How do I find out how long a used car lot’s vehicles sit unsold?

Start with dates. The lot’s software or logbook should show when each car was bought, when it was ready for sale and when it sold. Ask for the full list over a recent period, and work out the time between those dates. Include cars that have not sold yet, as they are the ones that tell the truth about slow sales.

Next, look at the oldest cars on the lot. What are they, why are they still there and what was paid for them? Aging stock often hides a past buying mistake or a price the seller will not cut. Ask whether the lot has ever written one down, and how it decides when to wholesale a car instead of holding on.

Then look at the pattern. Do certain makes, price levels or seasons sit longer? Are there weeks when almost nothing sells? Ask the seller to explain what they do about it. Your accountant can compare stock aging to the lender’s terms and the cost of carrying stock, which matters if the lot borrows to buy cars. Also ask how the lot decides on price changes. A set routine for reviewing slow cars is a good sign, while a habit of waiting and hoping is not.

Key takeaways

• Calculate time on lot from purchase and sale dates for every sold car.
• Include unsold cars and study the oldest ones in detail.
• Look for patterns by make, price band and season.