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What’s market days’ supply, and what does it mean for your dealership?


Market days’ supply is a pivotal metric in used car success, offering valuable insights into the performance potential of specific vehicles on dealership lots.

Essentially, Market days’ supply gauges how swiftly a vehicle is likely to sell based on current inventory and historical sales data. This metric is calculated by dividing the available supply by the average daily retail sales rate over the preceding 45 days.

Simply put, if a car has a low market days’ supply, it means it’s in high demand. That’s good news for dealers because it suggests they can sell it quickly and make a tidy profit. But if a car has a high market days’ supply, it’s not flying off the lot. Dealers might need to lower the price to get it moving.


What’s the current benchmark for market days’ supply?

Cox Automotive Australia’s market days’ supply retail benchmark is 70 days, as measured over the preceding 45 days, so whether you are reviewing your current inventory or at an auction, considering what vehicles to bring to your yard, Market days’ supply is the number that you should be looking at when considering how long that vehicle will potentially be at your dealership.


Now, here’s where AutoRadar comes into play. With AutoRadar’s market insights tool, you can gain invaluable data regarding vehicles across all makes and models. This feature empowers dealers to curate their inventory with vehicles that align with buyer preferences and market demand. By utilising various search criteria such as popular vehicles, fast-moving models, lower market days’ supply, and most searched options, dealerships can optimise their inventory management strategies and enhance sales performance.



Want to dive deeper into understanding market days’ supply and other essential insights?


Our team is here to guide you through a demonstration, showing you firsthand how you can leverage market days’ supply in AutoRadar to make informed decisions. Contact us today and our team will be in touch to schedule an obligation-free demonstration.