The first question, do you have control of your used vehicle inventory or is it controlling you? This is an age old problem for dealerships whether large or small. Let’s take a step back to the basics of inventory management with a few questions to see if you are in control of your used vehicle inventory. Always remember, “you can’t control what you can’t track”.
Managing your used vehicle inventory effectively creates positive cash flow and is crucial to the success of the dealership. If your answer to any of the five questions was no, this will create negative cash flow which effects the dealership as a whole especially if cash is being “held hostage” by aged units that do not qualify for floorplan due to age or value. Take a step back and review your policies and procedures in place for your used vehicle inventory to ensure you are not being controlled but are in control.