If you want to understand where a dealership’s next opportunity may come from, spend less time looking at the new-car sticker and more time looking at the used-car lot.
Affordability is shaping buying decisions. In a recent CBT News interview, dealer Phil Pecoraro called used cars his store’s biggest opportunity and said vehicles priced under $30,000 were moving almost as quickly as he could stock them. That is one dealer’s experience, not a promise that every store will see the same results. But it captures a question every dealer principal should be asking: Do we have the right used vehicles for the customers in our market?
Demand is only half the story
Used vehicles give buyers choices at different price points, from certified pre-owned and off-lease models to older, lower-priced transportation. Bill Zadeits of Cherokee Media Group recently pointed to that breadth as a growing opportunity for dealers as new-vehicle prices rise. He also noted that returning off-lease electric vehicles could introduce another set of options for used-car shoppers
The broader numbers reinforce the category’s importance. CBT News, citing CarGurus data, reported that used-vehicle demand rose 2.3% year over year in August 2026, while the average used listing price held at $30,200 for a fourth consecutive month. Strong interest does not mean every used vehicle is affordable—or that every unit will be profitable. It means dealers need to understand precisely where local demand meets the inventory they can acquire and retail well.
The opportunity is in execution
In my view, a strong used-vehicle department is not built by simply putting more cars on the ground. It is built by making disciplined decisions, repeatedly:
- Buy for your market. Know which price bands and vehicle types your customers are actually shopping.
- Account for the full cost of every unit. Acquisition price is only the starting point; reconditioning, carrying time, and the eventual retail price determine whether an attractive purchase becomes a good business decision.
- Move quickly without cutting corners. A vehicle cannot meet demand while it waits for inspection, reconditioning, photographs, or an accurate online listing.
- Watch the inventory that does not move. Fast-selling units can mask aging vehicles that tie up capital and erode margins.
Pecoraro’s experience with sub-$30,000 vehicles is compelling. The lesson, though, is not to chase a price point at any cost. The right question is whether a dealership can consistently source, prepare, price, and sell those vehicles at a return that justifies the investment.
What buyers and sellers should notice
Used-vehicle performance also matters beyond the sales department. When evaluating a dealership, I want to understand whether its results depend on a few favorable months or on a repeatable operating process. How does the store acquire inventory? How quickly does it get vehicles retail-ready? Where are its aging and margin pressures? Those questions help distinguish a durable business from one that has simply benefited from a strong market.
The used-vehicle market deserves the attention it is getting. But demand alone does not create dealership value. Consistent execution does. Dealers who pair a clear understanding of their customers with disciplined inventory management will be better positioned to turn today’s interest in used vehicles into lasting strength for their stores.
Gordon G. Wisbach, Jr. is Founder and President of GW Marketing Services, an automotive dealership brokerage and advisory firm. To discuss dealership strategy, appraisal, or a potential transaction, contact Gordon at gordon@gwmarketingservices.com or 508-395-2500.