Since KAR’s last insights post on data through June 28, there has not been much change in the trends seen on the KAR Global interactive dashboards; market day supply is holding steady at around 35 days across the U.S., new listings still trail new sales, and buyer engagement remains down year-over-year.
The persistence of the new listings and sales gap and decreased year-over-year buyer engagement is not surprising as the supply constraints in our industry have not resolved over the past few weeks. Yet, the lack of change is surprising in the Average Days of Used Vehicle Retail Supply dashboard.
Since our last insight post predicted states would level out at around 30 days supply, several states including Texas, Florida and Nevada have weathered large daily increases in coronavirus cases. These outbreaks rival those seen across the Northwest early in the pandemic that caused a near total shutdown of the retail market and market day supply numbers in the triple digits. Today, in states experiencing a high volume of coronavirus cases, we are not seeing the same elongated days supply; rather, these states’ days supply hold steady at around 35 days.
While the increase of coronavirus cases in several states across the U.S. is alarming, it is encouraging that—at this point—markets appear to be able to avoid the total shutdowns seen in March and April, likely by conducting business digitally.