Use your dealership's own inputs.
Change any field below. The model updates automatically in your browser.
Use your own finance team's holding-cost assumption when available. The default $40/day is only an example starting point based on an NCM estimate reported by WardsAuto.
Formula: monthly units x max(current T2L - target T2L, 0) x daily holding cost. This does not include depreciation assumptions, floorplan structure, gross, turn-rate effects, staffing, repair costs, or sales outcomes.
Benchmark context: WardsAuto reported an NCM Associates estimate of roughly $40 in daily per-vehicle holding cost in a 2019 article. Your actual cost can be materially different, so the calculator is intentionally editable. See the WardsAuto source.
What does the calculator actually measure?
The model is deliberately simple. It measures the difference between current and target recon days, multiplies that difference by monthly unit volume, and then applies a daily holding-cost assumption.
If 60 vehicles per month each spend four more days in recon than the target, that represents 240 vehicle-days per month before applying any dollar assumption.
That vehicle-day number is often the cleaner operational metric because it does not depend on a debated dollar estimate. A store can track whether it is reducing the amount of inventory time consumed before vehicles reach the frontline.
How to use the result
- Use actual monthly used-vehicle recon volume rather than total lot inventory.
- Calculate current T2L from consistent start and completion events.
- Choose a target your operation can use for improvement planning.
- Ask finance for the holding-cost assumption your store uses rather than relying on a generic benchmark.
- Track actual stage dwell so the team knows which process change could remove the targeted days.