The key question is no longer whether dealers should focus on used stock, but how they can consistently sell high volumes in a constrained and competitive market. In the United States (US), the answer typically comes down to two connected disciplines: retailing used vehicles exceptionally well and maintaining a reliable pipeline of inventory.

Recent insights from the Automotive News Top 100 dealership groups for used vehicle sales in 2025 point to a clear pattern. While the largest dealer groups predictably dominate total volume, the more instructive story sits beneath the headline numbers: an increasing number of small and mid-sized groups are outperforming expectations by putting used vehicles at the centre of their strategy.

One standout example recorded a used-to-new sales ratio of 2.42 to 1, well above the long-standing industry norm of roughly one used vehicle sold for every new one. Results like this are rarely accidental. They reflect a deliberate focus on two things: acquiring the right stock consistently and retailing it with discipline.

Sourcing, in particular, has become one of the defining challenges for modern dealerships. Traditional channels such as trade-ins are no longer sufficient on their own, especially as new vehicle supply fluctuates.

High-performing dealerships are therefore diversifying how they acquire vehicles. Many are investing in direct-to-consumer buying programmes, encouraging customers to sell vehicles outright rather than only through trade-ins.

Others are turning service departments into acquisition hubs, identifying opportunities to buy well-maintained vehicles from existing customers. Local marketing, digital valuation tools, and rapid appraisal processes often support this shift.

But sourcing is only half the equation. The ability to retail used vehicles effectively is just as critical. Today’s buyers are informed, price-sensitive, and increasingly digital-first. Leading retailers respond by elevating standards across the board: vehicles are reconditioned to a high level, supported by transparent histories, and priced using strategies aligned with live market data.

Digital presentation plays a central role. High-quality imagery, detailed descriptions, and accurate pricing are no longer optional, they are essential to building trust and driving enquiries. In parallel, sales teams are being trained to position used vehicles not as second-best alternatives, but as smart buying decisions that offer strong value without compromising on quality.

Consumer demand is reinforcing this shift. With affordability front of mind, many buyers are actively seeking nearly new or certified used vehicles. Dealerships that can meet this demand with consistency and professionalism are seeing gains in both volume and margin.

Ultimately, the golden thread across the most successful US dealerships is clarity of focus. They treat used vehicle operations as a core business function, not a side-stream.

That said, the outlook for South Africa is meaningfully different. According to the National Automobile Dealers’ Association (NADA), the principle that top-performing dealerships excel in used vehicle sales and inventory sourcing is clearly visible in the US, where the used-to-new ratio remains above 2 to 1, but South Africa’s economic and operating conditions make a direct comparison difficult.

A strong pre-owned focus still matters locally, but South African dealerships operate in a more constrained environment, particularly when it comes to finance conversion. In the US, finance approval rates for vehicle buyers frequently exceed 90%. In South Africa, approval rates are far lower, typically between 20% and 60%, which means dealers often have to work significantly harder to secure funding under strict affordability criteria.

Market structure also differs. The used-to-new ratio in South Africa has narrowed to around 2.9, down from highs of roughly 3.8. This reflects both a shift toward more affordable new models and continued constraints in the pre-owned supply pipeline.

And because the local market operates at a smaller scale overall, South African dealerships cannot rely on a single lever for profitability. In practice, sustainability often depends on multiple departments performing well at the same time.

As a result, successful South African dealerships tend to prioritise the entire business ecosystem rather than depending primarily on high pre-owned volume.

That means maximising profitability across sales, service, F&I and parts, while delivering a premium, consistent customer experience that drives repeat purchases and strengthens after-sales retention, which remains a critical metric for long-term performance.