Auto dealer inventory days supply estimates how many days of sales the dealer's current vehicle inventory could support using an issuer-defined recent selling or cost-of-sales pace.
AutoNation ended 2025 at 45 days of new-vehicle supply and 38 days of used-vehicle supply. Sonic reported roughly 48 days for new vehicles and 31 days for used vehicles in its franchised dealership segment.
Days supply is a pricing-pressure gauge
Very lean inventory can restrict customer choice but may support stronger front-end pricing. More abundant inventory can improve selection and unit availability while increasing aging risk, carrying costs, and the incentive to discount older vehicles.
That relationship helps explain why new-vehicle gross profit per retail unit can fall as supply normalizes from unusually tight conditions.
The denominator is not standardized
AutoNation labels its 2025 new-vehicle measure using an industry standard of selling days, while its used-vehicle table uses trailing-calendar-month days. Sonic calculates its franchised inventory days on a trailing-quarter cost-of-sales basis.
Those methods are directionally related but should not be silently treated as identical. A peer table needs the exact numerator, sales or cost denominator, period, in-transit treatment, and segment scope before the figures become directly comparable.
New and used inventory deserve separate reads
Used vehicles carry a different sourcing and aging problem from new vehicles. Sonic says it generally targets a 25- to 35-day used-vehicle supply in franchised dealerships to limit market-pricing exposure.
That makes days supply especially useful beside used-vehicle gross profit per retail unit. Faster turns can reduce exposure to falling wholesale values, but inventory that is too lean can also constrain retail volume.
Primary sources: AutoNation 2025 Form 10-K and Sonic Automotive 2025 Form 10-K.
Part of the Automotive Dealership Economics
See It in Company Research
These companies are examples of how the concept is reported or discussed in public filings. Definitions can differ by issuer; these links open company research rather than a normalized metric comparison.
- ANOpen operating-model research →10 of 10 reviewed concepts in Automotive Dealership EconomicsInventory pressure and operating leverage2 of 2 bridge concepts supportedContinue through this bridge:Dealer SG&A / Gross Profit
- SAHOpen operating-model research →6 of 10 reviewed concepts in Automotive Dealership Economics
Explore other companies in this operating model
These companies are linked to at least two other reviewed concepts in the same operating model, but are not currently linked to this concept. This is broader research navigation, not evidence that the company reports an equivalent metric.
Continue Research
Continue from the concept into the Grizzly Bulls research surface that best matches the next question. These links are research continuations, not recommendations or required steps.
Compare vehicle inventory pressure
Compare vehicle availability and aging while preserving each dealer's selling-day or cost-of-sales methodology and new-versus-used scope.
Explore more topics in the Financial Research Encyclopedia.