When consumer confidence is low and interest rates are high, buyers tend to sit on their hands – and that can leave your dealership floor looking a little too full. Typically, this is when you would look at your marketing budget, look at areas you can scale back, and then hope that you make it through the month. But in truth, a slow market absolutely does not have to stall your momentum.
With a sharper stock strategy, you can reduce holding costs, free up capital, and keep your pipeline moving… even when foot traffic is light.
Let’s zone in on the sharper stock strategy that will unlock these benefits, even when buyers are holding back.
Focus On What Moves
Start by analysing your recent sales data to which vehicles are still moving despite the slowdown and what price brackets are drawing the most attention online. These insights will help you effectively trim your stock list to prioritise fast sellers, popular fuel types, and the body styles buyers are browsing most.
As hard as this might be, try not to let loyalty to a particular brand or margin cloud your judgment – go where the market is.
Balance Your Mix With CPO Stock
Certified pre-owned (CPO) vehicles give cautious buyers the peace of mind that they are looking for, especially when budgets are tight. Essentially, while certified pre-owned vehicles cost more than their non-certified counterparts, they cost less than new cars, come with warranties, and still offer the backing of a manufacturer-approved inspection. You can understand their appeal and why they fly off the floor.
The choice to include more CPO options in your mix could shorten stock turn times and appeal to fence-sitters who want value without the risk.
Cut Down On Dead Weight
If a car has been sitting for more than 60 days, you may want to take a moment to re-evaluate its space on the floor. Mark it down, move it to auction, or bundle it with a sweetener, like a service plan to move it off the floor. Hanging on to stale stock eats up space and drains capital that could be used for something with real turnover potential.
Lean On Supplier Data And Alerts
Some dealer platforms and wholesalers offer predictive tools to help buyers make more strategic purchasing choices. These insights are based on broader market trends, so you’re not relying only on your own performance. Don’t skimp on the advances of technology – look out for tools that offer stock alerts, regional demand data, and average pricing trends.
Tweak, Don’t Panic
Stocking smarter isn’t about gutting your inventory. It’s about adapting your stock to fit real-time demand, which is why you need to pay close attention to what’s moving weekly, keep your pricing competitive, and stay in touch with what your buyers are searching for. Smart dealers don’t freeze in a slow market… they flex.
A Positive Light Shone Directly On Your Brand
If you are part of the AA Dealer Network or another reputable group, offering certified stock will helps you make the most of that affiliation. Buyers expect high standards from an AA-backed dealership – and certification delivers on that promise.
Notably, it also helps differentiate you from independent lots or private sellers who can’t offer the same assurance.