Every Parts Manager knows the feeling… Walking past shelves stacked with parts that haven’t been touched in months.
Right now, that pile of obsolete parts is draining your dealership’s profits every single day. But here’s the deal: most obsolete and aging parts aren’t a lost cause. With the right habits and tools, you can finally take control of it once and for all.
Why this problem is bigger than you think
Obsolescence is one of the biggest hidden costs in a dealership. According to industry benchmarks:
- The average dealership carries $50,000–$88,000 in obsolete inventory.
- Carrying costs (storage, insurance, taxes) can add another 18–50% per year.
- The industry standard is 10% obsolescence, but best practice is under 3%.
That means a parts department sitting on $1 million in inventory could be bleeding $100,000 in dead stock.
Anthony Blubello, a former Parts Manager and now an online part sales consultant, put it bluntly:
And the problem compounds over time. As new parts arrive, old parts get buried deeper. By the time annual inventory season rolls around, many parts managers are stuck writing off thousands in stock they’ll never move.
Here’s the optimistic flip side: Dealers who keep obsolescence below 3% consistently outperform their peers in profitability and customer satisfaction.
Staying ahead of obsolescence year-round
Too many dealerships treat obsolescence as a once-a-year problem. They wait until annual inventory season, then scramble to reconcile, return, or write off dead stock. That approach guarantees pain.
Anthony explained why perpetual discipline is the key:
Here’s a framework for keeping obsolescence low all year long.
Daily habits
- Run quick DMS checks. Pull aging reports and flag parts hitting the six-month mark.
- Verify every special order. Always VIN-match and require prepayment to prevent abandoned parts.
- Spot-check bins. Compare physical stock against your system to keep accuracy tight.
Weekly practices
- Check high-dollar SKUs. Big-ticket parts sitting idle create the fastest cash drain.
- Audit replenishment orders. Automatic Order Replenishment (AOR) systems can over-order if left unchecked.
- Follow up on open special orders. Call or email customers with pending pickups.
Monthly reset
- Full aging report review. Look at 6-, 9-, and 12-month aging buckets. Decide what to discount, bundle, or return before deadlines pass.
- Cycle counts. Break your inventory into sections and count a portion every month. This prevents the “inventory panic” at year-end.
- Adjust pricing rules. Use cost-plus for newer parts, then move to cost-minus discounts on stock approaching a year old. Anthony explained how this works in practice:
Instant Download: Part’s Manager’s Obsolescence Checklist
The ultimate obsolescence solution: selling parts online
Even with perfect discipline, every parts department ends up with some aging inventory. But here’s where modern Parts Managers separate themselves: by selling online.
Dealers who sell parts online average $360K annually in eCommerce revenue. And they don’t just make money; they cut obsolescence dramatically. In fact, dealers see a 20% drop in dead stock within a few months of selling online.
Why? Because local demand isn’t enough to clear aged inventory. But nationwide, discontinued or niche parts have buyers.
Anthony explained how smart dealers use online pricing rules to maximize sales:
Benefits of selling online to fight obsolescence
- Expanded market reach: Your aged parts can find buyers anywhere in the U.S. and even internationally.
- Faster turnover: Online listings are live 24/7, so sales happen while your team sleeps.
- Automated pricing: Dynamic rules keep you competitive without manual updates.
- Multiple sales channels: eBay, Amazon, and your own dealership webstore multiply your chances of selling slow-moving stock.
Anthony shared a cautionary tale too:
Win the fight once and for all
Obsolescence is the silent profit killer in parts departments. Left unchecked, it drains tens of thousands each year in lost cash flow and carrying costs. But it doesn’t have to be that way.
With proactive daily, weekly, and monthly habits, you can keep inventory clean year-round. And by leveraging eCommerce, you can turn dead stock into revenue while preventing future obsolescence.
As Anthony put it:
Now is the time to take control of your inventory—and finally win the fight against obsolescence once and for all.
Want to see how leading dealers keep obsolescence below 3%? Book a 15-minute demo of RevolutionParts today.
Stop Losing Money to Obsolete Inventory
See how top Parts Managers are cutting obsolescence below 3% and turning dead stock into real revenue.
