Car Dealership Inventory Quick Facts
- A vehicle history report reveals essential information: When the car was listed for sale.
- Many dealers don’t allow a car to sit unsold for more than 60-90 days.
- As a used car shopper, your best chance for a bargain could be among cars sitting for close to or more than 60 days.
You’ve probably considered several essential tips and tricks for negotiating the best price as you get closer to buying a car. How long a dealership has had a particular vehicle for sale can be another good negotiation tool, a tactic even savvy car shoppers sometimes overlook. Keep reading how to determine how long a car has been sitting on a lot and how it can help you get a better price on your next vehicle.
How Knowing Inventory Age Helps
In general, car dealerships become more willing to drop prices when they’ve had a car for a while. The main reason for this is obvious: When a dealership first gets a car, there’s no reason to lower prices if customers are immediately interested. But, the longer a dealership has a car without selling it, the less likely the dealership is to find an interested buyer. That’s when dealers start to drop prices to help the car sell, and that’s when you should swoop in and negotiate the best deal you can.
Used car dealers nationwide started August 2024 with an average of 41 days of stock, down 3% from a year ago. However, data shows a 31-day supply of older, higher-mileage vehicles under $15,000. The data is from Autotrader’s parent company, Cox Automotive, and its analysis of vAuto Live Market View.
Used car prices have steadily declined from pandemic-era records, though recently, they rose slightly.
How Long Has a Car Been on the Lot?
There are several ways to figure out how long a dealership has had a car. Paperwork is one: Check when the car’s paperwork was completed, indicating when it arrived at the dealer. If the title and other documents show the car has been sitting at the dealership for 60 days or more, you can likely negotiate a good deal.
Another tool to use is a vehicle history report from AutoCheck or Carfax. Most dealers are willing to provide a report showing a vehicle’s history, including whether the car was involved in any accidents or incidents. However, a vehicle history report also reveals another essential piece of information: when the car was listed for sale. Once again, you can use this information to your advantage when negotiating the price.
And then there’s the tried-and-true method of figuring out how long a dealer has had a car: Watch the inventory. If you see a vehicle listed in a dealer’s Autotrader inventory for more than a month or two, it’s likely the dealer is slowly becoming more willing to lower the price.
How Long Do Cars Usually Sit on the Lot?
Many dealers don’t allow a car to sit unsold for more than 60-90 days because they have other avenues, such as auto auctions, to move aging inventory from their lots.
How Long is Too Long for a Car to Be on the Lot?
Most used car dealers will tell you anything over 90 days is too long for a car to sit unsold. In fact, they would much prefer to turn a car in 60 days or less. However, a lot also depends on whether the dealer finances his or her inventory (floor planning) or owns the inventory free and clear. Floor planning involves interest payments on unsold inventory, which can mount up. That’s a clear motivator for a dealer to wheel and deal on aging inventory.
Our Take
In the car business, the term “aged inventory” refers to cars that have been sitting on the lot for so long that the dealer is ready to drop the price significantly to make a sale.
If you can figure out which models are aged inventory when buying a car, you typically can negotiate a better-than-average deal on your next vehicle.
Editor’s Note: This article has been updated since its initial publication.
