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How Is Automotive Inventory Management Expected to Look in Q2?

As the end of Q1 approaches, it is a critical time for dealership sales representatives and managers to review their vehicle inventory management strategies and sales tactics. Dealers need to evaluate their new car inventory levels and performance over the previous year and use this information to improve their processes ahead of Q2.

By analyzing their inventory turnover rate and comparing Q1 to the same period last year, dealers can proactively identify areas for improvement and make data-driven decisions to optimize their sales tactics.

Dealers should review inventory levels to ensure they align with their sales goals for the upcoming quarter. They should also analyze their sales data to determine if there are any potential issues that may be hindering their ability to sell vehicles, such as ineffective pricing or marketing strategies.

By identifying these issues, dealers can develop a plan of action for Q2 that includes adjustments to:

  • Pricing 
  • Marketing strategies 
  • Inventory levels 

Taking a proactive approach to automotive inventory management systems can help dealers optimize their sales tactics and drive greater success in the months ahead.

In this blog post, we’ll explore what’s happened so far in 2023 and what auto dealers should expect heading into Q2, including:

  • The state of automotive inventory
  • How to prepare your dealership staff for the road ahead
  • How to provide an exceptional dealership customer experience

How Has Inventory Looked So Far in 2023?

The automotive market faced a number of challenges in 2022, many of which have followed us into 2023, including supply chain disruptions and the ongoing semiconductor shortage. These factors resulted in production delays and reduced inventory for some automakers, particularly for popular models and brands. As a result, dealership inventory levels were affected, and some dealerships struggled to maintain adequate inventory to meet consumer demand.

According to analysts, the total number of auto sales in the US for the current year is expected to be around 13.7 million. This figure represents a decrease from the 15.1 million units sold in 2021, and the 14.6 million units sold in 2020. Looking ahead to 2023, S&P Global Mobility predicted a 5.6% increase in global new vehicle sales, with the number expected to reach nearly 83.6 million units. S&P Global Mobility also expects sales to rise by 7% to approximately 14.8 million units in 2023.

According to the S&P Global Mobility report for February, US auto sales in the first two months of the year have been holding steady, with a 6.5% increase in February compared to the same month in 2022. February 2023 saw an estimated 1.1 million new-vehicle sales, which is a slight decrease compared to January 2023.

Demand for new vehicles remains strong as consumers continue to seek out vehicles that offer advanced safety features and high-end technology. However, the ongoing semiconductor shortage and supply chain disruptions continue to impact production levels and inventory levels, with some automakers and dealerships seeing reduced availability of certain models.

Despite these challenges, the US auto industry is poised for growth in the coming months, with improving inventory levels and continued consumer demand driving sales. The report predicts that US auto sales for the year will reach 14.8 million units, which represents a 7% increase compared to 2022.

How To Prepare Your Dealership Staff

When preparing their staff for Q2, dealership sales managers should keep several key factors in mind. First, they should ensure that their sales teams are always knowledgeable about the current inventory levels and pricing for their dealership’s products and services. This will allow sales representatives to provide accurate information to customers and make informed recommendations based on their needs and preferences.

Additionally, managers should focus on training their staff to provide exceptional customer service, based on the dealership’s overall brand promise. This can include teaching staff how to:

  • Effectively communicate with customers digitally 
  • Identify the needs and preferences of a changing customer base 
  • Personalize their recommendations accordingly

Providing ongoing training can help ensure that staff are consistently delivering high-quality service and building strong customer relationships.

To efficiently and consistently take charge of their dealership’s products and services, leaders can implement several strategies. One effective approach is to regularly review inventory levels and pricing to ensure that they are competitive and aligned with market trends. This can involve monitoring industry reports and conducting market research to stay up-to-date on current pricing and demand.

How to Provide an Exceptional Dealership Customer Experience

Ultimately, the key to effectively managing products and services at an automotive dealership is to focus on providing exceptional customer service and staying ahead of market trends. Dealership sales teams can cultivate a positive customer experience by implementing several tactics. One way is to ensure that the sales representatives are actively listening to customers and engaging in a two-way dialogue to understand their needs and preferences. Additionally, sales representatives should be knowledgeable and informative about the products and services they are selling.

Providing exceptional customer service is also important. Something as simple as responding promptly to customer inquiries and addressing concerns in a timely and professional manner can make a real difference. Building lasting relationships with customers through regular contact and personalized recommendations is a necessary step in earning loyalty. 

Transparency and honesty in pricing and details associated with a sale are also key to creating a positive customer experience. By consistently implementing these tactics, dealership sales teams can create a positive and long-lasting impression on their customers.

How Can Mastermind Help?

Mastermind’s Market Impact analytics dashboard allows dealers to compare their performance with other dealers, as well as across high-level benchmarks including:

  • Make
  • Model
  • Segment 

With this information, dealers can see data on pre-owned sales (in available markets), which is information not readily available from OEMs. This empowers dealers to identify critical opportunities and improve their inventory mix based on what is selling best in their area,  ultimately increasing their profitability.


Managing inventory levels and optimizing sales tactics are two critical steps to the success of automotive dealerships heading into the remainder of 2023. As we approach the end of Q1 and prepare for Q2, it’s essential for dealerships to evaluate their performance and make data-driven decisions to improve their processes. Despite challenges from supply chain disruptions and reduced inventory levels, the US auto industry is still poised for growth in 2023. 

To prepare their staff for the upcoming quarter, dealership sales managers should focus on providing exceptional customer service, staying ahead of market trends, and implementing technology solutions like Mastermind. By leveraging these tools and strategies, dealerships can drive greater success and build long-lasting relationships with their customers.