GRAND RAPIDS, Mich., Feb. 6, 2025 — The pace of new vehicle sales is slowing, with the average time to sell reaching 80 days—a five-year peak. Furthermore, the vehicle turnover rate remained stagnant at 35%, near pre-pandemic lows, for the fourth consecutive month. This data is from Cloud Theory’s latest monthly automotive industry report, released today.
New vehicle inventory dropped to 2.96 million units in January 2025, down from 3.23 million in December 2023, but up year-over-year from 2.54 million in January 2024. Although average advertised prices for new vehicles showed a seasonal decrease to $49,500 in January 2025, they have remained near or above $50,000 for over a year.
“While some of this month’s trends align with typical seasonal patterns, a longer-term factor suggests a tougher sales climate,” explained Rick Wainschel, Vice President of Data Science and Analytics at Cloud Theory. “The impact of sustained price increases and extended sales cycles should concern all manufacturers. And, if threatened tariffs become a reality, these market challenges could escalate.”
With higher-priced vehicles remaining unsold for longer periods, manufacturers and dealers are increasingly resorting to incentives. Average advertised discounts on dealer websites in January 2025 rose 33% to $1,953 compared to January 2024.
Lexus and Toyota Lead Inventory Efficiency Index
Toyota Motor Company brands continue to dominate Cloud Theory’s patent-pending Inventory Efficiency Index, which offers a real-time assessment of supply and demand for all makes and models across all regions.
Lexus leads with a score of 377.6, followed by Toyota at 256.3. Importantly, both brands have seen significant inventory drops. Toyota’s in-stock supply is down 13% year-over-year, while Lexus’ decrease is substantially larger—a 63% reduction from a year ago.
“Given the importance of pricing in the automotive market, it’s crucial to note that brands with higher Inventory Efficiency Index scores are better positioned to maintain premium pricing,” stated Matt Sharp, Chief Digital Officer and General Manager at Cloud Theory. “Whether due to supply constraints, strong brand reputation, or a combination, these brands are better equipped to navigate the challenges of elevated prices. However, all automakers should be aware of the broader market forces and make informed investment decisions accordingly.”
The Inventory Efficiency Index assigns scores based on relative inventory and sales data compared to competitors.
- A score of 100 indicates balanced supply and demand.
- A score above 100 signifies more efficient inventory sales than average.
- A score below 100 suggests opportunities to better align supply and demand.
About Cloud Theory
Cloud Theory is more than a concept; it’s a data-driven solution that blends advanced technology with automotive expertise. Designed for automakers, agencies, and affiliates, Cloud Theory offers real-time market insights, empowering clients to make strategic decisions. By combining vast data sets, interactive tools, and expert guidance, we help clients navigate market complexities and achieve success. Learn more at . To learn more about our entire portfolio of automotive brands, visit .
SOURCE Cloud Theory