Halftime Adjustments: Winning Strategies for Used Car Dealers

The used car market is shifting—and fast. On this episode of LotTalk, hosts Chris Keene, Renaldo Leonard, and John Anderson unpacked what these changes mean for dealers and how to keep operations running lean and profitable. The conversation drew on fresh market insights and real dealer examples, leaving listeners with actionable steps they can put to work immediately.

The Market is Moving—Are You?

The hosts kicked things off by reflecting on market updates from Jason Rice. Time and again, Rice’s predictions about supply, demand, and shopper behavior have proven accurate. His advice? Pay close attention to early indicators. Shopper activity typically dips in late summer and early fall as school starts and football season ramps up. Dealers who ignore this trend risk carrying excess inventory just as demand cools .

That’s why staying proactive is critical. Dealers who monitor market movements daily, not monthly, are the ones who bounce back quickly when sales slow down.

Pricing Discipline and Bucket Management

One major takeaway from the discussion was the importance of consistent pricing adjustments. Too many dealers set a price on day one and let the vehicle sit for weeks without changes. As the market shifts, their inventory drifts upward in price-to-market percentage, leaving them uncompetitive .

The hosts stressed that you don’t need to slash prices dramatically. Small, regular adjustments tied to activity levels keep vehicles relevant. As Chris put it, “People shop by price, purchase by payment.” If a car has activity, focus on follow-up. If it doesn’t, investigate merchandising, photos, and descriptions before turning to price.

The Role of Merchandising

Photos and descriptions aren’t just window dressing—they’re your vehicle’s only chance to make a first impression. Ronaldo reminded listeners: if you’re asking $22,000, the car needs to look and feel like it’s worth $25,000. Value perception has to exceed the price point, especially when customers are pulling back from the market .

Inventory Acquisition: Trades Over Auctions

Another hot topic was sourcing inventory. Auctions can fill gaps, but relying on them too heavily erodes gross. Fees, transport costs, and higher purchase prices often add $1,500 or more compared to trade-ins.

The solution? Train your team to maximize trade opportunities and source cars directly from the street. Engage your entire staff in the hunt. If you’re willing to pay fees at the auction, why not incentivize employees to bring in cars from their networks? Not only does this lower acquisition costs, it builds a pipeline of inventory that’s better matched to your store’s market .

Halftime Adjustments: The Football Analogy

Renaldo drew a powerful comparison to his days playing football at Texas Tech. At halftime, coaches didn’t scrap the whole playbook—they identified what wasn’t working, made small but crucial adjustments, and executed in the second half.

Dealers should approach inventory the same way. Look at 15-day trends, identify what’s lagging, and make timely corrections. As John put it: “Set it and forget it is a hope, not a strategy.”

Blind Spots and Bounce Backs

Even top-performing dealers can miss blind spots. The transcript highlighted one Ohio dealer who dominated their market but failed to catch vehicles bleeding into aged buckets. The result? Missed sales opportunities as shopper activity declined.

The best dealers avoid these pitfalls by being “students of the game.” They study their data daily, stay consistent year-round, and never stop adjusting. Their valleys are short-lived because they respond quickly.

Takeaways for Dealers

The episode wrapped with three key action items:

1. Audit your inventory daily. Look for vehicles without activity or recent price changes. Don’t just drop prices—review merchandising, photos, and descriptions first.
2. Share the big picture with your team. When backfilling with auction cars, explain why margins may be slimmer short-term and how trades will improve the mix long-term.
3. Train staff on trade conversations. Your CRM is full of untapped sourcing opportunities. Empower salespeople to log trade details and managers to follow up.

Conclusion

The market is shifting, but success isn’t about waiting for better times—it’s about controlling what you can control. As the hosts emphasized, the best dealers aren’t victims of the market. They study, adjust, and execute. By treating each month like halftime and making the right adjustments, dealers can stay lean, clean, and ready to capitalize when the market turns back in their favor.