Overview

Inventory turn is the heartbeat of dealership profitability. AI demand forecasting helps dealers stock the right vehicles, reduce aging, and protect margin by aligning inventory with local demand.

The Cost of Slow Turn

• Higher floorplan expenses
• Increased discounting
• Reduced cash flow flexibility

How AI Forecasting Works

AI models combine local demand signals with dealership performance data.

• Search trends by zip code
• Historical sales velocity by trim
• Seasonality and incentives

Inventory Decisions AI Can Improve

Trim and Package Mix

AI predicts which trims will move fastest in your market.

Ordering and Allocation

Use AI insights to adjust OEM orders and dealer trades.

Aging Risk Alerts

AI flags units likely to age past 45 or 60 days so you can act earlier.

A Practical Forecasting Workflow

1. Import historical sales by trim
2. Add local demand signals and market pricing
3. Create a 30-60-90 day forecast
4. Set alerts for aging risk

KPIs to Monitor

• Days to turn by segment
• Floorplan cost per unit
• Aged inventory percentage
• Gross per unit vs. turn speed

Conclusion

AI forecasting makes inventory planning less guesswork and more strategy. Dealers who align stock with demand see faster turns, lower costs, and stronger margins.