ZeroSum’s “State of the Dealer” Report attributes this increase to higher prices and used vehicle market pressures.
GRAND RAPIDS, Mich., Feb. 6, 2025 — The average new vehicle sales cycle lengthened by five days in January, reaching an 80-day high—a five-year peak. Furthermore, new vehicle sales are anticipated to decline from 1.07 million units in January to 1.03 million units in February. This market trend highlights the growing importance of used and certified pre-owned vehicle sales for automotive retailers this month.
This data comes from the monthly report released today by ZeroSum, a leading provider of software, data, and marketing automation solutions for the automotive industry.
New Vehicle Sales Cycle Reaches Five-Year High; Advertised Prices Remain Elevated
The average new vehicle sales cycle reached 80 days in January 2025, up from 60 days in January 2024 and 75 days the previous month. This marks the longest average sales cycle in five years. While advertised new vehicle prices showed a seasonal dip to $49,500 in January, consumer costs remain high, staying at or near $50,000 throughout 2024 and into 2025.
“The new vehicle market is at a critical juncture,” Stoll commented. “Current market dynamics have already kept prices higher than expected given the supply and demand situation, and North American tariffs could further increase them. With sales cycles reaching multi-year highs, additional price pressures on consumers could worsen an already difficult sales environment for dealers.”
Used Vehicles: Stable Supply, Falling Prices
Used vehicle inventory remained constant at 1.96 million from December 2024 to January 2025, while sales rose by 100,000 units. This led to a higher turnover rate—from 57% in December 2024 to 62% in January. Used vehicle prices continued their year-long decline, falling to $25,600 from $27,400 in December 2023, which is boosting sales but also impacting the new vehicle market.
Certified used vehicle inventory decreased from 219,000 to 210,000 but remained above 200,000 for the fourth consecutive month. Average prices for certified used vehicles were $37,000, $2,000 below their August peak, and the turnover rate in this sector also increased by 7 points to 82%—the first time it’s been above 80% since September 2024.
Both used and certified vehicles saw increases in their respective sales cycles—up 3 and 2 points, respectively.
“The used vehicle market presents a mixed picture at the start of the year,” said Josh Stoll, Senior Director of Dealer Success for ZeroSum. “Sales showed some resilience, but the longer sales cycles also indicate market friction. Dealers might benefit from focusing on this market segment in the coming weeks, given the continued decline in used vehicle prices.”
About ZeroSum
ZeroSum is a leader in software, marketing, and data. Its SaaS platform, MarketAI, simplifies and modernizes automotive marketing through AI, data, and scalable customer acquisition. ZeroSum is the first company to match consumer demand with automotive data in real time. For more information, visit .
SOURCE ZeroSum
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