Pricing key to ‘more profit’

Vehicle sales bounced back for dealers last week with 5,758 used cars sold, which was up from just 2,512 in the week before, according to the latest figures from Apexdealerdata.com.

The platform shows the average number of sales per dealership also increased to 14 units but 22 per cent of stock was still classed as underpriced by an average of $2,225.

The AI-driven decision engine delivers figures for “on-market pricing” – the best price to get the fastest return and most value for a car – and those either underpriced or overpriced.

Matt Grant, chief executive of Apexdealerdata.com, says two models provide examples of how dealers are missing out by incorrectly pricing stock.

Firstly the 2014 Toyota Aqua S, pictured. He explains 175 of these units, with mileage ranging up to 150,000km, sold last week.

“The lower-priced cars took 31 days on average to sell, with a sale price of $11,732,” adds Grant.

“The on-market cars took 15 days on average to sell and got an average $13,474 for each car. The higher priced cars took 32 days to sell with an average of $13,829, which when you take the holding costs out you are better to price it right in the first place.”

He continues that pricing the vehicles on-market and thereby getting a quicker sale can also save dealers when it comes to advertising costs.

Grant also outlines how 142 versions of the 2021 Mitsubishi Outlander LS sold last week, with the lower-priced cars taking 51 days on average to sell with a price of $28,992.

“The on-market cars took 26 days on average to sell and got an average $30,197, while the higher-priced cars took 55 days to sell with an average of $30,895.

“Again, close to a 50 per cent reduction in holding costs and advertising costs and having over $2,000 more profit if you priced it right.”

The Apexdealerdata.com market report appears every Monday on Autofile Online.

For more details, visit www.apexdealerdata.com.