Dale Pollak’s ‘New Truth of Used-Car Profitability’

Dale Pollak likens himself to a doctor who has a prescription to fix used-vehicle departments. The remedy does not go down easy.

“It’s going to be really, really, really distasteful,” Pollak tells dealers. “It’s going to be hard for you to take this medicine.”

But take the medicine they must, if they want to be profitable in what the vAuto founder is calling “the new truth of used-vehicle profitability.”

Pollak, who also pioneered the widely used method of velocity inventory management — in which inventory is supposed to be turned as quickly as possible — has been evangelizing a new approach. So far, dealers seem slow to catch on, but eventually they’ll have no choice, he said.

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