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Cap HPI urges dealers to keep a close eye on stock turn

Philip Nothard

Cap HPI is urging dealers keep a careful eye on stock turn as its research shows the gap between the price advertised and sale price achieved doubles over a 12 week period.

Analysis of sales data fed into Cap shows the average transactional difference in the first week a vehicle is advertised is 3.8%, and this rises to 6.4% by week 12.

Philip Nothard, retail and consumer specialist at Cap HPI, said: “With concerns over a more volatile market it is important to make stocking decisions that keep your retail offer flexible. The research shows that sourcing the right vehicle, at the right price for the market, pays dividends.

“The data highlights the importance of understanding your brand, where you sit in the local market, what  to sell and when.”

A survey of dealers by cap hpi showed that 48% claimed retained margins were worse in July than June, while only 19% said they had improved. Nothard argues that making the correct stocking decisions for local conditions is key to maximising margins.

The study showed that different pricing and stocking strategies are required for different vehicle marques.

Nothard said: “The price sensitivity over time was not always related to volumes available in the market.

“Premium executive stock showed good price resilience, along with niche marques like Abarth. It is important to use the most up to date and accurate data when making stocking decisions.”

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