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Shifting product demand, the volume of used cars coming into the market, unpredictable sales levels – all these factors and more make it a challenge to keep your lots stocked with the right level and types of autos.

Key Takeaways

  • Rising interest rates, changes in product demand, a slowdown in the growth rate of new auto sales, and swelling levels of late-model used cars in the market are creating challenges for dealers in managing inventories.
  • The risk of growing days-on-hand inventory is heightened by pressure from manufacturers to take production, often through incentive programs.
  • Dealers can avoid credit overline situations by working closely with lenders and employing disciplined inventory management practices.