How Dealership Inventory Management Tools Assist in Uncertain Markets

Inventory is an ever-evolving puzzle. The industry could be one chip shortage away from a drop in new inventory reaching your store. Aggressive competition for used cars could flare up from national online retailers while the local competitors likely aren’t sleeping on acquisition either. 

We’ve noted in previous stories how dealers are getting increasingly creative in sourcing inventory, sometimes even turning to customers' driveways. Another strategy we highlighted was mining dealer service lanes. While Service Advisors have a wide range of skills, stepping into the role of used inventory buyer may be a relatively new responsibility for many of them. CDK can ease the transition with tools to equip them to identify and acquire used vehicles at the right price. 

Empowering Service Advisors to source the right inventory is only part of the challenge. Effectively managing that inventory, through pricing, trade-in values, marketing and other factors is also critical for maximizing profits and optimizing turn rates. 

Used Cars Don't Sell Themselves: The Role of Pricing

Despite strong demand, used vehicles don't sell themselves. As interest in different vehicle segments shifts — sometimes quickly — based on seasonal and local market trends, acquisition and retail pricing remain critical, especially with fewer vehicles returning on leases. At the end of October, the industry average days-to-turn was roughly 37 days.

Veteran buyers may have a good feel for acquisition and retail pricing, but newer buyers may still be developing their intuition. This is where inventory management software can help. 

How Inventory Management Solutions Change the Game

Inventory management software can help dealership Sales teams and car buyers alike. In today's market, tools that offer localized and seasonal demand forecasting, inventory optimization, accurate market analysis, and streamlined vehicle acquisition processes help dealers strike the balance between inventory volume, turnover and margins based on each dealership’s particular business needs. These insights allow new and used vehicle Sales teams to sell optimally priced inventory.

CDK Vehicle Inventory Suite Is a Competitive Advantage

CDK inventory solutions not only support optimal pricing strategies to balance potential profit with turnover but they can also help adjust pricing based on local market conditions and demand. Furthermore, managers can see their current inventory mix alongside predicted pricing, margins and turnover rates, making it easier to plan future acquisitions and stay ahead of demand trends. 

While no one can predict how long the current tariff turmoil will continue, it could be some time before the used supply begins to meet demand as lease return volumes remain low. 

CDK Vehicle Inventory Suite can: 

• Help dealers save some of the time and money they've allocated to parsing through listings by quickly identifying the best inventory acquisition targets
• Estimate pricing based on current and local conditions as well as days-to-turn
• Identify demand shifts based on recent sales

Dealership Success Starts With Smarter Inventory Management Tools

In today’s competitive market, success in new and used vehicle inventory isn’t just about sourcing cars, it’s about doing so strategically and managing them with precision. Dealers who leverage advanced inventory tools gain the insights needed to anticipate demand, price accurately and turn vehicles faster, while protecting margins.