Welcome to this week’s episode of Weekly Used Cars, the original CBT News show dedicated to bringing auto dealers best practices and tips for the used car department, in-depth dealer interviews, practical dealership strategies and supplier analysis. Today, host Jasen Rice, founder of lotpopask the question-is your used car inventory performing like an out of shape athlete?
Over the past two years, used car inventory has performed very well with record gross profits and consistent volume, Rice says. But it also means that the used car department has probably picked up some bad habits. However, it seems the used market is slowing down and these bad habits could have lasting effects on the dealership if not handled properly.
Now is the time to get back to the basics of used car inventory management, Rice adds, and it might take a while to get back into full swing. It can even take three to six months to properly address aging issues in your inventory. Then it might take another three to six months to refine your processes. If a used car dealership or inventory manager decides to wait to get their department back in shape, they will start to feel the pain. The department is already two months behind the curve by then, Rice says.
Olympic athletes do not decide to get in shape a year before the competition. They do it consistently year after year. Thus, auto dealers who remain disciplined will win out over dealers who are complacent in the profitable market. If you want to start shaping your used car management now, Rice advises you to ask yourself the following questions:
- How fast do you get in-service and out-of-service cars with photos and descriptions?
- Is your virtual lot up to date? (See the Used Cars Weekly episode on virtual rides here)
- Does your current inventory match your sell rate?
- who age buckets have problems?
- Are you following your leads?
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