Auto Supply Rises, Sales Decline
September brought signs of a cooling automotive market as new vehicle sales dropped by 7.5% and new vehicle inventory rose more than 60,000 units from 2.83 million to 2.89 million. The findings are part of ZeroSum’s October 2025 “State of the Dealer” report.
Despite the gain in supply, new vehicle movement fell by almost 85K; October projections are at similar levels.
“While the new car market has remained remarkably resilient in 2025, these results are a reminder that risks still exist,” said Josh Stoll, Vice President of Dealer Success at ZeroSum. “September was soft in terms of Vehicle Movement, especially in light of a 60,000+ increase in inventory. Dealers should closely monitor their performance, especially in comparison to local competitors.”
Sales declines occurred on a widespread geographical basis, with many major markets losing more than 1,500 units in new vehicle sales month-over-month. New York (-4,801), Dallas/Fort Worth (-3,402) and Houston (-3,227) were the top three markets in terms of total decline. Los Angeles bucked the trend, however, with a gain of 542 units.
Used Vehicle Movement dropped by more than 150,000 units in September (1.29 million units) after seeing a surge in the previous month (1.45 million units). Used vehicle inventory fell by more than 80,000 units in September from 1.98 million to 1.9 million. Used vehicle inventory dropped to its lowest level since April.