ACV facts & figures
Summary
Kraig Quisenberry from ACV spoke with Nick Johnson of Penz’s Automotive at NADA 2025. They discussed the growing challenges of used car profitability in 2025, particularly with inventory scarcity, rising parts and labor costs, and margin compression. Johnson emphasized the importance of consistent and thorough trade appraisals, leveraging both OBDII diagnostics and technician inspections to accurately assess reconditioning needs upfront. Johnson also stressed the need for collaboration between fixed ops and sales, proactive sourcing strategies, and tapping into service drive and consumer-direct acquisition opportunities. He encouraged dealers to diversify their sourcing, track appraisal performance, and maintain a steady flow of inventory to support dealership-wide profitability. Mr. Johnson's final message: get uncomfortable, widen your sourcing net, and take action to avoid falling behind. Watch the video here.
