ZeroSum Market First Report: May 2022 Automotive Inventory Data and Sales Forecasts
As new vehicle inventory remains constant, and prices for both new and used cars begin to level off, dealers are continuing to benefit from high levels of profit.

As new vehicle inventory remains constant, and prices for both new and used cars begin to level off, dealers are continuing to benefit from high levels of profit.
GRAND RAPIDS, Mich. – The ZeroSum Market First Report is the automotive industry’s first source to predict month-end vehicle movement, providing vital supply and demand trend data to automotive marketers and dealers. ZeroSum uses predictive modeling to accurately estimate new vehicle inventory, pricing trends, and market share.
This May, businesses are feeling the impact of lower consumer demand, factory shutdowns, and higher production costs. Even Carvana, one of America’s largest used car retailers, felt the impact as their stock prices plummeted 90% since November. This is largely due to preparing for much higher demand levels than needed. In China, COVID lockdowns have slowed production for many manufacturers, leading to continued supply pressure. With rising raw material costs, Toyota warned that prices could take 20% off full-year profits. Due to inflation rates and rising gas prices, OEMs like Hyundai and Volkswagenare beginning to ramp up production of EVs as customers shift their focus.
ZeroSum’s Take: What You Need to Know
As new vehicle inventory remains constant, and prices for both new and used cars begin to level off, dealers are continuing to benefit from high levels of profit. However, consumers have finally hit the limit on what they are willing to pay. For dealers, this is a critical tipping point because they will need to accelerate turn rates on both new and used inventory to maintain profits and earn more inventory to sell.
Here are your key takeaways:
This month, there are 1.95% fewer used vehicles on the ground than at the end of April while new vehicle inventory remains relatively consistent. On average, a used car now costs almost as much as a new car did a year ago.
Adjust your business model. In our last report, we talked about the stabilization of new car inventory levels being the new normal, and that remains true in May. Dealers will need to focus on used car marketing alongside new car marketing for business growth.
Keep an eye on stabilizing prices. Be prepared to adjust your marketing as prices level off and consumer demand wanes. To maintain profit, the market pricing will have to be more strategic to meet demand.
Be prepared for EV demand. Higher gas prices and long ordering waits are pushing consumers to purchase used electric vehicles at high prices.
To read the entire report and view supplemental charts, visit our website: https://www.zerosum.ai/blog/zerosum-market-first-report-2022-5
More Auto Finance

First-Quarter Sees Long Auto Loan Growth
Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.
Read More →
Mastering Credit Friction
In this video, Josh Krach explains how to turn credit friction into an advantage.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Auto Lenders, Consumers on a Tightrope
April borrowing data shows that more consumers are bending over backward to buy vehicles, though subprime lending cooled off for the month.
Read More →
Toyota Financial Services President Replaced
Scott Cooke has served in various roles with Toyota Financial Services for over 20 years, including president and CEO, which he retires from on June 30.
Read More →
Permission or Approval: When to Notify Finance Sources
Credit card down payments, multiple vehicle purchases and even straw purchases can be completed without committing bank fraud, as long as you tell the bank first.
Read More →
At-Risk Auto Borrowers Drive Looser Credit Access
Cox Automotive’s index shows the subprime segment, long loan terms, negative-equity borrowers and down payment amounts all grew in February despite ever-higher vehicle prices.
Read More →
Auto Loan Forecast Bucks Market Trend
Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.
Read More →
Auto Credit More Plentiful
Growing access shows greater lender appetite for risk as consumers take on heavier debt burden in an inflated market.
Read More →
Auto Loans Long as Stretch Limos
More consumers, faced with ever-rising car prices, are adapting by agreeing to longer loan terms despite the cost of added interest payments.
Read More →