Insights from a post-panel conversation with leaders from #1 Cochran and ACV
After a standing-room-only panel at a Used Car Week 2025, ACV’s John Coles and #1 Cochran’s Danny Papakalos stepped aside to continue discussing a theme that resonated strongly with the room: the growing urgency around used-car acquisition. The panel covered many operational topics, but one message deserved even more emphasis once the session ended.
Acquisition is not just another part of the strategy. It is the strategy.
You Cannot Sell From an Empty Shelf
When asked what dealers should be focused on right now, the answer was direct. The ability to acquire inventory is the most important capability a dealership can build. The post-COVID production deficit, which removed millions of vehicles from the market, continues to affect both supply and competitive behavior. Vehicles reaching wholesale often come with hidden issues, yet stores keep bidding heavily because choices are limited.
The surprising part is that many dealerships overlook their most profitable and reliable source of inventory: their own customer base. Service drive guests, local owners, and past buyers often represent higher margin opportunities than anything purchased at auction. These vehicles tend to have clearer histories, lower acquisition costs, and stronger profit potential.
The Advantage of Consumer Vehicle Acquisition
One insight that stood out is the impact of acquiring cars directly from customers. Vehicles sourced this way often outperform those from wholesale lanes. They come with better service documentation, stronger retail margins, and far fewer surprises during reconditioning.
There is also the added advantage of what was described as the “two for one” outcome. Roughly 70 percent of customers who sell their car to the dealership end up purchasing another one.
This single action can strengthen both the used-car and new-car departments. It also creates long-term service retention, which compounds value over several years. Consumer acquisition brings in better cars, stronger grosses, more retail transactions, and recurring revenue streams.
From 30 Cars a Year to Nearly 500 in 75 Days
During the conversation, Mr. Coles asked about a statistic mentioned earlier that caught the attention of many in the audience. Last year, the dealership group acquired around 30 consumer vehicles from non-traditional sources. After adopting the ClearCar acquisition process, results shifted dramatically.
In just two and a half months, the dealership acquired just under 500 vehicles. This happened even though the team is still learning the tool and has not yet applied it at full capacity. The early success was described as “organic,” because processes are still being formed.
Even with that, the results have been remarkable:
- Higher PVR than other acquisition channels
- Faster turn times, roughly six days quicker
- Significant increase in volume
- High conversion from sellers to retail buyers
- Long-term service retention opportunities
“You cannot make this stuff up,” was the reaction to the speed and profitability of the new acquisition channel. The store is obtaining more cars, selling them faster, earning more on each, and keeping more customers in the pipeline.
A Process That Strengthens Every Department
Acquisition does not end with the initial transaction. When customers sell their vehicle to the dealership and then purchase another one, they typically return to the service department for the next two years. This creates long-term value that wholesale sourcing never provides.
What began as a used-car strategy quickly supports new-car sales, F&I opportunities, parts and service retention, and future trade-ins. For many stores, this is the missing link that stabilizes their entire operation.
A Vision for the Future: One Unified Tool
Toward the end of the discussion, Mr. Papakalos shared a vision for where acquisition tools need to evolve. He described an ideal end-to-end system that could handle appraisal, recon estimating, pricing, merchandising, and text generation, all within one workflow.
Managers face tremendous pressure when acquiring vehicles. Many fear making costly mistakes. A system that removes those concerns would give them greater consistency and confidence, allowing them to focus more on retailing vehicles and leading their teams.
A stronger process leads to stronger managers. Stronger managers lead to better results.
Acquisition Is the Strategy That Wins
The message coming out of the conversation was clear: dealerships that make consumer-driven acquisition the centerpiece of their operations today will be the ones who lead the market tomorrow. The shift from incremental gains to scalable growth is already underway for stores willing to modernize how they source inventory. Tools like ClearCar make it easier to acquire vehicles directly from consumers, while platforms like ACV MAX help dealers manage, price, and retail that inventory more efficiently once it’s in-house. Inventory acquisition is no longer a supporting tactic, it is the foundation of dealership success.
