Rip the Band-Aid Off and Win on Both Gross and Volume

The Margin vs. Volume Myth: Dealers Don’t Have to Choose

If you’ve been reading the trade headlines lately, you’ve probably seen articles warning dealers that they face a tough decision: preserve gross profit or chase volume. According to Chris Keene, Renaldo Leonard, and John Anderson on the latest episode of LotTalk, that’s simply not true.

In their words, too many in the industry are buying into “white noise” that doesn’t match what’s happening on the ground. Data shows you can run volume and protect your margins—if you’re managing your inventory intentionally.

Don’t Believe the “Tight Supply” Hype

Several recent reports claim that used-car supply is tightening, but the hosts brought receipts. Platforms like AutoTrader and Cars.com currently show more vehicles listed than last year. Translation? Dealers who rush out to overstock in fear of shortages could be setting themselves up for a painful 60–90 days ahead.

Instead of reacting to every headline, the team urged dealers to focus on their own stores, markets, and people. As John put it: “My store, my market, my people—that’s where the truth is.”

Why Aged Inventory is Bleeding Dealers Dry

Here’s where the rubber meets the road: too many dealers are letting cars sit past 45–60 days, hoping for a miracle. The reality? By then, holding costs are eating away profits and aged cars are dragging down net performance.

Renaldo summed it up perfectly: “If you look up at day 30 and a car has no leads and no activity, you’re not the best end user for that vehicle. Cut your losses and move on.”

Key point: rip the Band-Aid off early. Either adjust pricing aggressively, wholesale the car while the market still has appetite, or replace it with inventory that matches what your store actually sells.

How to Stay Ahead: Practical Steps for Dealers

The podcast delivered several actionable takeaways that managers can apply today:

1. Audit Your Store’s Sales Patterns

Pull reports from your DMS, CRM, and inventory management tools. Look at:

• What segments turn the fastest (SUVs, trucks, sedans, etc.)
• Average days-to-sale by segment
• Price-to-market percentages on vehicles sold within 30 days

This tells you exactly what’s working—and what isn’t—in your own backyard.

2. Clean Your Inventory Now

If more than 15–20% of your inventory is in the 61+ day bucket, you’re in trouble heading into fall. Wholesale or deeply discount units now before shoppers slow down even further.

3. Don’t Just Chase Market Data—Validate It

When industry headlines talk about “tight supply” or “falling demand,” cross-check with your own sales velocity and third-party listings. Blindly following the noise can lead to overbuying and future losses.

4. Pay Managers on Net, Not Just Gross

A recurring theme: too many managers are incentivized to hold out for higher grosses, even if it kills overall profitability. Shifting pay plans toward net performance ensures decisions are made in the store’s best interest.

5. Strike While the Iron’s Hot

The market isn’t crashing, but it is shifting. Dealers with clean, fast-turning inventory will be best positioned when demand ramps back up around tax season. As John warned, “Don’t walk into the end of September with 60% of your lot aged past 61 days—you’ll be stuck while others are buying fresh.”

Passion with a Purpose

One of the most striking elements of the conversation was the passion behind it. Chris, John, and Renaldo weren’t just talking numbers—they were talking about protecting dealers from costly mistakes.

As Chris put it: “Don’t mistake passion for anything other than care. We want you to win.”

The trio’s advice boiled down to this:

• Stop playing defense with aged cars.
• Double down on what sells in your market.
• Be intentional about every unit you stock.

And here’s something you may not know: Lotpop also offers free training for used car managers directly through their website. It’s a no-cost way to sharpen your skills, get practical strategies, and stay ahead of market shifts.

Final Takeaway

You don’t have to choose between volume and gross. Dealers who know their data, clean up their aged inventory, and stock strategically can—and do—win on both fronts.

The hay’s in the barn, as Renaldo said. The work is straightforward: study your sales patterns, cut the dead weight, and stock into your strengths.

The question is: will you rip the Band-Aid off now, or wait until the bleeding gets worse?