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Among dealers and car manufacturers, the terms are “day to turn.” “days on lot,” or “supply of inventory.” It is the number of cars available on dealer lots. At the start of October, the figure across the United States was 2.87 million.
According to Cox Automotive, the average day’s supply across all brands was 84. It added, “At 84 days, the supply measure is now at the highest point since Q1.”
Some brands have such low inventory that dealers often cannot keep a full supply, as cars move out the door within five or six weeks of being delivered.
Toyota Motor Corp. (NYSE: TM) is the brand with the lowest supply level. The Cox data show its September supply was 39 days. Supply of its luxury brand Lexus was at 40 days. In each case, the figure is half the national average for the period.
The closest brand by the measurement was well behind. Honda’s figure was 66, or close to double the Toyota number.
At the far end of the spectrum, Lincoln’s figure was 142. Pickup brand Ram was next at 137.
It is hard to put a finger on why the Toyota figure is so low. It may be the brand’s high-quality reputation. The brand has been at or near the top of most quality studies for years. The same is true for Lexus. It is also possible that Toyota has better inventory management than other car companies.
Another reason for the number could be the breadth of models Toyota has. Its lineup includes over 50 models. In other words, it has something for almost any car buyer, from trucks and vans to sedans, crossovers, SUVs, and hybrids, as well as electric vehicles.
Toyota also has a wide range of prices. The Corolla sedan has a base price of $22,725. The average price of a new car in the U.S. is nearly $50,000. The hybrid version of the Corolla is priced below $25,000. The Corolla Cross crossover is also priced below that level.
At the highest end of its price span, Toyota sells a massive SUV. The Sequoia can cost over $70,000.
The low Toyota supply is not an aberration. It usually has that spot every month.
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