The Most Underused 15 Seconds at Your Dealership

Well, hey, let's dive in.

I want to go straight to the mailbag.

And, you know, Brother Anderson got a good piece of mail in from our good friend over in Denmark.

Now, listeners and viewers, just to let you know, we reach across the world.

That's why I introduced OPPO as the world famous, because we do reach across the world.

And I had a great question come in that applies here in the United States and in Canada equally as much as it does over in Denmark.

So Michael was asking a really great, great question.

I'm going to paraphrase it about, you know, hey, EVs.

The cost of ownership of vehicles, what it costs to replace cars today, some of the vehicles he has right now, he owns them better than.

This probably sounds like a familiar story to our brethren here in the United States and in Canada.

But his question was, hey, you know, it's costing me a little bit more money to replace this inventory.

You know, should I sit back and wait? And you'll capture that gross on that inventory because I own it so right.

It would have cost me to replace it as higher.

Yeah.

Or should I worry about velocity still? Should I worry about turn? Should I worry about getting that inventory pushed faster? Well, Michael, I'm going to tell you, brother, and I know you're an avid listener, I would tell you this 100%.

And then I'm going to get Ronaldo and John way in on this, but I'm going to get my two cents worth here.

turn is still the key so the latter to your question yes the cost of ownership is going to be more but it's not just more for you it's more for everybody else out in your market so within due time and very quick time the market's going to re-level set for you and the cost to replace for consumers is going to be higher just like the cost to replace for the dealer is going to be higher there's There's two facets that you got to remember.

So again, this applies to the United States.

It applies to Canada equally as much as it does over in Europe.

You have a cost to hold that vehicle or a holding cost or a boarding cost.

So whatever profit potential that you may think that you're going to squeeze out and hold on to, if I just hold on to it for another 30 days or 45 days or 60 days, You're eating away at your overall net profits by holding onto that vehicle longer.

So the short answer that I'm going to give you is turn the inventory as quick as you possibly can.

Naldo, over to you.

You had some insight to that.

Well, I always like to think about, and this might be an abstract concept a little bit, but the cost of lost opportunity.