Days’ Supply - Used Vehicles - Units

Computations

Used Vehicles

This calculates the number of days for a dealer’s used car inventory to be completely sold, using the dealer’s current rate of retail sales.

This example can also be used to calculate the Days’ Supply of Used Trucks – Units.

Example:

	Year-to-date
Used car retail unit sales-YTD	550
Divided by:	/
Number of months	12
Equals: Unit retail sales-average month	46
Divided by:	/
Number of days	30
Unit sales per day equivalent	1.53
Number of used cars in inventory	80
Divided by:	/
Unit sales per day equivalent	1.53
Days’ Supply of Used Cars – Units	52

Days’ Supply - Used Vehicles - Dollars

(Single Month Basis)

Computations

Used Vehicles

This calculates the number of days for a dealer’s entire used car inventory (expressed in dollars) to be sold, using the dealer’s current rate of retail sales

This example can also be used to calculate the Days’ Supply of Used Trucks – Dollars.

Example:

	Monthly
Used Cars Retail Sales	$525,000
Minus: Used Cars Gross Profit	$51,000
Equals: Used Cars Cost of Sales	$ 474,000
Divided by:	/
Number of Days	30
Unit sales ($) per day equivalent	$ 15,800
Used cars in inventory ($) Account 240, Used Cars	$750,000
Divided by:	/
Unit sales ($) per day equivalent	$15,800
Days’ Supply of Used Cars – Dollars (Single Month Basis)	47