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You Can’t Control What You Can’t Track

Posted by Leigh Ann Merwin Posted on Nov 24 2015

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”.

  1.  Is the age and valuation of your used inventory reviewed at least monthly to determine potential problems?
  2. Are your wholesale losses manageable month after month?
  3. Are wholesale units being identified at the time of appraisal and handled promptly?
  4. Are all retail units being reconditioned at the time the unit is stocked in and are the reconditioning costs being managed?
  5. Is used inventory being purchased based on what sells in your market and are the day’s supply of inventory being monitored on an ongoing basis?


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.