Methodology
Pressure Index
OAV's proprietary inventory-pressure indicator for U.S. public auto retailers. A directional signal — not a forecast, not a margin metric.
Market snapshot · May 23, 2026
What Pressure Index measures
Pressure Index combines three composite signals into a single directional reading at brand × monthly granularity. The signal surfaces markets where dealer inventory is facing rising or easing pricing pressure relative to baseline. It is computed nightly across publicly traded U.S. auto retail groups and is anchored in OAV's patented vehicle market standardization technology (U.S. Patent No. 12,236,477).
Pressure Index is a directional indicator, not a forecast. It does not predict future prices, does not estimate dealer margin or gross profit per unit, and does not project sales volumes. Treat the signal as one input among many in a broader analytical framework.
The three composite signals
- Deal-mix shift
- The changing balance of below-market, fairly-priced, and above-market listings within a cohort over time. Sourced from OAV's price-to-market verdict layer applied to current listings. A meaningful shift toward below-market signals rising pressure on the cohort to compete on price.
- Days-on-lot drift
- Directional movement in median days-on-lot relative to the cohort's baseline distribution. Lengthening DOL signals softer demand absorption; shortening DOL signals tighter clearance. The drift component captures directional change rather than absolute level.
- Price-to-market position
- The cohort's distribution of pricing position relative to comparable retail listings, derived from OAV's patented price-to-market analysis. Tracks where the cohort sits in the broader retail pricing range — at parity with peers, above, or below.
The three signals are blended into a single composite reading. Specific weights, thresholds, and the blending function are proprietary and not disclosed.
What Pressure Index is not
Three claims Pressure Index does not make:
- Not a forecast. Pressure Index reads observable market behavior; it does not project future prices, sales volumes, or margin trajectories.
- Not a margin compression metric. The signal does not measure dealer gross profit per unit (GPU) or estimate margin. Margin involves dealer-side cost data that OAV does not ingest. Pressure Index measures pricing pressure observable in retail listings, which is correlated with — but not identical to — margin dynamics.
- Not a per-rooftop signal. Pressure Index is cohort-level (brand × month). It is not designed for individual-rooftop or non-public retailer analysis. Per-rooftop inventory and demand intelligence is delivered through a separate OAV product surface.
Coverage and refresh cadence
Phase 1 Pressure Index coverage spans 10 publicly traded U.S. auto retail groups — pure-play used-vehicle retailers and franchised dealer groups — at brand × monthly granularity. Pressure Index is computed nightly from the daily inventory snapshot and refreshed transaction-level data. The signal carries a 14-day time-lag relative to the current calendar.
The 14-day lag is intentional and minimum. It is the window required to confidently observe sales-velocity behavior in U.S. used-vehicle retail. Surfaces displaying Pressure Index include a snapshot date so readers can verify freshness directly.
Limitations and caveats
- Time-lag. The 14-day lag means current-week pressure is not visible. Pressure Index is a tracking indicator, not a leading one.
- Cohort granularity. Designed for brand-level cohort comparison across publicly traded groups. Not designed for individual-rooftop or non-public retailer analysis.
- Cyclical context. Pressure Index does not separate cyclical effects (seasonal demand, inventory float) from structural shifts (model lifecycle, segment realignment). Interpretation requires market context.
- Composite reading. The signal aggregates three components and does not isolate which is driving a given reading without additional analysis. Two cohorts at the same Pressure Index level may be there for different reasons.
Where Pressure Index fits in the OAV analytical stack
Pressure Index sits at the macro-level cohort altitude. The OAV analytical stack reads at three altitudes:
- Per-listing: Price-to-Market
- OAV's patented per-listing pricing verdict (Great Deal / Fair Price / Overpriced), anchored in U.S. Patent No. 12,236,477. Surfaces on every listing card and VIN page.
- Per-listing trust signal: Demand-Verified Deals™
- Strict intersection of below-market pricing AND recent sell-through evidence from comparable vehicles. The trust-signal layer above Price-to-Market.
- Cohort-level: Pressure Index
- This page. Brand × monthly directional indicator combining deal-mix shift, days-on-lot drift, and price-to-market position.
The three signals operate independently. A vehicle can be Demand-Verified within a cohort whose Pressure Index is rising; a cohort with elevated Pressure Index can still contain Great Deal listings.
Frequently asked questions
- What is Pressure Index?
- Pressure Index is OAV's proprietary inventory-pressure indicator. It combines three composite signals — deal-mix shift, days-on-lot drift, and price-to-market position changes — into a single directional reading at brand × monthly granularity. Pressure Index surfaces markets where dealer inventory is facing more or less pricing pressure relative to baseline. It is computed across publicly traded U.S. auto retail groups and is anchored in OAV's patented vehicle market standardization technology (U.S. Patent No. 12,236,477).
- Is Pressure Index a forecast or a margin compression metric?
- No. Pressure Index is a directional indicator, not a forecast and not a measurement of dealer margin or gross profit per unit (GPU). The signal indicates whether inventory in a brand's footprint is facing rising or easing pricing pressure based on observable market behavior — it does not predict future prices, does not estimate dealer profit, and does not project sales volumes. Treat Pressure Index as one input among many in a broader analytical framework.
- What are the three composite signals?
- Pressure Index combines: (1) deal-mix shift — the changing balance of below-market, fairly-priced, and above-market listings within a cohort over time, sourced from OAV's price-to-market verdict layer; (2) days-on-lot drift — directional movement in median DOL relative to the baseline distribution for the cohort; (3) price-to-market position — the cohort's distribution of pricing position relative to comparable retail listings. The three signals are blended into a single composite. Specific weights and thresholds are proprietary and not disclosed.
- Which dealer groups does Pressure Index cover?
- Phase 1 coverage spans 10 publicly traded U.S. auto retail groups — pure-play used-vehicle retailers and franchised dealer groups — at brand × monthly granularity. Coverage is tracked nightly and rolls forward as new transaction data lands. Specific group identities are surfaced on the gated institutional research surface at research.oav.io for approved viewers.
- How often is Pressure Index data refreshed?
- Pressure Index is computed nightly from the daily inventory snapshot and refreshed transaction-level data. The signal carries a 14-day time-lag relative to current calendar — this is intentional. The lag is the minimum window required to confidently observe a sales-velocity signal in U.S. used-vehicle retail data. Each surface that displays Pressure Index includes a snapshot date so readers can verify freshness directly.
- What are Pressure Index's known limitations?
- Pressure Index is a Phase 1 indicator. Limitations include: (1) the 14-day time-lag means current-week pressure is not visible; (2) the indicator is designed for cohort-level comparison across publicly traded groups, not for individual dealer rooftops or non-public retailers; (3) Pressure Index does not separate cyclical effects from structural shifts — interpretation requires market context; (4) the composite signal aggregates three components and does not isolate which is driving a given reading without additional analysis.
- How does Pressure Index relate to Demand-Verified Deals™ and Price-to-Market?
- Pressure Index is the macro-level cohort indicator. Price-to-Market is OAV's per-listing pricing verdict (Great Deal / Fair Price / Overpriced) anchored in patented vehicle market standardization technology (U.S. Patent No. 12,236,477). Demand-Verified Deals™ is the per-listing trust signal that combines below-market pricing with sell-through evidence. The three sit at different analytical altitudes: Pressure Index reads the market's pressure; Demand-Verified Deals™ surfaces individual listings at the intersection of price and demand; Price-to-Market grades each listing's pricing position. Together they form the OAV analytical stack.
Powered by OAV's patented vehicle market standardization technology (U.S. Patent No. 12,236,477) and U.S. Trademark Registration No. 6,365,190. Pressure Index data refreshed nightly with 14-day minimum time-lag.