Feedback from a dealer sentiment survey carried out by Mannheim shows that only 19% of car dealerships are able to get newly-sourced stock on sale within two days.
The majority (42%) of dealers get new stock on sale within 3-4 days, but 10% reported a turnaround time of nine or more days.
Of those surveyed, 85% said that time taken to complete reconditioning work is the biggest delaying factor in getting a vehicle on sale.
Philip Nothard, Customer Insight & Strategy Director for Manheim, said: “We know that margins are under pressure, with almost half (48%) of the dealers we surveyed reporting a year-on-year margin decline. These pressures, coupled with a competitive wholesale market, mean that retailers are managing costs extremely carefully. One strategy is to buy lower grade vehicles, or keep hold of part-exchange stock and recondition it before putting it on sale.”
Taking time to recondition used cars can have a hidden cost. Research from Cap HPI suggests that a standard used family hatchback like a Ford Focus can depreciate by an average of £7 per day, a hidden cost of £28 per car if it takes an average of four days to list a vehicle.
“It’s worth being aware of this hidden cost because there are ways to mitigate it,” Nothard added. “It goes without saying that a reliable reconditioning partner is a must for dealers that don’t have in-house reconditioning facilities.”
Revive! have over 20-years of experience working with car dealerships and we truly understand the challenges and opportunities within this marketplace.
In today’s competitive world it’s all about customer service and managing costs. Revive! has the experience and know how to help dealerships improve used car prep standards and boost customer loyalty without reducing margins.
Whether you need a technician on site each week for used car prep or want to increase your revenue stream by offering an added value minor paint repair service to customers, Revive! can work with you to develop the best solution for your business.
For more information on how your dealership can benefit from our solutions, call us on 0800 056 2999 or email firstname.lastname@example.org