Dealers combining instinct with valuation tools to identify the best stock
Two-thirds of dealers are relying on a mix of business instincts and valuation tools to ensure they source the right stock at the right price, according to the latest NextGear Capital survey results.
Those dealers surveyed that are combining instinct with a variety of valuation tools are doing so in order to help gain a ‘clearer picture’ on pricing.
The most popular valuation guide is Auto Trader with eight out of ten dealers surveyed ranking the platform highest amongst those tools most regularly used.
Just over two-thirds of dealer said they used company data or trusted valuation guides such as Cap HPI or Glass to inform their pricing decisions.
Competitor websites and trade to trade online platforms scored lowest of the valuation tools used by dealers in the survey.
Pam Halliday, NextGear Capital Sales and Marketing Director, comments: "It is encouraging to see dealers using a mix of valuation tools to complement their business instincts when determining stock sourcing and pricing decisions.
"While dealers know their own businesses better than anyone else, relying solely on instinct to be profitable is a risky strategy. The majority of dealers surveyed understand this and are using established tools such as Auto Trader and other valuation guides to gain the clearest possible picture when pricing and buying stock.
"By taking this approach, dealers can obtain valuable insight into the vehicle price, trends and supply that will enable them to source the best possible stock at the best possible price.
"It is also interesting to see how trade to trade online platforms are scoring low on the list of valuation tools used. This is not unsurprising given their relative infancy in the market and we expect to see increased uptake as they become more familiar with such platforms.
"Overall, dealers using data-led strategies, including valuation tools, to understand both the market and their own business are most successful in generating maximum profitability."