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Automotive Sales
May 29, 2025

How Dealerships Can Overcome Inventory Shortages in 2025

Reading time: 5 minutes
How Dealerships Can Overcome Inventory Shortages in 2025

Inventory shortages continue to challenge car dealerships across Canada—even years after the initial shock of the pandemic. What was once a rare issue tied to finances is now an industry-wide hurdle, with low supply affecting everything from showroom appearances to customer satisfaction and dealership profitability.

At Autocorp.ai, we know that having a near-empty lot is more than just a bad look—it’s a missed opportunity. Today’s customers expect options, whether it’s choosing between a white or black Jetta or comparing trims, features, and price points. When your lot feels limited, your sales potential shrinks. But the good news is that you don’t have to settle for a shortage.

Here are proven strategies dealerships can use to boost inventory, improve customer experience, and keep your lot looking full—without sacrificing margins.

1. Make It Known: You’re Buying Used Cars
You can’t acquire more inventory if customers don’t know you’re in the market. Use every platform available—social media, your website, in-store signage, and paid ads—to broadcast that your dealership is actively buying used vehicles. Even better, run a campaign that incentivizes trade-ins with offers like instant appraisals, bonus cash, or fast-track inspections.

Don’t forget to use your existing CRM and lead database. Reach out to previous customers who might be ready to upgrade, and let them know you’re interested in their current vehicle. The easier you make it for them to sell, the more likely they’ll take you up on the offer.

2. Leverage Service Lane Opportunities
Your service department can be one of the most powerful tools in your inventory strategy. When customers bring in vehicles for costly repairs, it often creates a moment of decision—should they fix the car or trade it in?

Train your service advisors to spot these opportunities and start the conversation. Offering a fair trade-in value and a quick, seamless appraisal process can lead to surprise acquisitions right from your shop floor.

3. Use a Reliable Trade-In Tool to Scale Up Leads
Modern customers expect instant, online experiences. That’s where a reliable trade-in tools come into play. These tools, powered by trusted sources, let website visitors get an accurate trade-in value in seconds.

Not only do they deliver real-time appraisals, but they also capture high-intent leads directly into your CRM, giving your sales team a pipeline of customers already considering a trade. Since the data is backed by established third-party sources, customers feel confident in the pricing—and are more likely to move forward.

4. Reach Beyond Your Backyard
Expanding your marketing efforts geographically can bring in new customers from regions where online retailers have gained traction. It may require some additional planning from your sales and delivery teams, but the investment can be worth it.

By marketing across a wider region—and offering services like remote appraisals, at-home test drives, or vehicle delivery—you can attract buyers who prefer online convenience but still want the trust and experience of a local dealership.

5. Optimize Your Lot’s Visual Appeal
If your inventory still looks sparse after you’ve exhausted acquisition efforts, focus on improving presentation. Here are a few quick tricks to maximize visual impact:

  • Space out vehicles to make the lot appear fuller.
  • Use planters, banners, or vertical signage to create visual interest.
  • Keep the lot meticulously clean and organized.
  • Rotate vehicle positions to give a sense of freshness.

Remember: presentation influences perception. A well-maintained, thoughtfully arranged lot can still leave a strong first impression—even during tight inventory periods.

6. Explore Industry Tools and Insights
Stay informed with industry resources that can guide your strategy. Platforms like Canadian Black Book offer valuable insights into market trends, vehicle values, and consumer behaviour. Leveraging this data can help you make smarter acquisition decisions and keep your strategy ahead of the curve.

Don’t Let the Shortage Slow You Down

While dealership inventory shortages aren’t going away overnight, the way you respond makes all the difference. With the right strategies, tools, and messaging, your dealership can stay ahead of the curve—keeping the lot full, leads flowing, and deals closing.

Ready to power up your trade-in leads and boost inventory? Learn more about how AVA™ Trade can help you bring in more vehicles and more qualified buyers, all online.

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