Days Supply

Days supply is calculated by dividing current inventory count by the average daily sales rate. A dealer with 60 vehicles selling 2 per day has a 30-day supply. The industry benchmark for used vehicles is generally 30 to 45 days.

Days supply is a leading indicator of inventory health. Too high means carrying costs and aging risk are accumulating. Too low means missed sales from insufficient selection. Managing days supply proactively by adjusting acquisition pace and pricing strategy is central to used vehicle profitability.