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Lower Holding Costs Increase Gross Profit
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Definition:
Holding Cost: money spent to keep and maintain a stock of goods in storage.
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In the used car business, we know that every car on the lot is a depreciating asset with an increasing holding cost. The longer you hold onto a car, the more it is cutting into your gross profit.
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To keep holding costs down and gross profits up, you need to move your inventory on and off the lot as quickly as possible - we call this velocity.
From acquisition to reconditioning to the front line and to the customer, this momentum is most directly related to the profitability of your dealership.
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Works on all Platforms.
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