Inventory Turn
Inventory turn measures how quickly a dealership sells its vehicle inventory. A higher turn rate means vehicles sell faster, reducing holding costs and improving used car profitability.
Inventory turn (or inventory turnover rate) is a metric that measures how frequently a dealership sells and replaces its vehicle inventory over a given period. A high inventory turn rate indicates that vehicles are selling quickly, minimizing holding costs, aging inventory, and margin deterioration from price reductions. Most dealerships aim for used vehicle inventory turns of 10–15 times per year (roughly every 24–36 days). Vehicles that sit beyond 45–60 days typically require significant price reductions to move, directly cutting into front-end gross. Inventory management platforms like vAuto help dealers optimize pricing to maintain healthy turns.
Category: Operations
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