Spend the right amount of budget on the right cars
Understanding your inventory’s risk and waste gives dealers financial, operational, and marketing control.
Watch general manager, Lance Schafer, and senior director of product management, Alex Karpyza, discuss the difference between risk and waste on dealership lots.
FROM COX AUTOMOTIVE: New-vehicle inventory rises to highest level in two years
Inventory supplies were up 70% year-over-year at the end of March, with up to 1.89 million units for sale in the marketplace. The industry ended the month with a 56 days’ supply of new inventory, but stocking levels vary by OEM. Stellantis brands are currently in the lead with 100+ days’ supplies.
FROM CBT NEWS: Wholesale used vehicle prices changing course in April
Wholesale prices were down 2.7% at April’s half-way point. This decrease could be a natural response to overly-inflated preowned vehicle values, or it could be the result of an underwhelming tax season, with government refunds down 9% year-over-year.
FROM CAR AND DRIVER: Average new-car price actually drops, but it’s still over $48,000
New-vehicle transaction prices have seen a small but significant decrease for the first time in nearly two years. At the same time, incentive discounts have climbed to 3.2% of the average transaction price. If these two trends persist, it could signify a potential decline in dealership profit per vehicle.
FROM CNBC: The $25,000 electric vehicle is coming, with big implications for the auto market and car buyers
While the average new vehicle still costs close to $50,000, EV manufacturers like Tesla and GM are starting to focus on the $30,000 price point. Not only would this make electric options more accessible to the public, but it might make them more appealing compared to pricey, traditional alternatives.
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Lotlinx empowers automobile dealers with data and technology to give the best possible market advantage on every vehicle transaction. Lotlinx offers a suite of features such as real-time market analysis, inventory management, and precision targeted vehicle advertising. Dealers leverage the platform to identify potential inventory risks and execute VIN-specific strategies enabling them to move inventory faster and more efficiently.
To start leveraging Lotlinx technology at your dealership, request a free, individualized Inventory Risk Analysis.