SMA has introduced Buy Back to help car dealers limit the risk of over-aged stock.
For a one-off fee, Buy Back enables dealers to return stock to SMA between 45 and 50 calendar days of the date of sale for a 95% refund of the vehicle purchase price or 95% of CAP Clean (whichever is lower).
ASE data suggests that the average time a used car is on stock is 55 days. According to CAP; as soon as they hit 45 days stock will typically fail to hit budget, with cars reducing in value by £5.95 every day. That fall rises to £6.58 a day at 60 days, and £7.82 at 90 days.
SMA national operations director Eddie Thomson (pictured) said: “If time is the enemy of used car profit, it’s time to minimise the risk. We have introduced Buy Back to help dealers. Interestingly, it is helping dealers to be bolder in their buying and more prudent in their stock management.”
The majority of stock offered by SMA qualifies for the initiative.
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