By Les Abrams
If your used-car manager is stocking the lot with seat-of-the-pants decisions, he is missing the boat. It’s long past time to drop the old ways of building inventory. The digital revolution has changed how the game is played.
There’s a wealth of data available to dealers to make sound stocking decisions.
What are the high-demand, low-supply vehicles in your market? That information is available from any number of vendors. We recommend that dealers investigate the solutions that best fit their dealerships. All the digital solutions have the ability to give dealers feedback as to which vehicles they should stock and which vehicles probably aren’t going to work on their lot.
One of the most critical pieces of information is the market days’ supply of a vehicle. What is the supply and demand of that particular vehicle within a specified radius of your dealership? A dealer has to know beyond his four walls what’s going on in the marketplace.
There are tools to assist dealers in identifying what’s in-demand in their market. They can pull analytics that tell them which cars have the most and the least days’ supply in their market, and what’s the average gross. They can stock what their customers want.
Here are questions to ask your used-car manager about every car in stock:
- What is the days’ supply in our market?
- What is the car selling for at auction?
- What is it selling for at retail?
- How does our price compare to others in the market?
The data is available — and data needs to be the centerpiece of every stocking decision.
Instructor Les Abrams teaches Variable Operations I in week 4 of 6 in the NADA Academy program. Variable Ops I encompasses digital marketing, inventory control, showroom traffic procedures, and new- and used-car sales. Reach Abrams at [email protected]. Visit to download the schedule and applications for all programs.