Used cars stock cycles, retention times

[davyk31]

Are there any general rules in terms of how long a dealer would keep a car in stock before reducing prices or eventually selling to trade or auction. I am thinking that within schemes like the BMW approved used car scheme there may be general principles as to how long they would keep a car on their forecourts. I am looking at some used X5 models that are obviously slow movers now. Would not want to buy just before they were considering reducing the price as it was hitting say 60 or 90 days or even miss a car as they were putting it out for auction for a low cost.

Any of you guys in the trade offer any insight.

Also always wondered what the salesman commission is on car sales, is there a general % or is it a % of the profit on the deal? Does it wary depending on what makes of car you are selling?

[Oli]

Usually about three months, but in the current climate, going in to buy an X5, you can name your price, because they just do not want to hang onto models like this!

[Booster]

Cars aren't going to auction as much as they used to do when they reach 90/120 days. Auction values are seriously low and even the traders that they would shift them on to aren't buying so it is not uncommon to see cars 150/200 days old on forecourts. Several dealers we work with have cars that are priced to sell at £4k+ below what they owe the dealer as they have dropped their prices over the months. They still aren't shifting and if they put them in auction they would realise nothing.

[durtydurty]

We never used to have a stocking policy on our cars and I remember one car being over 240 days in stock! we managed to get rid in the end I think.

We now have a 60 day stocking policy and some stock will lose hardly any when we move it on ( circa 150 - 300 quid ) other more lumpy stuff loses alot alot more.

With some cars dropping huge sums in the guides and 5 or so cars being traded for large losses the balance sheet at the end of some month makes for interesting reading!

[davyk31]

Completely agree that anyone with an X5 in stock should be made keen to sell but I have emailed some dealers who have not even replied and spoke to another with an X5 in stock since July and they seemed like they couldn't be bothered trying to sell it to me. Another I spoke to was very Keen, they named their price to change, I suggested halfing it which they would meet and I feel that now a week or so since first contact I could probably get it for less but its not the exact spec I want and miles a bit high.

[Gareth]

A lot of under performing main franchise dealers are sending every part exchange to auction, even those that they would normally retail.

Those dealerships just want any more stock they might get stuck with. A consequence of that is that the part exchange values are even lower and deals don't get done at all.

In reply to the question about stocking times that will vary from dealer to dealer and there is no industry standard here.