Post #2430 by Jimkredux on the US Policy board

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Having been in the industry, I can tell you that rapidly falling prices will hurt all owners of used car inventory,some worse than others. It is a function of how quickly that inventory can be turned over. The fastest turnover I ever experienced was at an under $3000 lot. We turned inventory three times per month, and we're not deeply affected by wholesale price changes because of that. At the average new car store the average turnover is more on the order of 60 days, and they are more affected. At ninety days most used inventory was wholesaled or sold near cost retail. Many sins can be hidden in old inventory if the owners are not vigilant.

Jk

P.S. These observations are 6 years dated, but the principle remains.

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