9:44 am, August 3, 2018
ACQUIRING the right stock is the biggest commercial challenge faced by used car dealers.
That’s according to automotive auction company Manheim, which conducts a monthly survey that receives an average of 240 responses.
The latest survey revealed that 38 per cent of dealers say that stock acquisition has been and will continue to be their main challenge for 2018.
Margin squeezes are a growing concern as well, with 25 per cent of dealers saying that achieving a credible margin is their main concern for the next six months, while 17 per cent ranked it has their priority for the first half of the year.
Brexit was also an issue, with 17 per cent rating it as their number one challenge for the remainder of the year and 13 per cent for the first half of 2018.
Meanwhile, 13 per cent said the demonisation of diesel would be their main challenge for the next six months.
At the other end of the scale, dealers are not worried about reducing days to sell, with a mere four per cent highlighting it as their main challenge for the rest of the year and none identifying it for the first half.
Manheim’s Philip Nothard commented: ‘The insight that acquiring stock is the number one commercial challenge for dealers correlates with the rising importance of a used car offer. We’ve seen a concerted shift by many dealer groups in recent months to expand their used car capability as the market continues to shift away from new car sales, increasing competition in the sector.
‘Concerns the pipeline of quality vehicles will be strangled as the large fleet and lease firms assess the implications of WLTP and adjust their defleet strategies accordingly will also no doubt be playing a part.
‘Looking beyond stock, it’s interesting that reducing days to sell is not cited as a primary issue but no surprise that achieving a credible margin, Brexit and the demonisation of diesel are growing concerns.’
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