What it does
Inventory management and pricing tools compare each vehicle to similar units in the local market. They show days supply, price rank, turn rate and expected gross, and suggest price changes as a unit ages. Most also support appraisals and stocking decisions, so the used car manager buys the right cars at the right price.
Used vehicle margins are thin and holding costs add up daily. These tools help managers decide when to move price, when to wholesale and which units to chase at auction or from customers. Some also cover new inventory, helping with allocation and aged new units.
Data coverage and accuracy separate vendors. Ask how the market is defined, which listings are counted and how quickly sold units drop out. Pricing should reflect the total price shoppers see, especially where state rules require advertised prices to include fees.
Who in the store uses it
- Used car managers: price units, appraise trades and decide what to stock.
- Inventory managers and buyers: source vehicles and track aging.
- General manager and dealer principal: review turn, gross and aged units.
- New car managers: watch supply and aged new units.
- Marketing managers: align pricing with ads and the website.
What it connects to
- DMS (inventory, costs and sales)
- Valuation data and vehicle history
- Marketplaces and the website (price syndication)
- Auctions and acquisition tools
- Reconditioning software (cost and time to frontline)
- Inventory ads
- Window sticker tools
Inventory management and pricing products in the index
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What to ask vendors
- How do you define our local market, and can we adjust it?
- How quickly do sold units drop out of market comparisons?
- How do recon costs and holding costs factor into recommendations?
- Do price changes push to our website and marketplaces automatically?
- Does the tool support new inventory as well as used?
- Can we set different strategies by store or vehicle segment?
- What reporting shows the result of following recommendations?
- What are the contract terms and per-rooftop pricing?
Signs it's time to switch
- Managers price from gut feel because they don't trust the market data.
- Aged units pile up before anyone notices.
- Price changes don't reach the website and marketplaces for days.
- Appraisals miss the market and units end up wholesaled at a loss.
- Group leadership can't compare stores on the same numbers.
Related categories
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