Stats show dealers ‘missing out’
Nearly one-third of stock at dealerships across the country remains underpriced and businesses risk losing out on $2,105 in profit margin per unit, according to Apexdealerdata.com.
The AI-driven decision engine’s latest figures show 31 per cent of stock nationwide was categorised as underpriced last week.
Such models were taking an average of 52 days to sell, while those priced on-market based on the platform’s data only took 50 days. Vehicles that fell into the overpriced category took an average of 62 days.
Apexdealerdata.com calculates figures for “on-market pricing” of models – the best price to get the fastest return and most value for a car – and those either underpriced or overpriced.
Last week’s numbers also show 5,446 used cars were sold, down from 5,758 in the week prior, with an average seven sales per dealership.
Matt Grant, chief executive, says there are many instances of trades showing how dealers are missing out on profits by “pricing stock wrong”.
He highlights two recent deals for 2021 models of the Mazda CX-5 GSX AWD, with both having about 50,000km on the clock.
“Example one sold in 75 days and was listed at $37,995 – holding costs and advertising costs would be around $2000 over 60 days,” explains Grant. “Example two sold in four days listed at $36,500.”
Grant also notes comparisons between two models of the 2017 Toyota C-HR Spec G, pictured, that had covered about 90,000km.
One unit sold in six days after being listed at $26,995, with holding costs and advertising costs also likely to be around $2,000 over 60 days, he says.
“Example two sold in 54 days listed at $24,500, so this dealer not only missed out on $2500 in margin but it would have cost them $1,500-plus in holding costs – that's $4,000 they have missed out on in one car,” adds Grant.
“With the average dealership selling seven cars last week, if two of those cars were priced like that then there is $8,000 a dealer would have missed out on in one week.”
The Apexdealerdata.com market report appears every Monday on Autofile Online.
For more details, visit www.apexdealerdata.com.
