More than two thirds (68%) of dealers are finding it challenging to source the right stock at an affordable price, according to the latest Forecourt Foresight from Close Brothers Motor Finance.
Over half (53%) of dealers list a lack of availability as a key challenge to sourcing stock, which is made harder by increased competition from other independent dealers (51%) as well as large, franchised dealers (25%).
11% of dealers also attribute increased competition at auction houses as a factor in making the right stock harder to come by. Just 7% of dealers stated they do not face any challenges when buying stock.
The Forecourt Foresight research, which surveys more than 130 dealers, also revealed that almost three-quarters (74%) of dealers currently cite trade-ins as their primary source of stock. More than two-thirds (70%) look to online auctions to stock their forecourts, and three-in five (60%) purchase vehicles from private sellers.
Interestingly, 44% of dealers stated that they look for stock via other dealerships, and a third (33%) turn to digital platforms such as Auto Trader and Motorway. Only 21% of dealers now use in-person auctions to find vehicles.
Lisa Watson, director of sales at Close Brothers Motor Finance, said: “Dealers have already had to deal with a tough market over recent times, with rising costs and subdued consumer demand stemming from the cost-of-living crisis presenting a raft of challenges.
The UK’s leading event for motor retailers – Wednesday November 13, 2024.
Automotive Management Live 2024 welcomes motor retail managers from across the UK to discover business improvements, to understand best practice and to network with fellow dealers and suppliers.
Topics this year will include agency business models, the brands now entering the UK new car market, used car stock management and more. It’s free to attend, but you’ll need to register.
Venue: NEC, Birmingham
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AM deputy editor Aimée Turner has been a specialist B2B editor and journalist covering the international transportation sector for more than 20 years.
She has specialised in the significant safety, regulatory, and environmental issues that impact advanced technology businesses in the pursuit of more efficient, safer and sustainable transportation modes.
