In today’s competitive automotive landscape, the success of a dealership hinges on one critical factor: inventory. It’s not just about having cars on the lot. It’s about having the right cars, at the right time, for the right customer.
According to CDK Global, the number one reason car shoppers visit a dealership isn’t brand loyalty or location. It’s because the vehicle they want is available and ready for a test drive.
To help dealerships navigate the complexities of used vehicle inventory, CDK Global developed a powerful framework: The 10 Commandments of Used Vehicle Inventory. These principles, drawn from extensive dealer feedback and market research, are designed to help dealerships optimize their inventory strategy, boost profitability and meet evolving customer demands.
Let’s dive into each commandment and explore how they can transform your dealership’s approach to used inventory management.
Predict What Customers Will Want in the Future
The first commandment is all about foresight. Consumer preferences shift rapidly — driven by trends, fuel prices, economic conditions and even weather. Successful dealerships use data-driven tools to anticipate these changes. By leveraging AI and market analytics, you can forecast demand and stock vehicles that align with future customer desires, not just current ones.
Acquire Vehicles That Will Sell Quickly
It’s not enough to know what customers want. You need to act on it. Fast-moving inventory is the lifeblood of a profitable dealership. From the moment a vehicle is appraised, every decision should be guided by real-time market data and predictive analytics. The goal? Acquire vehicles that not only match customer demand but also turn quickly to maximize ROI.
Price Vehicles to Meet Financial Goals
Pricing isn’t an art. It’s a science. With the right tools, dealerships can analyze local and national pricing trends to set competitive yet profitable prices. Dynamic pricing strategies, powered by AI, can ensure that your vehicles are always positioned to attract buyers while meeting your dealership’s financial objectives.
Align Inventory With Profitability Goals
Every vehicle on your lot should serve a purpose. While variety is important, each unit must contribute to your bottom line. That rare sports car in a unique color might draw attention, but if it sits unsold for months, it’ll cost you money. Use data to evaluate which vehicles align with your financial goals and make informed stocking decisions.
Maintain a Balanced Inventory Mix
Your lot should reflect the diversity of your customer base. That means you should offer a mix of sedans, SUVs, trucks and luxury models. Even if compact SUVs are trending, don’t overlook the niche buyers who might travel miles for a specific model. A well-balanced inventory ensures you’re ready to meet a wide range of customer needs.
Set Clear Financial Goals for Used Sales
You can’t hit a target you haven’t set. Establish clear financial goals — monthly, quarterly and annually — to give your team a road map for success. Define key performance indicators (KPIs) and use them to guide your inventory strategy, pricing decisions and sales targets.
Avoid Lost Sales Due to Inventory Gaps
One of the most costly mistakes a dealership can make is not having the right vehicle when a customer walks in. Every missed opportunity is a potential sale lost to a competitor. If you continuously analyze market demand and adjust your inventory accordingly, you can minimize these gaps and keep your lot aligned with customer expectations.
Know When to Wholesale or Trade
Not every vehicle is a perfect retail fit. Some units are better suited for wholesale or trade, especially if they don’t align with your customer base or are aging on the lot. Use data to identify these vehicles early and make strategic decisions about where they’ll generate the most value — whether that’s through a trade, auction or wholesale partner.
Ensure Accurate Merchandising
Merchandising is the bridge between your inventory and your customers. High-quality photos, detailed descriptions and accurate listings are essential. In fact, 88% of shoppers say that vehicle photos influenced their decision to start the buying process online. AI tools can enhance your merchandising efforts and ensure every vehicle is presented in the best possible light.
Don’t Delay Getting Vehicles Online
Speed matters. The longer it takes to list a vehicle, the longer it sits unsold. Delays in merchandising or pricing can cost you valuable time and money. With AI-powered tools, you can generate VIN-accurate descriptions and market-based pricing instantly, allowing you to list vehicles the moment they’re ready.
The Power Behind the Commandments: CDK’s Vehicle Inventory Suite
These commandments aren’t just theoretical. They’re the foundation of CDK Vehicle Inventory Suite, a cutting-edge solution designed to centralize vehicle data, enhance forecasting and streamline inventory management. By integrating AI and real-time analytics, the suite empowers dealerships to:
- Optimize vehicle pricing
- Improve acquisition strategies
- Reduce holding costs
- Accelerate vehicle turnover
It’s a comprehensive platform that connects every part of the dealership — from the showroom to the Back Office — enabling smarter, faster decisions.
Final Thoughts
The used vehicle market is evolving, and dealerships must evolve with it. By following the 10 Commandments of Used Vehicle Inventory and leveraging advanced tools like CDK’s Vehicle Inventory Suite, dealerships can not only survive—but thrive—in this dynamic environment.
Whether you’re a seasoned dealer or just starting to refine your inventory strategy, these principles offer a clear path to greater efficiency, profitability, and customer satisfaction.
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