Lotlinx's Randy Kobat Explains the Future of Inventory Health

Randy Kobat, Chief Commercial Officer at Lotlinx, joins us on Inside Automotive to discuss why dealerships need a more proactive approach to inventory management and how earlier intervention can help protect margins.

Drawing on findings from the latest Lotlinx 2026 Inventory Health Survey, Kobat explains why many dealers fail to identify struggling vehicles until it's too late, limiting their options and reducing profitability. He outlines the importance of monitoring inventory health at the VIN level instead of relying solely on aging reports, and discusses how AI is helping dealerships spot risks sooner by analyzing pricing, demand, merchandising, and shopper behavior. Kobat also explores why stronger collaboration between inventory, marketing, and sales teams is essential, and why marketing dollars should be allocated based on each vehicle’s unique needs rather than spread evenly across the lot.

Key discussion points:

•  Why identifying inventory risk within the first 15 days is critical 
•  The difference between inventory aging and inventory health 
•  How VIN-level insights improve pricing and merchandising decisions 
•  Why inventory, marketing, and sales teams need better alignment 
•  How AI helps dealers detect inventory risks before margins erode 
•  Smarter ways to allocate marketing spend across vehicle inventory

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Transcript

Welcome And A 9% Wake Up Call

SPEAKER_01 0:07

Welcome to Inside Automotive with Jim Fitzpatrick.

Jim Fitzpatrick 0:11

Only 9% of dealerships can identify a struggling vehicle within the first 15 days, according to LotLinks' 2026 Inventory Health Survey. Joining us now is Randy Kovat, who is the Chief Commercial Officer at LotLinks to break down the survey and what dealers can do differently. Thank you so much, Randy, for joining us on the show once again.

SPEAKER_01 0:32

Great to see you again, Jim.

Jim Fitzpatrick 0:33

Yes, you you as well. And uh wow, I guess dealers are just not aware of the problems some cars in inventory are having, right? Which can be a problem in and of itself.

SPEAKER_01 0:44

Yeah, that's very true. You know, we presented this survey to more than 2,000 U.S. dealerships and we received back about a 10% response, over 200 completed responses from dealers across the country. Um I I think the biggest takeaway is that dealers usually recognize inventory risk after it's already become really expensive for them. Yes. Uh as you mentioned, only 9% told us they identified at-risk inventory within the first 15 days, and nearly two-thirds take between 15 and 45 days to recognize that risk. Wow. And that

Why Risk Shows Up Too Late

SPEAKER_01 1:22

really matters because as we all know, the longer a vehicle sits, that's right, fewer options the dealer has to protect gross.

Jim Fitzpatrick 1:28

Yeah. Boy, there's no question about it. So the survey introduces the concept of inventory health. What is what does that mean?

SPEAKER_01 1:36

Inventory health from our perspective is really knowing which

Defining True Inventory Health

SPEAKER_01 1:40

individual vehicle needs attention and understanding why and taking action before uh turn and margin are lost. You know, traditionally dealers have managed aged inventory before after it became a problem. So inventory health is really more proactive. It looks at age for sure, but it also brings together local demand, shopper demand, competitive position in the marketplace, pricing, merchandising, and actual shopper activity. So the dealer can identify risk early and choose the right action while there are still a lot more options available

Why VIN Level Visibility Wins

SPEAKER_01 2:18

to them.

Jim Fitzpatrick 2:18

Gotcha. Why is VIN level visibility becoming so important?

SPEAKER_01 2:23

You know, dealers don't make or lose money on averages. Um they're they're making or losing it one vehicle at a time. Um, even two real similar similar vehicles can make very different acquisition uh uh decisions, right? The acquisition costs can be very different. Um, broad inventory metrics can make your overall inventory portfolio look healthy, but when you look at uh look at it at the individual VIN level, they could be more risky, some more than others. So that VIN level visibility shows dealers which vehicles need attention, which ones don't, and where action can protect your margin.

Jim Fitzpatrick 3:04

Yeah.

The Hidden Cost Of Team Silos

Jim Fitzpatrick 3:05

The research uh suggests that dealerships are still operating in silos. Why is that such a challenge?

SPEAKER_01 3:12

You know, inventory performance really crosses several different departments, and each department is offering often seeing a very different part of the picture. Uh the inventory team is certainly seeing age and pricing. Yeah. The marketing team sees spend and traffic and sales sees leads and maybe shopper activity. Yeah. Without a shared VIN level view or VIN level strategy, the teams together can't make decisions. Uh, even the decisions that they are making today might work against one another. Yeah. Our survey found that only 12% of dealerships say inventory, marketing, and sales are highly aligned in these actions. And by the time everyone recognizes the same problem and agrees on an action, the vehicle might already be 30 days old.

Jim Fitzpatrick 4:03

Yep. Yep. That that is a real problem. There's no question about it. How should dealers think differently about inventory

Treating Each Car As An Asset

Jim Fitzpatrick 4:10

today?

SPEAKER_01 4:11

Dealers should really think of every vehicle as both a product to sell and a financial asset that's going to carry risk over time. Yeah. Our survey found that only 14% primarily view inventory that way. Every day a vehicle sits, capital remains tied up, carrying costs continue to increase, and the dealer has fewer and fewer options to protect margin. The conversation should really shift from how much inventory do we have or what's already age to which bins are developing risk today and what should we do about it.

Jim Fitzpatrick 4:46

Yeah, for sure. It's like Dale Pollack said that it getting a car today is like putting you buying a big block of ice and putting it on your lot every day. It's it's just melting away, right? Exactly. So true.

SPEAKER_01 4:59

Well, what's interesting about the market today is that block of ice melts at different rates. Yeah, that's true. And you really need to understand which one is melting as if it's on the Sahara Desert and which one's melting as it's in Juneau, Alaska, and January.

Jim Fitzpatrick 5:12

Yeah, very good point. How should dealers

Marketing Based On VIN Need

Jim Fitzpatrick 5:15

approach marketing today with this in mind?

SPEAKER_01 5:18

Marketing really should follow the inventory strategy that the dealer lays out. Today, many dealers just spread their marketing budget evenly, like peanut butter, across every vehicle on the lot. Um, but every VIN has a different need. Um, some vehicles already have sufficient shopper activity and need very little additional support. That's right. Others may need targeted demand generation immediately, and some have pricing and merchandising problems that really marketing alone isn't gonna fix. Right. So, really, the first step is diagnosing which VIN needs uh it and then directing marketing dollars where they can make the greatest financial difference. And that's really the concept behind inventory health.

Jim Fitzpatrick 6:02

Yeah. Now, Lotlinks, you guys have been uh working with AI and pushing it out there and talking to dealers about this for years, for maybe 10 years or so. Uh I remember doing shows on it, and uh uh we had, you know, you guys had a campaign about uh what the you know what you

Where AI Fits In Daily Decisions

Jim Fitzpatrick 6:20

can learn from the machines. And uh so what role does AI and technology play in improving inventory health today?

SPEAKER_01 6:27

Yeah, AI certainly is very true to the core of the essence of what Lotlinks is. Um and what we've seen is AI can evaluate more signals across every VIN than a dealership team could continuously monitor on its own, including age and price, competitive supply, local demand, shopper activity, and even the marketing support that you've already had you already put on it. It can identify developing risk earlier and explain what's driving it and then prioritize where attention is needed. The dealer is still making the decisions, but AI helps them make it faster and with better information.

Jim Fitzpatrick 7:10

Yeah, it's it's amazing. Um, what opportunities do dealers have during

Second Half 2026 Dealer Opportunity

Jim Fitzpatrick 7:15

the second half of 2026 in this area?

SPEAKER_01 7:18

Yeah, the biggest opportunity is to really focus in on what dealers can control, and that's how quickly and precisely they respond to the inventory risk that they have. Sure. Um during the second half of the year, dealers can move from reviewing aged inventory reports, which quite frankly is the score at the end of the game, to identifying risk earlier, creating one shared VIN level view across inventory sales and marketing, and connecting it at every at-risk vehicle for a clear action plan and really shortening the time between the first warning signal and taking action uh while they have more opportunities to protect turn and margin.

Jim Fitzpatrick 8:01

Sure. Now you work with dealers all over the country, like literally Lot Links works with thousands of dealers all over North America. But so with that in mind, if you could leave the dealers with one piece of advice uh today, Randy, what would it be?

One Rule To Protect Margin

SPEAKER_01 8:15

I guess I would say don't wait until a vehicle's become aged to decide that it is a problem. Um really start looking within the first few weeks for signs that each VIN has either demand or a strong competitive position, the right merchandising and shopper activity needed to sell it within the window that you're trying to turn your inventory at. Yeah. The earlier you identify that risk, the more options you have to correct it without sacrificing margin. Yeah, no question.

Jim Fitzpatrick 8:45

Randy Cobat, Chief Commercial Officer at LotLinks. Thank you so much for stopping by CBT News. I know that our dealer viewer uh viewers will get a lot out of your visit with

Final Thoughts And Thanks

Jim Fitzpatrick 8:55

us, so thanks so much.

SPEAKER_01 8:56

Thanks, Jim. I appreciate it. Thanks.