.
Brand Trends
A few brand results stood out in the report as BMW’s EV momentum surged, fueled by strong demand for its i4 model. Conversely, ICE vehicles now account for less than 20 percent of the brand’s sales mix, reflecting its strategic pivot to electric mobility. Chevrolet had a three percent decrease in sales volume quarter over quarter but was buoyed by the Equinox’s 17 percent sales increase. Chevrolet also reduced its aged inventory on models like the Traverse by 67% year over year thanks to a redesign.
Chrysler had the largest decrease in sales in the quarter, dropping 22 percent from Q4 while it also had an 18 percent decrease in sales with a markdown, the most of any brand. Cadillac had the largest increase in day supply, increasing by 41 days year over year, but did see EV growth from models like the Escalade IQ and Optiq. Still LYRIQ sales faltered, dropping 41 percent compared to last quarter.
Ford’s numbers mostly moved with the market, but did have a highlight for its aggressive discount strategy. The Expedition Max recorded 91 percent of sold units with markdown, leading all models in cost reduction. Toyota and Mazda were two of the only brands that saw new vehicle sales volume increase in the quarter, rising three and two percent respectively. Toyota also had the three quickest turnovers in the market with the Grand Highlander, Rav4 and Sienna at 19, 21, and 21 days respectively.
If you’re looking for even more insights from the quarter, access the full Q1 2025 Quarterly Vincensus Report here.
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