Welcome to this week’s episode of Used Cars Weekly, the original CBT News show dedicated to bringing car dealers best practices and tips for the used car department, in-depth dealer interviews, hands-on dealership strategies, as well as vendor analysis. Today, host Jasen Rice discusses the increase in inventory.
Many car dealers experienced a slow down in January which is traditional for the season. However, going into February and March, car dealers are in limbo wondering if they should hold tight or move aggressively. Car dealers certainly don’t want to be shorthanded with inventory come the Summer and Fall months.
New car listings on Autotrader and Cars.com are up roughly 15% over the last two quarters. Used car listings are up as well, by 11%. Availability is out there, says Rice. He cautions car dealers, who wish for more inventory, to be careful. Two things car dealers should prepare for:
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- As inventory increases, you’ll have to be more disciplined with used car management. Pay attention to your aging buckets and bleed through over the next 30 – 45 days.
- What if demand keeps increasing alongside inventory and exceeds the availability? Then precision used car management will be crucial to maximize gross.
Figure out how your lot is moving regardless of outside factors. Watch how your inventory is flowing. Take control of what you can. In terms of shopper activity, watch your leads and make sure to do follow-ups.
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