Inventory management in today’s used car market is a high-stakes challenge for dealership groups. The difference between profit and loss often hinges on how quickly—and strategically—you move vehicles across rooftops. In a recent Car Dealership Guy Industry Spotlight podcast, host Sam D’Arc sat down with Patrick Janes, vAuto’s associate vice president of inventory solutions, and Trent Waybright, vice president of used vehicle operations at Kelley Automotive Group, to explore how centralized, data-driven inventory management is reshaping the way dealers make decisions.
While many of today’s top dealers are still relying on a mix of gut instinct and rigid aging policies, there’s a growing shift. In fact, some of today’s top operators are leveraging analytics and AI-driven technology to place vehicles where they have the best chance at optimal grosses, reducing their days to sell, and unlocking new levels of profitability. As Sam D’Arc puts it, “That decision about where to put the vehicles is based on analytics, not on gut.” Their conversation, which you can listen to in full here, reveals the results that Kelley Automotive Group found when they enlisted vAuto as part of their centralized inventory management process. vAuto’s insights turned underperforming investments into retail winners and demonstrated the power of moving from intuition to actionable data.
From Old-School to New-School: Inventory Management
As Trent Waybright, vice president of used vehicle operations at Kelley Automotive Group explains, used car managers have relied on intuition, experience, and rigid aging policies to guide inventory decisions for years. The prevailing wisdom was simple: keep a close eye on aging units, set hard turn policies, and hope that gut instinct would lead to profitable outcomes. “I was the first person to log in to vAuto back in 2007 in my company, and so my train of thought has always been if you take good care of the inventory from day one…the aging will take care of itself.”
But this approach has its limitations. Manual spreadsheets, inconsistent processes, and a reliance on hunches can lead to missed opportunities, slow turns, and shrinking margins. Even with a small percentage of aged vehicles—the challenge remains: how do you ensure every unit is in the right place, at the right time, for the right money?
Traditional policies may have worked in the past, but today’s market demands a smarter, more agile approach. The next evolution is clear: moving from gut instinct to data-driven decisions.
“You’re a rockstar now,” D’Arc observed. “This is what everybody wants. They want a tool that works really well, that you say ‘it’s gonna happen,’ and then it does. That gives you a ton of credibility as an executive leader.”
The Shift: Centralized, Data-Driven Decisions
As market pressures and shrinking margins challenge traditional approaches, leading dealer groups are embracing a new way forward: centralized, data-driven inventory management. For Kelley Automotive Group, this shift meant moving away from relying solely on experience and intuition and instead harnessing the power of analytics to optimize every decision.
With vAuto’s centralized platform, the team can now identify which vehicles have the highest probability of retail success at each rooftop before aging becomes an issue. As Patrick Janes explained in the podcast, “We saw about 9,000 units being transferred intergroup store to store…this activity is popular amongst our client base, and we wanted to make better decisions about moving those cars.”
The results speak for themselves: Kelley Automotive Group reduced days-to-sell for transfer vehicles by 20 days and generated an average $5,500 in front/back gross when those vehicles retail. Instead of waiting for inventory to age out, the team now proactively moves vehicles to the locations where they’ll perform best—unlocking new levels of efficiency and profitability.
Waybright, who led this initiative for his dealer group, now owns the accolades. “You’re a rockstar now,” D’Arc observed. “This is what everybody wants. They want a tool that works really well, that you say ‘it’s gonna happen,’ and then it does. That gives you a ton of credibility as an executive leader.”
Six Actionable Insights and Practical Steps for Dealers
Centralized, data-driven inventory management isn’t just a trend—it’s a proven strategy for you can use today for your own dealership group to maximize profit and efficiency. Here are six practical steps and insights you can apply right now:
- Empower Centralized Decision-Making: Assign a single leader or team to oversee group inventory. This enables faster, smarter decisions about where each vehicle will perform best, reducing reliance on gut instinct and inconsistent policies.
- Leverage Analytics Over Hunches: Use live market data and predictive analytics to guide every inventory move. As discussed in the podcast, “Decisions about where to put vehicles is based on analytics, not on gut.”
- Move Vehicles Earlier in Their Lifecycle: Don’t wait for units to age out. Proactively transfer vehicles to rooftops where demand and retail potential are highest. Groups that act early see reduced days to sell and avoid costly wholesale losses.
- Formalize Transfer Policies and Timelines: Establish clear, consistent processes for when and how vehicles are transferred between stores. This ensures every unit gets its best shot at retail success and helps teams stay aligned.
- Track Results and Iterate: Monitor key metrics like days to sell, gross profit, and wholesale loss. Use these insights to refine your strategy and continuously improve performance.
- Collaborate and Learn: Engage with peer groups and industry networks to share best practices and stay ahead of market changes. Continuous learning fuels innovation and keeps your team competitive.
By implementing these steps, your dealership can unlock new levels of efficiency, profitability, and confidence in your own inventory management.
The Bottom Line
Centralized, data-driven inventory management is more than just a new way of thinking—it’s a proven approach for dealership groups that want to maximize profit, reduce days to sell, and stay ahead in a competitive market. By empowering centralized decision-making, leveraging analytics, and formalizing transfer policies, dealers can unlock new levels of efficiency and confidence in every inventory move.
Ready to take your inventory strategy to the next level?
Explore more strategies, best practices, and tools for centralized inventory management at vAuto’s Learning Center.
