A Time to Rethink How You Manage Inventory Age

Three market conditions have converged to cause dealers and used vehicle managers to return to inventory age management policies that call for immediate wholesaling of vehicles that reach 45 or 60...

Missing the Import of Current Retail Automotive Conditions

It seems as if nearly everyone in the industry, especially dealers, wants answers to two important questions: When will the current chip shortage, which is affecting new vehicle production levels...

Early Signs of a Market Moving to More “Normal” Dynamics

I believe we’re about to reach a similar moment in the used vehicle market, particularly for dealers who have been stocking their inventories to achieve a 60- or even 90-days supply of vehicles.

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NADA Day 3: A Final View from Las Vegas

As I was leaving Las Vegas yesterday, it occurred to me that I hadn’t shared much on new vehicle market conditions and what they may mean for dealers. Of course, everyone knows the industry will...

A Call For Balance, Collaboration In New and Used Vehicles

I recently did an interview with CBT News where host Jim Fitzpatrick and I discussed three things dealers should do to better manage their new vehicle inventories. We talked about keeping a...

3 Best Practices To Ease The Current New Car Pickle

Franchised dealers are in a bit of pickle these days. As Automotive News reported this week, new vehicle inventories have risen to their highest level since July 2017. The estimated tally of 4.2...

Understanding The New Math of Today’s Used Car Business

There was a time not long ago when selling used vehicles and making money were synonymous. Those were the days when you could take a used vehicle into inventory, price it to achieve your gross...

Independent Dealer Realizes His Car Business Dream

It’s been a bit of a dream come true for independent dealer Dan Oakes in Kansas City. In 2010, Oakes acted on his curiosity and interest in the car business. His job as an energy trader provided...

3 Keys To More Efficient New Vehicle Inventory Management

Perhaps it’s telling that, as of today, no one has commented on the Automotive News piece that discusses how dealers will face a “tough slog” in the months ahead in new cars. The reason, I...

Margin Compression Takes A Bite—How Will You Bite Back?

For many dealers, margin compression in used vehicles has been a bit like a leaky water line. The truth is, the line’s been slowly dripping for years. But no one really noticed it until now—after...

Part 2: 4 Ways To Mitigate Margin Compression

If today’s used vehicle market was a house, it’d have a serious structural problem. Let’s say the house had eight-foot ceilings 10 years ago. Today, the ceiling height is probably closer to seven...

Part One: A Troubling Tradition-Minded Trend To Avoid

In the past few weeks, I’ve noticed a troubling trend in dealers’ used vehicle inventories. The inventory turn rates at these dealers is slowing down. Last year, the dealers consistently...

Four Key Resolutions To Improve Used Vehicle Performance

A new year brings much discussion about goals, resolutions and to-dos. That’s certainly the case with a lot of dealers, judging from conversations and e-mails the past few weeks. Collectively, the...

4 Used Vehicle Fundamentals To Help You Stay Strong As Fall Unfolds

There appears to be good news and bad news on the horizon in used vehicles. The good news first: The healthy pace of used vehicle sales, particularly in near-new segments with good-credit buyers,...