How long do dealers keep used cars on sale before they panic
Discussion
I've been looking around Autotrader as I'm interested in buying a Hyundai Ioniq 5N next year when 'hopefully' the prices drop into my budget.
I've been using the Chrome plugin that lets you see price drops etc, and I'm amazed at the number of times prices are dropped (especially expensive EVs) and how long some of them are up for sale. Some makes/models have been up for sale for over a year with a total price drops of over 20k.
Which makes me question, how long do dealers like to keep a vehicle around before they start to panic? I saw something that said 60-90 days, but how accurate is that?
I've been using the Chrome plugin that lets you see price drops etc, and I'm amazed at the number of times prices are dropped (especially expensive EVs) and how long some of them are up for sale. Some makes/models have been up for sale for over a year with a total price drops of over 20k.
Which makes me question, how long do dealers like to keep a vehicle around before they start to panic? I saw something that said 60-90 days, but how accurate is that?
TheBinarySheep said:
I've been looking around Autotrader as I'm interested in buying a Hyundai Ioniq 5N next year when 'hopefully' the prices drop into my budget.
I've been using the Chrome plugin that lets you see price drops etc, and I'm amazed at the number of times prices are dropped (especially expensive EVs) and how long some of them are up for sale. Some makes/models have been up for sale for over a year with a total price drops of over 20k.
Which makes me question, how long do dealers like to keep a vehicle around before they start to panic? I saw something that said 60-90 days, but how accurate is that?
I don’t think dealers ever panic, just reduce prices in the market place as the internet makes prices so much more transparent. I've been using the Chrome plugin that lets you see price drops etc, and I'm amazed at the number of times prices are dropped (especially expensive EVs) and how long some of them are up for sale. Some makes/models have been up for sale for over a year with a total price drops of over 20k.
Which makes me question, how long do dealers like to keep a vehicle around before they start to panic? I saw something that said 60-90 days, but how accurate is that?
I used to review stock after 28days. If a price reduction didn't work in the next 28days if was off to auction. Some dealers pay high trade-in prices which means they get lumbered and the forecourt starts looking stale.
It is a situation where you need to be hard nosed and a reason to only 'stock' desireable motors.
It is a situation where you need to be hard nosed and a reason to only 'stock' desireable motors.
I think I'd worry if a car sold too quick. I'd always be thinking "here's what you could have won" and missed out on a speedboat, or whatever.
The trick is to understand the market BEFORE a car is even purchased for resale, not to try and work out what the market is doing during its sale.
The trick is to understand the market BEFORE a car is even purchased for resale, not to try and work out what the market is doing during its sale.
It’s a proper “it depends” question.
What are the dealer’s overheads on premises and staff? Do they use stocking finance or fund the purchase out of their own funds? Are they part of a group with a fixed policy on retention? Are they using the car as a convenient runaround? Do they rely on a low margin high turnover model?
Too many variables to give general advice IMO.
What are the dealer’s overheads on premises and staff? Do they use stocking finance or fund the purchase out of their own funds? Are they part of a group with a fixed policy on retention? Are they using the car as a convenient runaround? Do they rely on a low margin high turnover model?
Too many variables to give general advice IMO.
charltjr said:
It s a proper it depends question.
What are the dealer s overheads on premises and staff? Do they use stocking finance or fund the purchase out of their own funds? Are they part of a group with a fixed policy on retention? Are they using the car as a convenient runaround? Do they rely on a low margin high turnover model?
Too many variables to give general advice IMO.
Herein lies your answer. There are too many variables. What are the dealer s overheads on premises and staff? Do they use stocking finance or fund the purchase out of their own funds? Are they part of a group with a fixed policy on retention? Are they using the car as a convenient runaround? Do they rely on a low margin high turnover model?
Too many variables to give general advice IMO.
I worked across many dealerships in my heyday (before growing up and getting a real job) and it comes down to the terms of the stocking finance. At Land Rover, we’d be given a kick up the harris once it’d been in stock 59 days - get it sold - and we’d be rewarded handsomely as it was going overage, yet at 89 days it’s going to get brutal as it’s drops off the stocking plan in the morning and comes out of the franchisees pocket big style…
Yet at Honda, provided we put so many ‘retail deals’ through them a month and were doing our bit, then stocking finance was endless…
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