Three quarters of the dealers are satisfied with their current stock turn according to research by NextGear Capital.
When posed the question “are you satisfied at the speed at which you can convert the used vehicles you buy into a sale?”, 74% confirmed that they were happy with their average days to sell being between 30 and 60 days.
11% of those with average days to sell of 30 to 60 days report being dissatisfied with this performance, and wanted to take measures to reduce their stock turn.
One in ten dealers declared a stock turn of under 30.
Just 6% of respondents said 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 per-unit margin is sacrificed.”