Published on Jan 10, 2022
The average number of days that a used vehicle is spending in the inventory of several online car dealers has increased over the past month, according to a Capitol Forum analysis of those companies’ websites.
CarMax (KMX), Vroom (VRM), and DriveTime all saw the average age of their respective inventories grow by between 15 and 18 percent over the past month. The current average age of the inventories of CarMax, Vroom, and Drivetime is 31, 33, and 46 days, respectively.
Carvana (CVNA) and AutoNation (AN) saw lower relative increases in the age of their inventories, as the average age over the past month grew by 8.3 and 7 percent, respectively. However, the average age of their respective inventory was already high to begin with and now stand at 43 days each.
Growth in inventory age could be an indicator that consumer demand for used vehicles may be cooling and could cause problems for some retailers. Last year, Vroom management disclosed that production and delivery issues had caused some of its inventory to age, which forced the company to liquidate that inventory through wholesale channels at a lower price.
CarMax, Carvana, and Vroom Data