Inventory acquisition is one of the biggest challenges facing dealers today—and it’s not getting easier. In a recent podcast, Micah Tindor joined Chrisey O’Hara to unpack this issue following their visit to NIADA, where acquisition was a hot topic among dealers. “Auction and lease volume is down,” Tindor explained. “That leaves dealers with one option: turn to the consumer market.”
In this article, we’ll break down what’s driving the inventory crunch and how dealers can build the muscle to overcome it. From auction shortages to shifting consumer behavior, both experts focused on how Kelley Blue Book® Instant Cash Offer (ICO) is helping dealers navigate the squeeze.
The average consumer takes 77 days to sell their vehicle1, but 56% of Kelley Blue Book® ICO users sell within the first three weeks. 2 As Tindor points out, most dealers only follow up on trade-in leads for seven to 30 days—leaving a 47-day gap where potential deals can slip through the cracks.
Building the Consumer Acquisition Muscle
Today’s consumers are more informed and more selective. “The average consumer has 2.6 cash offers at the time of sale,” said Tindor. “While both Millennials and Gen Z are now seeking between four and six cash offers”.3
And while the average consumer takes 77 days to sell their vehicle, 56% of Kelley Blue Book® ICO users sell within the first three weeks. “Over half of our clients are still converting within three weeks,” Tindor noted. But the remaining half? That’s where dealers need to work to build up their follow-up muscle.
Most dealers follow up with trade-in leads for just 7 to 30 days. That leaves a 47-day gap where potential deals are slipping through the cracks.
The Inventory Squeeze: What’s Causing It?
The traditional sources of inventory are drying up. Auction volume is dropping. In fact, “…with off-lease being down by 36% in 2025 and estimated to be down by 27% by 2026, there are simply fewer vehicles flowing back into the market,” according to Tindor.4
With fewer cars available through auctions and lease returns, dealers are increasingly turning to consumers. But sourcing from consumers isn’t just a shift in strategy, as Tindor explains, it’s an opportunity.
Tools Dealers Can Use for ICO Follow-Up Activation
Effective ICO follow-up begins with having the right foundational tools in place. These capabilities are essential for any dealership looking to flex those muscles and confidently follow up with expired offers. With these tools, dealers can ensure they’re staying engaged with consumers and maximizing every opportunity to acquire quality inventory.
CRM Email Journeys
- Automated Drip Campaigns: Set up time-based email sequences that trigger when an ICO expires.
- Personalized Messaging: Use dynamic fields to include vehicle details, offer amount, and expiration date.
- Behavior-Based Triggers: Re-engage customers who opened previous emails but didn’t act.
SMS/Text Campaigns
- Quick, direct follow-up with high open rates.
- Include prompts to schedule an appointment.
BDC (Business Development Center) Call Scripts
- Equip BDC reps with tailored scripts to follow up on expired offers.
- Include talking points like updated market value, trade-in options, and appointment scheduling.
Kelley Blue Book’s ICO platform is helping dealers close that gap with tools designed for today’s market realities, too.
Automated Follow-Up with RE-ENGAGE
- Automatically send personalized email campaigns after an offer expires to keep your dealership top-of-mind and improve conversion rates.
Coming Soon More Motivation for Consumers…
A new set of tools to encourage and motivate consumers to visit a dealer will be launched in Q3. Post-expiration email follow-up will enable conversions beyond the expiration date—helping dealers close that 47-day gap and stay top of mind for ICO customers. ICO customers will be automatically added to email journeys that encourage them to re-submit their offer and continue the process of selling or trading-in their vehicle.
The Bottom Line
Inventory challenges aren’t going away—but they are evolving. Dealers who adapt by mastering consumer acquisition and leveraging tools like ICO will be best positioned to thrive.
Now is the time to act. Build muscle. Close the gap. And let Kelley Blue Book ICO help you source smarter.
Ready to Build Your Muscle? Reach out to our team to learn more about what’s included with your Instant Cash Offer and other exciting enhancements coming soon.
1Source: 2024 Disposal Survey
2Source: 2024 KBB ICO Transactions
3 Source: Cox Automotive Research & Intelligence
4 Source: Cox Automotive Data