A Dealer Guide to Used-Vehicle Inventory

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SL12_UVInventory_150wUsed cars are more profitable than new cars for dealers. By studying a number of metrics and using the information, you can improve your used-vehicle department's performance, profits, and competitiveness. Overaged units reduce profits and tie up inventory dollars. So turn time is a critical metric; 30 days is a reasonable turn time for used vehicles. And 12 turns per year is the NADA guide for used vehicles. Forms are provided in the guide for calculating your turn rate, figuring out how much of your inventory is overaged, and comparing the inventory you stock with the sales it generates. The final form in the guide allows you to calculate the return you're earning on your inventory investment. 

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