Market Days Supply
A metric indicating how long it would take to sell all available vehicles of a specific type given current sales velocity.
Definition
Market Days Supply (MDS) is a critical inventory metric that measures the balance between supply and demand. It is calculated by dividing the total number of available vehicles of a specific year/make/model/trim in a market by the average daily sales rate of that vehicle over the last 45 days. A low MDS (e.g., <30 days) indicates high demand and scarcity, suggesting a higher price potential. A high MDS (e.g., >90 days) signals oversupply, often requiring aggressive pricing or advertising to move metal.
Related Terms
Turn Rate
A measure of how quickly specific vehicle segments sell relative to the rest of inventory.
Price to Market (P2M)
A comparison of a vehicle's price against the average price of similar vehicles in the local market.
Stocking Guide
A data-driven recommendation of which vehicles a dealer should acquire based on local market demand.
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