New car dealerships are experiencing a change in supply and turnover. According to a study by iSeeCars, the average new car takes 54 days to sell, while new EVs take 70.6 days, and new hybrids take 49.5 days.
The study analyzed 463,000 new and used car sales from March 2024 and found that the average days on the market for new cars decreased by 21.6%, while used car sales increased by 30.5%.
These findings suggest that new vehicle sales are slowing down, which may be due to the impact of inflation and rising interest rates on consumers’ purchasing power. Although hybrids sell faster than electric vehicles, EV sales are growing slower due to the same variables.
Moreover, used vehicle sales have increased significantly in the last two months, with cars selling twice as fast as before in just 34.2 days. This acceleration is likely due to tax returns, as the used car purchasing season heats up. Used EV sales are slightly below average at 36.4 days, similar to new EV sales. On the other hand, used hybrids sell in just 30.4 days, faster than the average used car.
It is evident that buyers are attracted to vehicles that offer excellent residual value, low running costs, and long-term durability. This is evident from the fact that Toyotas make up 12 of the 20 fastest-selling new cars, out of which eight are hybrids. The top 20 list includes three luxury SUVs: the Mercedes-Benz G-Class, the Land Rover Range Rover, and the Cadillac Escalade. This proves the widely held belief that wealthy consumers are not letting macroeconomic worries slow them down. The Volvo XC40 Recharge is the only electric car featured in the top 20.
Although EVs are currently among the slowest-selling cars, the market still favors compact and medium SUVs, even when those vehicles include motors and batteries as part of their powertrain. The top-ranked Jeep Cherokee takes more than three times the average of 54 days to sell, at 169.7 days, while all of the slowest-selling used cars take 90 days or longer to sell. However, it’s also evident there is low buyer interest as the slowest-selling EVs take between 81 to 130 days to sell despite being on the market for a few years.
