I continue to be baffled when I see dealers with what I would consider to be aged inventory. What is aged? What’s the cut off number? Some would say 45 days. Some would say 60 days. Some dealers are willing to accept 75 or even 90 days as an aged number.
The biggest problem I observe in this business is that people don’t want to be held accountable. They don’t want to take “the hit,” wholesale losses, at whatever they have determined to be an aged unit.
And then all of a sudden they start to expand their “aged zone” much like a struggling baseball player starts to expand their “strike zone.”
As a hitter expands their strike zone, they start to strike out more. That’s a great parallel to aging using cars. The further you are willing to extend the life cycle of the unit, the less money you’re making.
Never forget, taking a loss on a used car at the end of the aged period is not the goal. The goal is to find a retail buyer before you hit that number.
I believe that most of you know what I’m saying is true, but just in case you aren’t a believer I have a little experiment I’d like you to consider. It’s called 30/30.
I have a spreadsheet I want to send you. It’s an easy way to track used vehicles you sell within the first 30 days VS those you sell after 30 days. The odds are extremely good that the average gross on those you sell in the first 30 are going to be a lot better than those you sell after 30.
All you have to do is hit reply and put in the subject line 30/30. I must receive your request by Friday May 22 in order to include you in the email with the spreadsheet attachment.
I don’t want to see you expand your “aged zone.” I do want to see you expand your “thinking zone.” That’s all I’m gonna say, Tommy Gibbs