Inventory management: when to repurchase, when to liquidate, when to keep

A good inventory management is key for any used vehicle dealership (VO), but especially for independents. Having too much immobilized stock, not detecting a car without exit in time, or not taking advantage of a repurchase opportunity can seriously affect profitability.

In this article, we at Dealcar explain how to make better decisions with your inventory: when to repurchase, when to liquidate, and when to keep. We approach it with a mix of strategy and concrete action, easy to apply to your day-to-day.

Why is good inventory management key?

It directly impacts your cash flow

Each car sitting idle represents immobilized money, occupied space, and associated costs (insurance, maintenance, etc.). Knowing when to liquidate allows you to free up that capital.

Improves turnover

A well-managed inventory turns over faster. This allows you to sell more, adjust prices more freely, and improve your commercial image.

Avoids impulsive bad decisions

With clear data and criteria, you do not decide quickly. Act strategically, not just on intuition.

When to repurchase

1. Vehicles you have sold quickly in the past

If a model sold in less than 20-30 days, it may be worth bringing it back. Analyze:

• Average time in stock

• Margin obtained

• Interest generated (inquiries, calls)

2. Models with high demand in your area

Observe what your customers are looking for, both in the lot and online. Use portals or your CRM to detect local trends.

3. Units with high turnover at the national level

Tools like Dealcar allow you to identify models with good overall turnover, not just in your dealership.

4. When there is little competition

If you see that a model is scarce on the portals or among your nearby competitors, it is an opportunity.

When to keep

1. Vehicle in good condition, but slow to turn over

Some cars take longer to sell but sell with good margin. You can keep them if there is no financial urgency.

2. Models with seasonality

For example, family cars or SUVs before winter; convertibles before summer. If you are out of season, wait for the right moment.

3. Vehicles with high potential for refurbishment

If with a reasonable investment you can improve their presentation and increase their perceived value, it may be better to keep it and relaunch it.

4. If it generates traffic or inquiries

Even if it does not sell quickly, it may be attracting visits to the lot or website. That also has value.

When to liquidate

1. More than 90 days in stock without interest

If after three months it has not sold or generated inquiries, it is occupying valuable space.

2. Price above the market

If your car is clearly above similar models, you should adjust or liquidate.

3. Many similar cars on portals

Too much competition lowers market value. It may be better to exit before it falls even further.

4. Hidden problems or costly warranty

If the repair or maintenance is high, it may be more profitable to lower the price and sell as soon as possible.

5. Need to free up cash flow

In times of low liquidity, liquidating unattractive stock allows you to buy better and reinvest.

Decision table: repurchase / keep / liquidate

Good practices to improve stock management

• Use tools that show you KPIs: days in stock, margin per unit, visits, clicks, etc.

• Schedule weekly inventory reviews: decide what to highlight, keep, or reduce.

• Don’t get attached to stock: a car without exit is a cost, not an asset.

• Define thresholds: for example, "at 45 days, review price; at 75, prepare liquidation".

• Use Dealcar to see market prices, turnover, and decide with data, not intuition.

Conclusion

Inventory management is not just counting cars. It is deciding what to do with each unit to maximize sales, minimize risks, and keep your dealership healthy.

Knowing when to repurchase, keep, or liquidate gives you a competitive advantage. And with systems like Dealcar, you can have that information always at hand, make quick decisions based on real data.

Remember: a well-purchased car is half sold. And one that stays too long... is a cost that accumulates.

FAQ – Frequently asked questions

How long should it take to sell a used car?

Ideally between 30 and 60 days. More than 90 is already considered slow stock.

How often should I review the inventory?

Recommended: weekly for marketing decisions and monthly for strategic decisions.

Is it a good idea to repurchase cars I have already sold?

Yes, if they sold quickly, with good margin, and you still see demand.

When should I decide to liquidate?

When the car is not moving, competes with similar cheaper ones, or you need to free up capital.

Should I keep cars out of season?

Yes, if the model has seasonal demand and you can keep it without affecting overall turnover.