Keeping track of inventory levels in your region can help dealers understand market trends.
Zooming out to take a look at your region as a whole can provide valuable insight on what is happening in the market. Once dealers understand what is happening in their market, they can make informed decisions regarding their inventory levels, pricing, and what cars to buy to meet demand.
Inventory levels, the number of used cars for sale in your region, is a key metric to keep track of because it shows the supply and demand in your area. When dealers see a low supply, their pricing strategies can change to meet demand. When dealers see a high supply, they can start to think about promotions to move cars and attract customers.
Current High and Low Inventory Supply
Dealers can dive deeper into inventory levels in their region by taking a look at the current high and low supply of specific makes & models. When dealers are looking to purchase cars for their lot, they should take note of high and low supply. If dealers notice a specific vehicle is trending lower than usual, their prices on lot can increase to meet demand. If a specific make & model is trending higher than usual, dealers may want to avoid purchasing that car for their lot because it will take longer to move.
