As an independent dealer, you’re constantly managing inventory, cash flow and customer expectations — all while the market keeps changing. To help you stay ahead, here are some of the top things independent auto dealers should know in 2026 so you can make confident decisions and keep your lot competitive this year.
1. Rethink Your Inventory Strategy — Salvage Can Help Fill the Gaps
Finding affordable, good quality used vehicles is still one of the biggest challenges for dealers. That’s why more independent dealers are taking a closer look at salvage auto auctions as part of their inventory mix.
Salvage vehicles may be a good fit for your dealership if:
- You work with a reliable recon shop that can turn repairs quickly.
- You know your numbers — total cost, recon time and expected margin.
- Your customers are open to rebuilt vehicles when the price is fair, and the history is clear.
Using salvage strategically can help you:
- Access lower-cost inventory when clean-title units are pricey.
- Keep your lot full without overpaying.
- Stand out with price-friendly options for value-focused buyers.
Going into 2026, adding salvage strategically — not all the time, just when it makes sense — can help you stay competitive in a tight market.
2. Use Your Floorplan Wisely to Protect Cash and Move Faster
Your floorplan is one of the most powerful tools you have — especially when cash is tight and inventory moves fast. When used correctly, dealer floorplan financing can help you acquire more vehicles, keep your cash available and stay flexible.
Here’s what to focus on in 2026:
- Use your floorplan for opportunities. If a good deal pops up at auction, your floorplan can allow you to move quickly without tying up your cash.
- Keep cash free for what really matters — reconditioning, payroll, marketing and daily operations.
- Match your floorplan to your inventory strategy. Salvage units may take longer to repair, so choose terms that fit your turn times.
Dealers who manage their floorplan well can experience better cash flow, stronger buying power and fewer surprises.
3. Stay Flexible — The Market Will Keep Changing
If there’s one thing to expect in 2026, it’s change. Inventory levels, interest rates, customer demand and auction prices will continue to shift.
The dealers who stay flexible are most likely to be the ones who win this year. Flexibility means:
- Trying new inventory sources — including online auctions and salvage.
- Using financing tools that support your cash flow and turn times.
- Watching your numbers closely: recon time, total cost and days to sell.
- Moving fast when the market shifts, instead of waiting it out.
Flexibility isn’t just helpful — it’s essential. Staying open to new strategies will help you keep your lot profitable no matter what the market brings.
Steering Toward Success in 2026
As you head into 2026, remember that your success starts with a few key moves: choosing the right inventory, using your floorplan to keep cash in your pocket and staying ready to shift when the market does. If you stay focused, stay flexible and stay open to new opportunities, you’ll put your dealership in a strong position to win this year.
* Disclaimer: Descriptions of AFC floorplans are for illustrative purposes only. Terms of AFC floorplan financing are subject to a final written agreement acceptable with AFC. AFC does not guarantee any results for floorplan financing and examples are for illustrative purposes only. Dealers should consult their own advisors to make independent business decisions regarding floorplan financing. “AFC” refers to Automotive Finance Corporation, Automotive Finance Canada Inc., and AFC Cal, LLC in their respective jurisdictions
