Dealer stock turn satisfaction points to encouraging signs for sector
Three-quarters of dealers are satisfied with their current stock turn as the signs of a positive start to 2019 continue
When asked the question 'are you satisfied at the speed at which you can convert the used vehicles you buy into a sale?', an overwhelming 74% confirmed they were happy with their average days to sell being between 30 and 60 days.
However, 11% of those with average days to sell of 30-60 days report being dissatisfied with this performance and wanting to take measures to reduce their stock turn.
One in ten dealers declared a stock turn of under 30 days – bucking the industry trends reported by automotive experts such as ASE Global, who recently revealed a stock turn for franchised dealers of 58 days.
Just 6% of respondents say their average days to sell is over 60 days. However, a third of these say they are unhappy with this situation and feel their stock should be turning more quickly.
Liam Quegan, NextGear Capital’s Managing Director comments: "This is a valuable insight into how dealers are feeling right now, and it echoes the encouraging tone we've found in the sentiment surveys we’ve run over the last few months. I think it paints a picture of a generally organised and proactive sector with dealers who understand their business, product and customer very well.
"Used car sales are performing against respected industry averages and it’s a strong performance indicator that suggests dealers are confidently capitalising on the opportunities currently afforded to them by the market.
"It’s also encouraging to see that those tracking below the average are aware of their position and are taking action where they feel appropriate and that a tenth of those performing well have an appetite to improve further.
"Those hungry to shift stock even more quickly have options to realise this ambition and stand to gain by increasing their overall volume, even if the per-unit margin is sacrificed."