The chart above displays the average vehicle turn time for dealers across the U.S. in 2020. At the beginning of 2020, turn time was around 45 days and now — after much higher days to sell in March, April and June — turn time has returned to 45 days or lower. From a velocity standpoint, dealers are enjoying a market at pre-COVID levels.
As a result, dealers are generally not as cash strapped as they were earlier this spring. In May, when March cars were still sitting on lots, many dealers were weathering tight balance sheets, yet as turn time has returned to pre-COVID levels, market velocity and dealer economics have largely stabilized.
Though much has changed in our industry — including how most of us conduct business — dealers are turning cars just as quickly as they were before.
Source: KAR Global dashboards. Dashboard data, projections, estimates, industry data and information contained in the KAR Global dashboards are based on KAR Global’s wholesale marketplaces and/or information from third-party sources and management estimates.
Disclaimer: The opinions, views and analysis provided herein are not the views of KAR Auction Services, Inc., its subsidiaries or its management (“KAR Global”), and their accuracy is not warranted. KAR Global disclaims and will not be liable for any actual, consequential, indirect, special or incidental claims, damages, costs or expenses, whether foreseeable or unforeseeable, which may arise out of or relate to the use of or reliance on KAR Global Dashboard Insights, the DRIVIN® tools or the delivery of data via the DRIVIN® dashboards.