From the October issue of UCD
By Doug Turner
Getting quality inventory to the front line is essential—but it starts long before the recon process or the test drive. It begins with acquisition.
Inventory acquisition is the pipeline for your dealership. When you buy the right vehicles, everything else flows smoothly: more sales, fewer mechanical expenses, fewer comebacks, and stronger collections. It’s all tied to disciplined purchasing—the right make, the right model mix, and mechanically sound vehicles.
If you’re not buying right, inefficiencies creep into the process. Vehicles get delayed reaching the front line, sales slowdown, inventory ages. and costs rise. The outcome is determined by how methodical and consistent you are in the buying process. That means leveraging every available tool—OBD2 scans, condition reports, and thorough pre-auction or online research.
Build a Buy and No-Buy List
Every dealership should create a buy/no-buy list, based on store-specific data. For multi-location groups, remember that different markets demand different vehicles. On these lists, get specific—note per-model details to watch out for, like common problem areas or features that need inspection.
These lists are living documents. Update them quarterly using trends from:
- Pre-sale recon expenses
- Post-sale warranty claims
- Service contract issues
- Customers pay expenses
- Retail sale performance
A vehicle that sells quickly but drives up service costs isn’t just an expense—it’s a threat to your reputation.
Involve the Whole Team
The buy/no-buy list shouldn’t be created in isolation. Bring everyone to the table—buyers, service, sales, and collections—for a quarterly review. This cross-functional discussion ensures alignment. For example, a buyer may love a certain model, while the service manager flags recurring mechanical problems. These conversations refine the list and keep the team accountable.
Discipline Over Volume
Whether you’re buying one car or 100, the approach must remain logical and disciplined. Filling the lot just for the sake of it leads to costly outcomes. Quantity never outweighs quality in your acquisition strategy.
Leverage Trusted Sources
I’m also a strong believer in sourcing from proven partners. If an auction or vendor consistently delivers quality vehicles, lean into that relationship. Over time, you’ll identify opportunities by mileage, year, or model that align with your dealership’s needs and strengthen your buying strategy.
Doug Turner, Senior Director of Remarketing at America’s Car-Mart, will be leading the deep-dive workshop “The Heart of the Matter – Inventory Management” at the NIADA BHPH Dealer Forum.
Acquisition is the true starting point of a vehicle’s journey. Buy responsibly, buy intelligently, and the rest of your operation—recon, sales, and collections will be set up for success.
