Excess Holding and Floorplan Costs from Slow Inventory Turn

Extra 30–90 days of aging on $100,000+ of slow-moving parts at an effective 1–2% monthly carrying cost plus obsolescence risk can easily translate to $1,000–$3,000 per month in pure carrying cost and thousands more in write-downs when parts are finally dumped at deep discounts. • For a mid-sized dealer with ~100 units dedicated or available to these institutional buyers, an average of 10 extra days in age at $25 per vehicle per day equates to roughly $25,000 per month in avoidable carrying and floorplan costs, plus additional margin erosion when over-aged units are discounted or sent to auction. • If 30–50 ex-rental vehicles each carry 5–10 unnecessary extra days of holding due to recon bottlenecks at $20–$30 per day, the dealer loses roughly $3,000–$15,000 per month in floorplan, insurance, and extra touch-up costs.

DMV and accounting staff manually track vehicle status, aging, and delivery readiness in spreadsheets, paper folders, email threads, and ad hoc calls/texts with buyers, banks, and the DMV instead of having an integrated, real-time aging and pricing workflow tied to floorplan and demand data. • Parts and service teams manually prioritize recon for ex-rental units using paper RO boards, spreadsheets, and informal conversations rather than a system that ties recon sequencing to unit age, floorplan, and exit strategy. • Parts managers and fleet managers manually match aged vehicles with parts and upfit kits using spreadsheets, DMS lookups, paper notes, and back-and-forth emails or calls to schedule installs, instead of a system that optimizes which aged units to prioritize for build-out and sale.