How Colorado Hyundai Dealer Navigated Inventory Challenges with Data-Driven Strategy
What do you do when the vehicle that drives half your sales simply isn’t available anymore?
This was the question facing a Colorado Hyundai dealer when their inventory of Ionic 5—the electric crossover that had become their sales cornerstone—suddenly dried up. As part of a larger dealer group with locations in Colorado and Missouri, they needed a solution fast, or risk watching their market position erode while waiting for vehicles that weren’t yet coming.
The Challenge: Missing the Market’s Most Wanted Vehicle
Like many dealers, this dealership had established a reliable sales pattern with certain models driving consistent performance. The Ionic 5, Hyundai’s electric crossover SUV, was the “bread and butter” for dealerships in their market, with demand consistently outpacing supply.
Data from MarketAI showed that the Ionic 5 wasn’t just popular—it was moving at an impressive 100% turn rate. From November 2024 to February 2025, the Denver market moved over 1,100 units. However, by February 2025, Hyundai wasn’t sending enough Ionic 5 models to meet demand.
This inventory shortage created a significant challenge: How could this dealership maintain strong sales performance without their most in-demand model?
The Solution: A Data-Driven Approach to Inventory and Marketing
After listening to the dealer’s concerns, their dedicated Digital Strategist brought a holistic strategy with four key components to the client. They implemented a multi-faceted approach based on real-time market intelligence and consumer behavior analysis.
Strategic Inventory Analysis
Using MarketAI’s inventory insights and consumer behavior data, our team identified which models the market wanted beyond the Ionic 5. The data revealed opportunities to focus on the Kona, Palisade, and Santa Cruz models and helped the dealership make informed decisions about which vehicles to order and prioritize.
Rather than simply accepting whatever inventory was available, they used market data to guide their ordering strategy. Each data-driven decision ensured they were focusing on securing the right vehicles that matched market demand—an approach that would prove crucial to their continued success.
VINScore-Informed Marketing Allocation
Not all inventory requires the same marketing support. Using VINScore data, we were able to identify which models needed additional visibility and which were already in high demand.
For example, while the limited Ionic 5 inventory showed an average VINScore of 78 (indicating strong market demand), the Palisade showed an even more impressive 97. This data helped guide budget allocation decisions, ensuring marketing dollars were spent where they would have the greatest impact.
Search Campaign Optimization
With inventory in flux, standard “set it and forget it” campaign structures wouldn’t suffice. The team adjusted model-specific campaigns based on market demand data, pulling certain models out of general campaigns to create focused efforts where needed.
When the Ionic 5 began returning to inventory, our team quickly adjusted the strategy to put marketing pressure back on this model, particularly as competition intensified with one competitor adding approximately 200 units to their inventory.
Competitive Analysis and Website Optimization
Using MarketAI’s market share analysis, we identified competitors who were outperforming in specific models. This discovery uncovered additional opportunities for the dealership’s website. We ensured all available incentives were properly displayed on VDPs, including Federal EV tax credits and Colorado-specific EV credits to help attract potential customers.
The Results: Maintaining Momentum Despite Inventory Challenges
The data-driven approach to diversifying inventory beyond the Ioniq 5 yielded great results:
- Santa Cruz: Achieved a 37% turn rate, outperforming the market’s 25% turn rate by 12 percentage points, while improving 18% from the previous quarter
- Kona: Delivered a 27% turn rate, beating the market’s 20% turn rate by 7 percentage points, demonstrating strong consumer response to focused marketing efforts
- Palisade: Maintained competitive performance with a 21% turn rate, staying right in line with the market’s 22% while improving 4% from Q4 2024
Key Takeaways for Dealers
This Hyundai dealer’s experience offers valuable lessons for dealers facing similar inventory challenges:
- Use data to inform inventory decisions. Understanding what the market wants allows you to prioritize ordering the right vehicles, not just what’s available.
- Adapt marketing strategies to inventory realities. When your most popular model isn’t available, you need to strategically shift focus to other models with strong market potential.
- Monitor competitor activity. Insights from competitive analysis can reveal opportunities to gain market share.
- Maximize incentive visibility. Ensure your website clearly displays all applicable incentives, credits, and special offers to attract price-conscious shoppers.
- Partner with a marketing agency that understands automotive retail. Having experts who can translate market data into actionable strategies makes all the difference during challenging periods.
As a certified provider for Hyundai dealers, Adpearance’s MarketAI technology provides the real-time insights needed to make informed decisions about inventory, marketing, and competitive positioning. By understanding what the market wants and how your inventory compares, you can optimize your approach to drive sales and maximize profitability in any market condition.
Ready to see how real-time market intelligence can transform your dealership’s performance? Request a demo of MarketAI and discover how data can drive your success.
37%
Turn Rate for Santa Cruz compared to 25% Market Turn Rate
27%
Turn Rate for Dona compared to 20% Market Turn Rate
4%
Increase in Palisade Turn Rate compared to Q4 2024