Used-Car Fundamentals Revisited: Todd Caputo’s Playbook for Dealers
The used-car business is never easy. Margins are tight, sourcing is tough and competition shows no mercy. But according to industry veteran Todd Caputo, success doesn’t hinge on size—it hinges on execution.
With decades in retail and used-car operations behind him, Caputo offers blunt advice: “Good processes + good people = good business.” He lives that formula, and he believes every dealer—large or small—must commit to it.
Execution Wins When the Market Bites
Caputo has studied the business across multiple models: independent used only, new-car franchises, and public groups. Regardless of size, he says, complacency is the silent killer.
In a 2024 interview right here on The Dealer Playbook he warned: “If you’re not thinking about where your business is vulnerable, you’re already behind.” That vulnerability takes many forms—stale marketing, outdated sales processes, recon delays, or sourcing blind spots.
It is no longer good enough to simply have a big brand, a huge lot or hundreds of vehicles. The dealers who win are the ones who still sweat the fundamentals better than everyone else.
The New Rules of Used-Car Trade
Caputo recently published a deep dive titled “The Art of the Flip: Why Used Car Turn Rules No Longer Apply.” He argues the old mantra—“turn inventory in 30-45 days, wholesale by 60 or else”—no longer holds when supply is disrupted and replacement vehicles are scarce.
Here’s what Caputo says has changed:
Fewer off-lease returns and slower trade-ins mean fewer high-quality used cars.
Dealers must pay more to get vehicles.
Instead of speed, the focus shifts to profitability and precision in every unit.
In his words:
“Forget fast. Focus on smart.”
That means buying vehicles with purpose, reconditioning with discipline and merchandising with intention.
Sourcing Cars from Consumers Gets Real
Caputo is also unafraid to challenge conventional thinking around trade-in and acquisition strategies. In his blog post “I could buy more cars if…” he lists multiple actionable ideas—everything from QR codes on staff business cards to “we buy cars” campaigns on social media.
He explains:
“When you are buying used cars … make sure your appraisal process is correct.”
Caputo emphasizes that sourcing from the consumer is now a battlefield. Dealers who prioritize it with consistent campaigns, clear branding and strong process are the ones who thrive.
What Dealers Should Do Tomorrow
Caputo’s playbook is straightforward but far from easy:
Buy right: Know the replacement cost, know the buyer profile, don’t overpay.
Recondition efficiently: Clean, correct and merchandise vehicles so they retail at higher margins.
Merchandise aggressively: Use digital listings, strong imagery and transparency.
Price it right: First-price matters more than ever—there’s little room for “mistakes.”
Turn it before it ages: But also know when a car still has value even if it sits longer.
The market may be volatile, but the principles haven’t changed. As Caputo puts it:
“Good processes + good people = good business.”
Conclusion
If your dealership is weighed down by size, complacency or outdated plays, the next few years could be unforgiving. But if you lean into Caputo’s advice—process-driven, people-focused, execution-obsessed—you’re putting yourself in the right posture for strong performance.
Because in the used-car business, what you do matters more than how big you are.
