£28 Million in Hidden Profits?
The used car market has experienced a turbulent time over the last few years. Where many people look to batten down the hatches and stick to a tried-and-true strategy, we believe the market holds hidden profit opportunities particularly for highly retail rated stock. Almost £28m worth to be exact… ¹ With used car prices rising every day, you could be missing out on getting even more from each vehicle by not pricing to the live market.
What’s happening with the used car market?
Since the start of the year we have seen unprecedented growth in used car prices. This sudden growth means that highly retail rated vehicles² that are not re-priced little and often could be at risk of being under-priced against competitor stock. Meaning you could be missing out on hidden profit opportunities across your forecourt. As seen in this month’s retail price index the average retail value for a vehicle is £17,556³ which marks the 39th consecutive month of growth with the average price of a used car increasing by over £3900 in the last year³. Failing to keep up with the live market could mean that you are missing out on potential profit. Supply and demand difficulties have led to used car prices increasing significantly however this has brought about sourcing issues for many retailers. These issues further indicate that now more than ever, it is important to unlock these hidden profit opportunities in the highly retail rated vehicles across your forecourt.
Top 10 used car price growths compared to last year.
Opportunities in the market
This rapid and unexpected increase in the value of highly retail rated stock creates profit potential across your forecourt. We know every forecourt is different and pricing strategies vary between retailers, but re-pricing your vehicles little and often and keeping in line with the live market could be the key to capitalizing on the recent growth in market prices and getting ahead of your competitors.
How our tools can support you?
With access to market trends, and real-time pricing information our data and insight tools can support you to make faster and more informed decisions. By using tools such as Retail Check, Vehicle Insight and Market Insight you can accurately assess the market value of your vehicles based on make, model, age, mileage, condition, and location. This data driven approach helps you to set competitive and fair prices for your vehicles, attracting potential buyers, and increasing the likelihood of a successful sale all while unlocking potential profit opportunities in each vehicle.
Additionally, Retail Rating provides valuable insights into the demand and popularity of specific vehicles, allowing you to identify lucrative market niches and adjust inventory accordingly. By leveraging our tools and data, you can make informed pricing decisions, minimising the risk of under or overpricing vehicles, helping you to unlock hidden profits and stay ahead of the competition.
What next?
By making use of our data and insight tools in this rapidly changing market, you have the opportunity capture more profit from your vehicles and make better sourcing decisions. Tools such as Retail Check and Market Insight can help you to find the right vehicles for your forecourt. While our trusted valuations help you to make better pricing decisions and reduce the risk of under-pricing, meaning you can unlock hidden profits across your forecourt.
Sources:
1: Auto Trader Internal data based on Retail Valuations vs listed price of vehicles with a retail rating of 61 or above.
2: Vehicles with a retail rating of 61 or above.
3: June 2023 RPI Report: https://plc.autotrader.co.uk/news-views/press-releases/retail-price-index-june-2023/
DISCLAIMER: The information provided is not intended to be used as a sole basis for any business decisions and should always be considered alongside other factors in the market. If you have any questions or would like help with your pricing, please contact your Account Manager.