Chris Barrett, managing director of vAutoStock, explains why it’s so necessary that sellers deal with turning over inventory rapidly

In keeping with the most recent 2024 outlook from the SMMT, the brand new automotive market is estimated to whole general quantity of 1.974 million items. The primary month of the yr noticed 142,876 new automobiles registered, an uplift of 10,882 items on January 2023, one of the best efficiency for the month since 2020 and the 18th consecutive month of development.

The rise was pushed completely by the fleet market, which rose by 29.9%, whereas non-public retail uptake fell -15.8%. Fleets accounted for greater than six in 10 (63.2%) new automobiles registered, up from simply over half (52.7%) final yr.  What we are able to’t predict is that if these are brief cycle fleet registrations that can return rapidly to the used automobile market.

With new automotive volumes returning with elevated RRPs, increased used automobile costs are right here to remain. What has additionally returned is the month-to-month ebook drop we are actually seeing. This will price sellers as a lot as 3% a month, which is a big quantity for some quantity websites.

It’s so necessary that sellers deal with turning over inventory rapidly, which is at the moment sitting at 31 days, on common. Most sellers are restricted on the variety of hours obtainable to them for mechanical and bodywork, so it is very important have a deal with on preparation. 

On common, there’s a delay of two days earlier than a automobile is booked in for any work. Delays are sometimes attributable to ready for elements that would have been pre-ordered, or a automobile being held in a single a part of a preparation course of while one other individual/division might be engaged on it.

Sellers can scale back the common pace to on-line considerably with the fitting processes in place. For instance, some sellers have reported a drop from 11 days to 6 and examine in and appraisal all the way down to 48 hrs from when a automobile lands. Having extra inventory to drive away the identical day, can undoubtedly enhance cashflow.

Under are some ideas for sellers trying to enhance their pace to market by way of sooner preparation:

• Spend time with every individual at the moment concerned within the preparation course of. All through the automobile preparation course of – workers usually full duties they assume are both legacy, or just not required and a waste of time.
• Measure your preparation time. Set your goal preparation time and introduce ongoing monitoring. Typically sellers haven’t any measure, or the measure set, doesn’t correspond to the fact.
• Management the prices. The perfect performing companies preserve a deal with the ‘prices’ of every automobile.
• Perceive the constraints of a division. If the bodyshop is filled with inventory autos, there isn’t any level in shopping for extra that require plenty of bodywork – irrespective of the value.
• Solely promote ready automobiles. If autos are absolutely ready earlier than they’re bought, it will save time for the gross sales crew.

The vAutoStock platform can present sellers a transparent low-impact on the gross sales crew when it comes to time. 

Chris Barrett is managing director of vAutoStock