Aged-out inventory presents a series of challenges for dealerships, primarily increasing holding costs as these vehicles continue to accumulate financing charges, insurance expenses, and depreciation risks. These costs tie up capital that could be invested elsewhere, hindering the dealership’s financial flexibility. Moreover, as these vehicles age, dealerships may be forced to resort to frequent price markdowns to attract buyers, eroding profit margins and reducing potential profitability. This cycle of aged inventory can hinder the dealership’s ability to introduce new, more desirable inventory, further impacting its competitiveness and overall profitability in the long run.