Notifications & Messages

Jared Hamilton
From: Jared Hamilton
Hey - It’s time to join the thousands of other dealer professionals on DrivingSales. Create an account so you can get full access to the articles, discussions and people that are shaping the future of the automotive industry.
×
Travis Wise

Travis Wise Sales Manager

Exclusive Blog Posts

What People Are Looking For In An Auto Repair Shop

What People Are Looking For In An Auto Repair Shop

Those who have been involved in some sort of accident have the next step of finding an auto repair shop. These shops are not all created equal as some are …

One Price Selling – What Are You Waiting For?

One Price Selling – What Are You Waiting For?

Most Dealers are closer to a One Price Selling sales process than they may realize. If you’re an excellent pre-owned dealer you’re basically no…

What Is Your Chemistry With Women Buyers?

What Is Your Chemistry With Women Buyers?

Wow, its December. Last month of the year. Now is the perfect time to begin to reflect on the customer processes, engagement and strategies you have in pla…

Want to Advance in Business? Here are a Few Ways to Stay on Top of Your Game

Want to Advance in Business? Here are a Few Ways to Stay on Top of Your Game

If it’s time for you to take the next steps in your career, there are some tried-and-true methods that can ensure your success. All business professi…

BDC training for 2017

BDC training for 2017

  We have a service and sales bdc team for each of our stores. One is a Hyundai store and the other is a Chevrolet store. We have Three sales Bus…

I've been meaning to comment on this Ward's Article (regarding a seemingly systemic disregard for inventory aging concerns) for a while now, but I just haven't made it a priority. Now, with almost three months of reflection on my original reaction I wonder if that is the underlying dilemma for the dealer community - inventory aging just isn't a priority?

Of course, I have no hard cash or debt risk on the line with the timing of this post - so how could one of the most talked about metrics in the pre-owned vehicle marketplace avoid being a top priority? Or is age misunderstood, or is there some other reason that I'm unable to grasp?

I've spent the last 20 minutes Googling the topic and have found surprisingly little. I've spent the last 3 years discussing it with hundreds of dealer principles and UCMs, and while I've seen very little change in attitude during that time period, I have heard some interesting feedback. I'm very curious to read this community's comments on the topic, but I'll share the most common one I receive from managers.

When discussing an aging strategy with a manager (admittedly as it relates to our product) I usually hear some form of "that doesn't affect me because I write down my stuff" or "I adjust my cost basis across all my units so we're good". Now, I understand this principle just fine, in fact I've had to employ it handily to my stock portfolio the past few months, but isn't it missing the issue? According to Ward's research it isn't the depreciation we are really driving at (though no basis adjusting is going to fix a stock that is ultimately bound for zero), but instead it's the actual probability of retailing that specific unit irrespective of what other units you have cost packaged it with. BTW - is it just me, or isn't that the way CDOs started?

So the question I pose to the community is this, "Is it a failure of differentiating depreciation risk from probability of sale that keeps a unit on a lot for 100+ days, or is it just a gambler's mentality?"

-- Travis Howard, VP, Dealerslink, Inc.

 Unlock all of the community & features  Join Now