The verdict in three sentences
For a multi-brand dealership in the Greater Toronto Area selling 450 used vehicles a year with a 9-bay service shop, the OEM-backed DMS remains essential for new cars, accounting and warranty, but it handles the used-car flow from trade-in to reconditioning to listing poorly. A custom tool at CAD 37,000 to 66,000 (about EUR 25,000 to 45,000) built for that flow targets 45 days in stock instead of 75. With a holding cost of CAD 35 per vehicle per day, each day saved is worth CAD 15,750 a year.
OEM DMS and used-car tool: who does what
The DMS required or recommended by the manufacturer handles new-car orders, parts, service billing, warranty and accounting. For used cars, it is often just an inventory record. The steps that burn days (trade-in appraisal, reconditioning estimate, waiting for parts, photos, listing) live in spreadsheets or on a whiteboard.
| Function | OEM DMS | Custom used-car tool |
|---|---|---|
| Cost | CAD 2,200 to 4,400 per month | CAD 37,000 to 66,000, then CAD 600 to 1,200 per month |
| Trade-in appraisal | External book value, manual entry | Book value, local sales history, estimated recon cost |
| Reconditioning tracking | Service repair order | Stage board with duration and owner |
| Shop priority, used cars vs customers | None | 9-bay schedule with reserved recon slots |
| Photos and listing | Basic export to marketplaces | Guided photo shoot, multi-site publishing |
| Aging stock alert | Monthly report | Alerts at 30, 45 and 60 days with suggested action |
| Integration | Native | API or export with the DMS |
The 75 days of stock, broken down
Used-vehicle days in stock break into measurable stages. The initial audit almost always shows that the sale itself is not the problem: it is the first 25 to 35 days, between intake and going live online.
| Stage | Current average | Target with the tool | Lever |
|---|---|---|---|
| Intake and inspection | 4 days | 1 day | Mobile appraisal, same-day inspection |
| Waiting for the shop | 12 days | 4 days | Recon slots reserved on 2 bays |
| Repairs and parts | 10 days | 6 days | Parts ordered at inspection |
| Detailing and photos | 6 days | 2 days | Detailer schedule, guided photos |
| Listing to sale | 43 days | 32 days | Price adjusted to aging and market |
| Total | 75 days | 45 days |
The real cost of a day in stock
The CAD 35 per vehicle per day covers floorplan financing (around 6 to 7% in 2026), depreciation, insurance and lot space. On a used car bought for CAD 24,000, 30 fewer days of holding means CAD 1,050 of preserved margin. That is often more than the net margin on the sale itself.
Mini case study
David runs a multi-brand dealership in Vaughan, north of Toronto. He sells 450 used vehicles a year, with an average stock of 92 cars at 75 days. Targeting 45 days, average stock falls to about 55 vehicles. Holding cost savings reach 450 x 30 days x CAD 35 = CAD 472,500 a year. With a cautious assumption of only 15 days saved in year one, savings still reach CAD 236,250. With a tool at CAD 56,000 and CAD 900 monthly maintenance, the project pays back in under 3 months. David can also hand back part of his floorplan line.
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FAQ
Do we have to change our DMS?
No. The used-car tool connects to the existing DMS through API or scheduled export, and integration takes 2 to 4 weeks depending on the vendor.
How long until go-live?
Plan 12 to 16 weeks, including a 4-week pilot on one rooftop's used-car intake.
Does it handle multiple rooftops?
Yes, with consolidated stock and inter-store transfers. Add about CAD 7,500 to 12,000 per extra rooftop for configuration.
Do listings go to the major marketplaces?
Yes, to the main Canadian listing sites through their import feeds, with price updates live within 15 minutes of a change.
What do we measure after 6 months?
Days in stock per stage, gross per used vehicle after recon, and turnover across the 9 bays, with a weekly dashboard.
Let's scope your project. Send us your annual used volume, DMS and current days in stock: we will price a trade-in and reconditioning tool between CAD 37,000 and 66,000, delivered in 12 to 16 weeks. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
