The Art of the Flip: Why Used Car Turn Rules No Longer Apply
For decades, the mantra in used car retail was simple:
“Turn your inventory in 30 to 45 days. If it hits 60, wholesale it and move on.”
That logic was sound—back when supply was predictable and the auction lanes were full of clean, late-model cars. But we’re not living in that world anymore.
A Shrinking Pool of Used Inventory
COVID disrupted everything, and the aftershocks are still being felt. Fewer new cars were sold between 2020 and 2022, which means fewer trade-ins and off-lease vehicles now. Rental companies kept their fleets longer. Lease returns dried up. Consumers are holding onto cars for record lengths of time.
Dealers are chasing fewer cars—and paying more for them.
So what happens when you retail a car in 32 days and try to replace it?
You can’t. Not without overpaying.
Forget Fast. Focus on Smart.
There’s a new playbook emerging for used car operators:
✅ It’s no longer about how fast you turn a unit.
✅ It’s about how profitably you can retail it—or wholesale it.
✅ And it’s about knowing when to hold a car that still has margin, even if the clock is ticking.
Let’s be honest: Would you rather sell a car in 37 days and make $800, or sell it in 64 days and make $2,000?
Reconditioning is the Differentiator
In a tight market, the best operators don’t just buy clean cars.
They shape less-than-perfect cars into retail-ready winners.
With the right recon processes, these aren’t dealbreakers.
They’re margin opportunities.
This isn’t guesswork—it’s an art form. One that blends mechanical savvy, cosmetic instincts, and a deep understanding of what the customer will pay for.
Build the Culture. Reap the Margin.
Most dealers already have the tools—they just need the mindset:
🛠️ Train your team to spot shapeable inventory.
🧰 Get creative with cosmetic and mechanical repairs.
📈 Price based on replacement cost, not aging buckets.
This is the new used car economy. It rewards operators who can:
Want Help? Ask Todd.
I built a free AI assistant to help dealers with questions just like this.
From used car operations and inventory strategy to reconditioning and marketing.
👋 Ask Todd anytime — it’s powered by my playbooks, insights, and experience, and it’s available 24/7.
