Turn Rate (Inventory Velocity)

Category: business

A KPI measuring how long a specific vehicle model sits on a dealership lot before being sold.

A high turn rate (e.g., 15 days) indicates a "hot" model that generates rapid cash flow. A low turn rate (e.g., 90+ days) signals a stagnant model that consumes floor plan financing interest, eventually forcing the dealer to lower prices to move the metal.

Common Examples

• We’re seeing a ninety-day turn rate on the performance coupe, prompting a tactical price adjustment to clear out the remaining inventory shelf space.
• Automotive planners monitor turn rate data across every region to dynamically shift production capacity toward the models moving the fastest.