In an exclusive interview on Driving Solutions, we sit down with Len Short, Chairman of LotLinx, to explore his vital perspective on the shifting landscape of automotive retail. As dealerships prepare for NADA 2025, Short addresses pressing concerns about inventory management, profitability, and how cutting-edge AI tools can transform dealer operations.
As 2025 begins, dealerships face a tight and competitive market, with inventory carryover rates rising sharply. According to Short, he highlights that average new car carryover rates have climbed from 45% last quarter to 56%, which could pose major profitability risks. “When you sell within 45 days, it’s a great business. Beyond that, it gets complicated,” he said. Used cars face even tighter timelines, with profitability diminishing drastically after 30 days.
Short emphasized the crucial role of leveraging AI to tackle these challenges. LotLinx’s inventory data platform integrates proprietary dealer data with external market data to predict and proactively address aging inventory. For instance, their AI system alerts dealers before markdown cycles start, potentially saving them thousands of dollars.
Another issue Short pointed out is lead mismanagement. He noted that 80% of customers leave dealerships in cars different from their original interest, yet dealers often mark leads as dead after a specific unit sells. “Agentic AI identifies live leads and matches them to alternative inventory,” he explained.
In practical terms, LotLinx helps streamline pricing strategies and inventory movement. Their tools detect missteps like markdowns on cars with active leads and ensure that no potential sale slips through the cracks. Short emphasized, “This isn’t about doing anything a dealer wouldn’t do themselves—it’s about doing it relentlessly and efficiently.”
Short’s message is clear: the future belongs to dealerships embracing data and AI to optimize operations. With actionable insights and automation, dealers can thrive in an increasingly challenging market.
“Once inventory crosses the 45-day mark, the average days-to-sell jumps from 12 to 98 days. It’s a drag on profitability, with 95% of markdowns tied to aged inventory.” - Len Short.
