Rules of the Road | ASOTU Edge Webinars

Most groups wait until a unit ages out, then ship it to a sister store and hope for a better result.

Modern Auto Group runs a tighter play. They place cars where they will win on day one, and they only move them later when data and process say it is worth it.

This ASOTU Edge Webinar digs into what that looks like in the real world with Patrick Janes of vAuto and Paul Golias, Corporate Used Vehicle Director at Modern.

Below is the field guide you can put to work this month.

The Mindset

Modern treats inventory as group property, not rooftop trophies. Stores compete, but everyone plays the same game: right car, right store, right time. Culture matters here. Managers know they will also be the receiving store tomorrow, so cooperation stays high.

Modern’s footprint:

• 16 rooftops across North Carolina

• About 800 used units on hand

• Transfers happen daily, often 5 to 6 cars per day

• Longest hop between stores is roughly 80 minutes

The Playbook

1) Place it right on intake

• HQ appraisal on misfits: If a trade does not fit the store, the desk calls Paul before booking it in. He finds the best home inside the group before it lands in the wrong pipeline.

• CPO advantage: Off-brand trades get routed to the brand that can certify. A Toyota at a Nissan store moves to a Toyota rooftop where certification lifts both price and turn.

2) Set clear move triggers

Modern does not wait for 60 or 90 days just because “that’s what we always do.” They look at:

• Market day supply for that exact trim and mileage in each store’s PMA

• Store-level needs by segment, price band, and brand

• Potential retail ask by rooftop, then back out a reasonable profit and frontline-ready costs to set the internal transfer price

If the math says another store can retail it faster and cleaner, it moves.

3) Use one pane of glass

Modern runs vAuto’s enterprise view so the group lead can see every unit, every store, and filter fast. Think of it like Stockwave logic for internal inventory:

• Off-brand at on-brand store filters

• CPO-eligible filters

• Aged inventory by market day supply

• Segment and price-band gaps by rooftop

Bonus: A “pending transfer” list gives store managers visibility for several days before month close. No surprises, and every unit gets a final chance to retail in place.

4) Price the transfer as a win-win

Modern keeps the economics simple and fair:

• Determine where it will retail and at what price

• Back out frontline-ready costs and a reasonable gross

• That becomes the interstore transfer price

• If a store took a unit in light and it is genuinely worth more elsewhere, the sending store still gets all the money the car is worth. The point is smart placement, not punishing a desk.

5) Lock down the rules of engagement

• Nothing leaves the group without the used-car director’s review. If no rooftop wants it, only then can it go outside.

• Fast response culture: When the phone rings, the group lead picks up. If a deal hinges on a trade number or a quick move, it gets handled in minutes, not days.

• Daily cadence: HQ reviews new trades, active inventory, and flagged movers every day. No backlog.

What It Fixes

• Morale torpedoes: Managers hate losing “their” units. Visibility and fair math prevent surprises and resentment.

• Aging by drift: Units do not sit at the wrong rooftop while the team “tries one more weekend.” The data calls the move.

• CPO leakage: Off-brand trades stop getting buried where they cannot be certified.

• Wholesale reflex: Internal retail gets first shot. Wholesale becomes the last resort, not the habit.

Metrics to Watch

Track these at the group and rooftop level:

• Transfer cycle time: days from trigger to frontline at the receiving store

• Turn delta: average days-to-sale before versus after transfer

• Gross integrity: front-end gross by segment before and after transfer

• CPO lift: sale rate and PVR on certified units moved to brand stores

• Internal look-to-book: percentage of misfits successfully placed in-group

• Manager satisfaction: quarterly pulse check to keep buy-in strong

Quick Checklist for Your Next Transfer

• Is this unit at the best brand and best market to retail quickly?

• Can the receiving store certify it or price to a stronger audience?

• Does the move create frontline in 72 hours or less?

• Do both rooftops agree on the same transfer math?

• Is the manager aware via the pending list, not an after-the-fact surprise?

The Takeaway

Stop using the calendar as your transfer strategy. Use fit, market, and math. Modern’s approach proves you can move fewer cars, make better placements, and protect both gross and morale. Put the process in place, give your managers line of sight, and let the data call the play.