Dealer glossary
Aged inventory
Vehicles that have been in stock longer than the store target, usually measured in days since acquisition.
Definition
Most dealerships set an age threshold - often 45, 60 or 90 days - after which a unit counts as aged. The threshold is arbitrary; what it is for is forcing a decision.
Aged units cost money in three ways at once: floor plan interest accrues, the market value usually falls, and the capital is not available to buy something that would turn. The longer the unit sits, the worse all three get.
The practical use of an aged list is that it is a work queue, not a report. Every unit on it needs a decision - reprice, re-merchandise, move it, or wholesale it.
Related terms.
Days supply →
How long the current inventory would last at the recent rate of sale, expressed in days.
Floor plan →
A revolving line of credit a dealership uses to buy inventory, secured by the vehicles themselves and paid off when each unit sells.
Curtailment →
A required partial paydown on a floored vehicle once it has been in inventory beyond an agreed period.
See how this works in one system.
DealersCloud runs inventory, the CRM, desking, the books and your dealer website on the same records - so the things in this glossary stop living in separate places.
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