This KPI calculates the amount represented by units — new and used — that remain in inventory without rotation during a given period, valued at historical cost. It makes it possible to understand what proportion of total stock is “immobilized,” representing tied-up capital that does not generate revenue and directly affects the dealership’s liquidity.
This indicator, like all those available in Analytics, includes a deeper level where each immobilized unit can be viewed, along with the date from which it has been counted as such. The number of days after which a unit is considered immobilized is defined by each dealership.
Dashboard
Unidades
Departments
Commercial Department – Dealership at a global level
Frecuency
Monthly
Goal
Keep it low in order to free up capital, improve stock rotation, and avoid losses due to obsolescence or depreciation. A low level of immobilized stock reflects more efficient commercial and logistics management.
What happens if it is green?
It means that the dealership manages its inventory efficiently, with an offer aligned with market demand. This implies higher unit turnover, healthier cash flow, lower financing and storage costs, and a lower risk of obsolescence or depreciation.
What happens if it is red?
A large portion of capital is tied up in units that are not being sold, which affects liquidity, profitability, and operational efficiency. This generates additional costs such as insurance, maintenance, and financing interest, increases the risk of loss of value due to outdated models, and may lead to forced commercial actions such as aggressive discounts or low-profit sales.
Improvement strategies
To reduce immobilized unit stock, the dealership should boost commercial rotation through specific campaigns for older vehicles, promotions with bonuses or attractive financing, and more agile vehicle registration management. It is also key to segment customers — such as companies or producers — and offer personalized conditions that accelerate sales and prevent units from accumulating in inventory.
It is essential to manage stock with real-time information, using dashboards that show aging, sales, and the evolution of immobilized inventory. Constant coordination with the manufacturer and an incentive system for the sales team help maintain a healthy inventory structure, free up capital, and improve the business’s overall liquidity and profitability.
Relationship with other indicators
This indicator is related to sales volume and vehicle registrations, since a higher level of sales helps reduce immobilized stock. It also influences inventory turnover, working capital, and business profitability by determining which portion of assets is generating revenue. In addition, it impacts operating cash flow, since immobile stock represents tied-up money, and average profit per transaction, by influencing the costs and discounts applied to free up units.