An increasing number of used car dealers are taking advantage of the PDI services offered at auction due to a “time is money” approach to stock turn, claims NAMA.
Analysis carried out by the organisation suggested that stock sold in the first 30 days exceeds budget by over 25%.
A NAMA spokesman added that, once a vehicle has remained in stock for 45 days, however, budgeted profit targets are usually missed, adding: “Time really is money in this situation.”
Head of NAMA, Louise Wallis, said: “Time on stock is a vital KPI for motor retailers and pressure on margins appear to be accentuating its importance. Currently, ASE data suggests the average is stubbornly stuck at around 55 days.
“Buying stock that needs minimal preparation or which has the refurbishment undertaken in tandem with delivery from auction is enabling dealers to save the time during which stock can be delayed as it goes through refurbishment and/or ensures the stock arrives with those preparation costs already absorbed.”
Wallis added: “The sooner stock can be marketed the greater the profit opportunity.
“If a vehicle gets stuck in the preparation process, margins can quickly become eroded.
“What we are starting to see is a clear increase in dealers, across all buyer groups, happy to pay a premium for vehicles that they can market rapidly and ideally as soon as the hammer falls.”