Over the past year, used inventory has gotten harder (and more expensive) to source. At the same time, most buyers are fighting for the same $25,000 cars, tightening margins across the board.
Knowing this, Malik Hussain, general manager at Bill Jacobs Volkswagen in Chicagoland, is countering both pressures with a daily rhythm built around data, disciplined buying, and service-drive sourcing.
What they’re saying: “Business is pretty good right now, and I feel like we're on a great trajectory to end the year strong,” Hussain told Daily Dealer Live hosts Sam D’Arc and Uli de’ Martino. “Used cars are obviously the big challenge,” he added.
That’s why, instead of guessing what to buy, Hussain runs his day on data.
“I'm on Stockwave, which is a Cox Automotive product…I'm on Mannheim. I'm on ACV. I'm on OPENLANE. I'm in our service drive, just trying to find the next best used car,” he said.
To decide what’s worth buying, he looks at “like-mine day supply,” or how quickly identical trims are selling in the market.
“I usually put 25 in a vehicle set… I had many experts tell me 15 is a good number or 20 is a good number. I found 25 to be the best number,” he said.
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Worth noting: He sticks to that rule because buying on feel is where most dealers get burned.
“A lot of people make mistakes buying cars they like because they might be high-day-supply cars… it might not fit your strategy of selling.”
His rule of thumb: Let the data guide what to buy, and the experience guide where.
This includes sticking with the auction lanes and sellers that have proven reliable, which, for his team, usually leads to about 120 retail units a month and a 1:1 new-to-used ratio.
And in the service drive: His team uses tools like Xtime and MyKarma to pre-appraise every service appointment, which allows them to place a bold placard with a KBB price on the dashboard.
“Please see us in sales for more info. It's always a starter. It's a talking point,” he said.
Hussain said this strategy drives about 15% of the store’s used volume, with everyone sharing in the upside via a $250 spiff that’s earned when a customer sells or trades.
Zooming out: As Hussain explained, this is a system that, over time, becomes self-reinforcing. Data informs buys, service drives feed inventory, and every lane decision is logged and learned from. Doesn’t get stronger than that.“
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