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— CDG

"Don't know if I'm coming up or down," the late Jimi Hendrix sings on his 1967 hit “Purple Haze.” (Not about drugs, p.s.) 

In 2026, sounds like a lyric about inventory.

And it’s a familiar tune: There’s too little, or too much. Plus used car pipeline problems.

Cox Automotive's vAuto data released last week said new-vehicle days' supply fell to 76 in May, down from 96 in February.

But that average hides different realities by brand.

We asked for input from five voices at LaFontaine Automotive Group, which owns 46 stores in Michigan, on how they handle it.

The Motor City dudes shared tips on managing hybrid inventory, dealing with brand-specific stocking woes, and the latest used-car darling: service lane conquests.

The hybrid split is a stocking problem hampered by uneven inventory levels.

People still crave hard-to-stock traditional hybrids. And yet, dealers can’t get rid of corded plug-ins.

The CarGurus Q1 2026 Intelligence Report said hybrids have about 46.8 days supply, and favorites such as the Toyota Grand Highlander, Sienna, RAV4, and Corolla Cross, are all under 20 days. 

The less desirable plug-ins sit at 97.7 days.

Nick Hartwell, general sales manager at the LaFontaine Dearborn Complex, reminded us that “customers prefer cordless everything.”

"You get a lot of the same performance, a lot of the same power handling, same fuel economy out of a traditional hybrid vehicle as you do with a plug-in hybrid vehicle...," Hartwell said.

Nick Hartwell
LaFontaine
Dearborn Complex

Regarding shortages: Hartwell suggests working ahead.

Sell ’em before you get ‘em. Match customers with incoming models early and take reservations.

Corporate Director Max Muncey noted that some allocation is earned.

“I believe a lot of your allocation comes off of that CSI,” Muncey said.

Max Muncey
LaFontaine Automotive Group

But hitting targets doesn’t automatically mean extra cars.

"I've been in meetings before where we will ask for a lion's share of inventory, and the response from the automaker is, ‘I'd love to give it to you, but I have every other dealer auditing that shipment’..." Muncey said.

There’s always the route of charming fellow dealers, and that includes cross-brand trade options for groups that can.

The signal: Sell early and lean on relationships.

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Slow-turning inventory is morphing into a brand-specific problem.

The first-quarter Haig Report, published May 27, tracked an average of 53 days supply across all brands in April, 5.9% lower than the five-year average.

Sounds good.

A closer look, though, exposes by-brand instability.

Cadillac has moved to the lean lane with Toyota and Lexus, while Acura, Volkswagen, CDJR, and the Buick Envision, were flagged for hefty inventory. (With Subaru and Mazda on watch).

Nathan Householder, general sales manager at LaFontaine Cadillac Buick GMC, feels both extremes.

For instance, trying to wrangle Caddies.

“We're trying to do everything we can to gather more, trying to buy everything, but new trading and getting inventory to the store is very difficult,” Householder said.

Nathan Householder
LaFontaine Cadillac
Buick GMC

On the flip side: The Envision has become a floor plan problem with no manufacturer help. Payments have risen a few hundred dollars to near $700, with no rebates, Householder said.

Then there's Volkswagen… No hybrids until 2027-28, EVs with recall issues, and the short-lived ID Buzz.

How LaFontaine works it: Cap days supply at 60-65. When sales dwindle, focus shifts to used cars and service, Hartwell said.

Staying on top of it is key. LaFontaine employs inventory managers, for example.

“Every morning and every day, inventory is top of mind for them,” Muncey said. “It's not a set it and forget it, it's not a ‘Hey, let's hope we close out the end of the month.’”

Related, consistent floorplan calculations matter, too. Take a hit in one spot, make it up somewhere else, Householder said.

Some reminders:

  • Track the manufacturer's inventory count days.

  • Treat them like end-of-month: Householder said they make sure to account for every unit to maximize allocation.

  • And, it seems obvious, but make sure aged inventory moves first every day.

The takeaway: Each brand needs a unique strategy, with a no-days-off approach.

Service lanes are winning in used-car acquisitions, so make a plan for it.

Cox Automotive's vAuto data shows used days supply dropped from 52 in December to 37 by the end of March.

Another reason dealers keep finding ways to score service-lane acquisitions.

Chase Leo, used car director at LaFontaine, runs a sourcing hierarchy that includes customer trades, service lanes, and auction.

“Don't let the market come to you,” Leo said. “Attack the market and find out exactly what it is that we need in those high demand vehicles, and if we can transact on that car.”

Chase Leo
LaFontaine Automotive Group

But service lane success isn’t always a sure thing.

“Some dealers think it's as simple as just plopping a salesperson in the service lane and have them go buy the car,” Muncey said. “It's much more complex than that."

Talk tactics to me:

  • Review tomorrow's service appointments today.

  • Identify vehicles that match your stocking strategy before the customer arrives.

  • Offer a complimentary, no-pressure, third-party-backed appraisal.

  • Target high consumer-paid ROs with declined services. 

And remember to diversify.

Matt Szabla, brand manager of the group’s Dearborn complex, also likes to run the full spectrum: trades, auction, curb buys, KBB buying centers, Facebook Marketplace. 

“The only way you look at volume is to diversify your portfolio, because you're going to only win so many,” Szabla said.

Matt Szabla
LaFontaine Automotive Group

Don’t worry, the math checks out.

"The conquest of a customer costs five to 10 times as much as it does to retain one," Szabla said. 

Keep it simple: Service lane acquisitions will remain vital, so don’t chance it. Have a dedicated plan.

Bottom line: Inventory always fluctuates, and some tactics may feel obvious.

But many veteran dealers I talk with say the COVID era misled inexperienced dealers into thinking auto retail equals an easy dollar.

Now, they’re struggling to replicate success because, the vets say, nobody learns the basics. No walking before crawling.

That said: Treat inventory like a daily task, recognize it’s not a one-size-fits-all strategy, and don’t wing it for tactics such as service lane searches.

Thanks for reading, everyone.
— CDG

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