8:28 am, July 23, 2023
More and more independent car dealers are turning to stock funding to give them the edge in bidding for quality used vehicles.
That’s according to V12 Vehicle Finance, which says a rise in promotions is causing competition at auction houses to rise.
V12 is reporting a 109 per cent annual growth in stock funding revenue, a 17 per cent rise in dealers with access to its stock funding product and a 27 per cent increase in the number of dealers active in using the product.
Many auction houses have brought in promotions to try to combat the knock-on effects of the cost-of-living crisis, it said.
As well as the rise in vehicle prices driven by a lack of supply, independent dealers are also under pressure to manage rising overheads and growing infrastructure demand such as installing forecourt EV chargers – both of which are squeezing cashflow for many.
V12 said that having previously been wrongly seen as a product exclusively for cash-poor dealers, it was seeing a growing interest in stock funding from car dealers who were simply looking to act quickly after finding quality stock or those looking to free up cash for other business investments.
Managing director Julian Hartley said: ‘We’re seeing a shift in the perception of stock funding among independent dealers, with many now viewing it as a product that can really help them to compete in what is a fiercely competitive market right now.
‘We’d urge more independent dealers to open their minds to stock funding as much more than just a loan for the cash-poor but as a vital growth accelerator for ambitious businesses wanting to thrive.’
Meanwhile, data released by V12 has also revealed that Jaguar tops the list of fastest-selling brands on stocking plans.
Over the past six months, the following manufacturers have stood out for stock being sold within the first 30 days of funding:
- Jaguar – 45% of volume sold within 30 days of being on a stocking plan
- Vauxhall – 38%
- Mini – 38%
- Volkswagen – 36%
- Peugeot – 32%
- Land Rover – 31%
- Seat – 31%
- Citroen – 30%
- Nissan – 30%
- Ford – 30%
Among the most popular models are the Jaguar R-Sport, Vauxhall Corsa, Volkswagen Caddy C20 Highline, Mini Countryman and Peugeot 5008 Allure.
