4-Step Guide to Acquiring
the Best Pre-Owned Inventory
Amid Chip Shortages
As chip shortages slow production for most brands, new vehicle inventories at dealerships around the
country are reaching historic lows. Meanwhile, customers are returning to market, driving demand and
boosting already high sales prices even higher.
While for some dealers this can translate into exceptionally high profits in the short term, IHS Markit
estimates this shortage will persist in the auto industry until at least 2022.
Looking ahead, it's critical dealers take control of their future success and re-evaluate how they approach
stocking their inventory – mainly how they acquire in-demand used vehicles.
1. Leverage Trade & Buy-Back Opportunities
With retail acquisitions typically generating less overhead than auction – plus the added opportunity to make
a sale – buy-backs and trades are key to maximizing pre-owned profitability. Dealers who can identify and
engage drivers of in-demand vehicles in their market have a significant advantage over the competition.
Leverage data from your dealership DMS and CRM to identify prospective trade opportunities,
such as in your upcoming service appointments. Look for indicators like:
• Out of warranty
• Over lease mileage
• New product design
• Payment decrease opportunity
• Desired used car lot product
An estimated 1.3 million fewer light vehicles were produced in
the first quarter of 2021 because of semiconductor shortages.
IHS Markit, March 2021