New vehicle inventory grows while sales dip 7.5%, signaling a slowdown in the automotive market.
Signs of a Cooling Market
Auto Supply Rises Sales Decline. September brought clear signs of a slowdown in the automotive industry. According to ZeroSum’s October 2025 “State of the Dealer” report, new vehicle sales declined by 7.5%, even as inventory increased by more than 60,000 units—from 2.83 million to 2.89 million.
Despite this uptick in supply, vehicle movement fell sharply by nearly 85,000 units, with October projections indicating similar results ahead.
Resilience with Underlying Risks
“While the new car market has remained remarkably resilient in 2025, these results are a reminder that risks still exist,” said Josh Stoll, Vice President of Dealer Success at ZeroSum.
Stoll noted that September was soft in terms of vehicle movement, particularly given the rise in inventory. He emphasized the importance of dealers tracking their performance and comparing it with that of local competitors to stay ahead.
Major Market Shifts
Sales declines were widespread across the United States, with many major markets experiencing a month-over-month loss of more than 1,500 new vehicle sales.
- New York: -4,801 units
- Dallas/Fort Worth: -3,402 units
- Houston: -3,227 units
- In contrast, Los Angeles stood out as an exception, posting a gain of 542 units, demonstrating localized resilience amid broader declines.
Used Vehicle Trends: Sharp Movement Drop
The used vehicle sector also showed weakness in September. Movement dropped by more than 150,000 units, falling to 1.29 million after reaching 1.45 million in August.
Meanwhile, used inventory decreased by over 80,000 units, down from 1.98 million to 1.9 million, marking its lowest level since April.
Auto Supply Rises Sales Decline. Market Outlook: Staying Competitive Amid Uncertainty
“While a relatively stable Turn Rate, flat Days-to-Move, and elevated pricing picture are some silver linings, there is no getting around a 150,000 monthly drop in Used Vehicle Movement,” Stoll added.
He advised that with supply diminishing and demand softening, dealers must stay agile, monitor local market dynamics, and adapt their pricing and stocking strategies to remain competitive.