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The automotive industry has always been a dynamic landscape with dealers navigating economic fluctuations, shifts in consumer preferences, changing emission regulations, and other disruptions. Understanding the latest trends will give you an edge when sourcing inventory to maximize sales.
Below are some of the trending inventory management strategies you can expect to see in 2025.
- AI tools for demand forecasting
Demand forecasting methods that rely heavily on historical data fall short in today’s rapidly changing environment. This approach doesn’t take into account the unpredictable nature of consumer behavior and market fluctuations. AI-powered inventory management systems offer a solution. By analyzing vast amounts of data, including real-time market trends, consumer preferences, and even public opinion, AI can significantly improve the accuracy of demand forecasts helping car dealers stock the right vehicles at the right time while reducing aged inventory and holding costs. - Increasing auction buys
To keep up with evolving consumer demands, dealers are sourcing vehicles outside of their local markets. Auction platforms like EDGE Pipeline allow you to seamlessly shop a variety of virtual auctions, and then buy and ship vehicles from one site. In addition, inventory management systems like Montway Automation Portal (M.A.P.) provide real-time quotes so dealers can see the cost of the shipment and determine whether the purchase makes sense for their business. - Simplifying appraisals
Building profitable used inventory is critical to your bottom line. From live events to new technology, dealerships are simplifying the automotive appraisal process to improve the customer experience.
Live appraisal events: Car owners like to know the actual value of their vehicles, which can only be obtained during an appraisal. Hosting live events is a way for dealerships to attract customers not actively engaged in a sale or trade-in transaction. These events create an opportunity to open meaningful conversations with potential buyers.
Appraisal technology: As more appraisal technology becomes widely available, fewer dealerships will rely on paper to complete the process. - Adjusting EV inventory
Globally, nearly one in five cars sold in 2023 was electric. In the U.S., new electric car registrations totaled 1.4 million last year, increasing by more than 40% compared to 2022.
With emissions regulations, policies, and manufacturing plans shifting in 2025, we’re seeing consumer demand changing as well. Auto dealers are adjusting their inventory levels, replacing EV stock with hybrids. This change is driven by consumer demand for more affordable options and range anxiety surrounding electric vehicles. At the end of 2024, hybrid vehicle sales accounted for nearly 11% of the market share.
Understanding consumer incentives: Consumers are always looking for ways to save money on their EV purchases, making it essential that car sales reps are familiar with incentives in their states. These resources can help you find them:
U.S. Department of Energy
Plug In America
EV tax credit eligibility
Claim Rebates for Installing an EV Charger at Home
You can also refer to your unique state laws and incentives on the U.S. Department of Energy’s website.
- Increasing use of automation
Technology solutions continue to help dealerships streamline vehicle inventory management using platforms like the Montway Automation Portal (M.A.P.). Such software helps dealers automate manual processes, centralize key metrics across multiple rooftops, and gain real-time visibility on all their inbound and outbound vehicle moves. We’ve seen dealer groups managing 20 or more rooftops access metrics from all stores to make data-driven decisions that help decrease cycle times and reduce the rate-per-mile to maximize their revenue. - Sourcing cars from customers
Dealerships continue to get creative as they search for vehicles. Some are turning to current car owners to meet optimal inventory levels through direct buys. This emerging trend even includes building a team whose sole responsibility is to reach out to customers. Email campaigns, phone calls, and direct mail tactics are being deployed to solicit cars from consumers who are not in the market to buy or trade in their current vehicles. - Increasing dealer-to-dealer trading
More dealers are conducting dealer-to-dealer swaps when searching for particular vehicles (and coming up short). This strategy is an efficient solution to diversify inventory and give customers the type of vehicle they are shopping for.
Keep your inventory profitable
To maximize sales and stay competitive, auto dealerships must continually adapt and evolve. Simplifying appraisals, continually adjusting inventory, and leveraging technology are just a few trends to watch this year.
About Montway Auto Transport
Montway Auto Transport is a leading nationwide logistics company, arranging shipments for more than 250,000 vehicles annually. Focusing on innovation and technology, we partner with dealerships nationwide. Visit Montway.com/Auto-Dealers or call 888-998-4161 to learn more about our services.