Car dealers should rotate their inventory regularly to ensure freshness and maintain customer interest. But how often should they rotate their inventory? We're going to explain the recommended timeframe to rotate your inventory and the benefits that come with it.
How Often Should I Rotate My Inventory?
Unlike grocery stores, you don't have to rotate your inventory within a week. The recommended frequency dealers should rotate their inventory is 45-60 days. This is known as a "turn time", which represents the timeframe in which dealerships must sell their vehicles to get the most of the vehicle’s value.
What Are the Benefits of Rotating My Inventory Frequently?
Here are 7 benefits that come with rotating your inventory every 45-60 days:
Increased Sales
Regularly refreshing your inventory can attract repeat customers who are looking for new options, which increases sales opportunities.
Higher Profit
Newer vehicles on the lot are more likely to sell at higher prices, as they haven't depreciated as much as vehicles that have been there longer. Keeping inventory fresh can help maintain higher profit margins.
Improved Cash Flow
Faster turnover frees up cash quickly. That means you can get the money in time to buy more inventory at your next scheduled auto auction sale day.
Inventory Management
Frequent inventory rotation can help ensure that your dealership has the right mix of vehicles to meet demand without overstocking.
Competitive Advantage
Regularly updated inventory can give dealerships an edge over competitors with slower turnover rates, attracting customers looking for the best selection and latest models.
Good Reputation
A dealership known for having the latest models and wide inventory can build a reputation for being up to date and seem more appealing to customers.
Better Customer Satisfaction
Offering a constantly updated selection of vehicles keeps customers engaged and more likely to find a vehicle that meets their needs, enhancing customer satisfaction.
Is It Time For Me to Rotate My Inventory?
Although the recommended turn time for dealers is 45-60 days, it all depends on your personal preference. If your current strategy is working, then stick with what works. However, if you’re newer to the automotive industry or you're a dealer looking for a new strategy, you can try the recommended turn time and see how it works out.
Whether you’re a new or experienced dealer looking to buy or sell inventory, you can click the button below to speak with our dealer registration specialist to get you registered with Big Valley Auto Auction.
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