Inventory and recon
What is days on lot?
Also called: days in inventory, age
Days on lot counts how long a vehicle has been in your inventory, and it is the single best predictor of what it will finally sell for.
Gross erodes with age in a fairly predictable way: floorplan interest accrues daily, the market moves under you, and the price drops you take to move an aged unit come straight out of the front end.
Measure from acquisition, not from frontline. Counting from the day it hit the line hides the week it spent waiting on a part.
Handle this automatically
Loturn tracks every cost against the VIN and shows live profit on every car, with real dealer accounting built in.
Related terms
Floor plan
A floor plan is a revolving credit line used to buy inventory, secured by the vehicles themselves, repaid as each car sells.
Recon
Recon is everything you spend to make a bought car frontline ready: mechanical repair, tires, body and paint, and detail.
Frontline ready
A vehicle is frontline ready when recon is finished, photos are taken, and it is priced and listed for retail sale.
General information for US dealers, not legal advice. Rules change and vary by state, so confirm specifics with your state agency or counsel.