Time is very much of the essence in the used car sector as record wholesale stock prices and the heightened competition of online retail applies plenty of unwelcome pressure on dealer margins.
The chairman of the Vehicle Remarketing Association (VRA), Glenn Sturley, recently said the price of stock had risen to such an extent that many retailers were now wholly reliant on F&I sales to achieve a profit margin.
The situation has also sparked a race to buy vehicles of lesser condition that might not previously have been considered, he said, stating: “The compromise they are making is to buy vehicles in poorer condition and then invest in making them suitable for their forecourts.”
Simon Allan, group used car manager at Cambria Automobiles, said: “At Cambria, we say there really isn’t any profit in a used car after 28 days. The pressure is on from the moment stock is bought and an efficient pre-delivery inspection (PDI) process is vital.”
Cambria Automobiles (LON:CAMB) was established in 2006 and has built a balanced portfolio of high luxury, premium and volume car dealerships, comprising over 40 franchises representing major brands across the UK. The Group’s businesses are autonomous and trade under local brand names, including County Motor Works, Dees, Doves, Grange, Invicta, Motorparks and Pure Triumph.