How to buy the right vehicles in a low-supply market
The past few years have been nothing short of a rollercoaster ride for independent and franchised dealers.
Rarely has the automotive industry seen a time like this – when sourcing good quality stock has been so challenging. A slump in new car production, caused by the pandemic and other issues, has made the task difficult as the number of available used vehicles has been negatively impacted.
However, you can still find quality used stock with a NextGear Capital Stocking Plan. It gives you a huge amount of freedom to fill your forecourt how you choose. With this in mind, let us share some practical tips and concrete advice on how to find the right vehicles for your business.
Use our Auction Finder
The amount of quality used stock may have diminished slightly, but knowing where to look will unquestionably give you the upper hand.
Our Auction Finder locates your nearest NextGear Capital partnered auction from a wide range of locations throughout the UK. Using the locator, you can pinpoint sales as close as 10 miles away or view nationwide. Simply pop in your postcode and this handy tool will give you the information you need, including reasons to buy from a particular sales event, when and where it’s happening and how to register to buy from an auction using your Stocking Plan.
Click here for more details.
Narrow your online searches
Quality used stock becomes available on many auction websites on a minute-by-minute basis, and many of these sites include filters to help narrow your search. Typically, you can speed up your hunt by amending mileage, make, model and fuel type details. Be specific when visiting these sites and using this function. Additionally, always compare prices on other trade sites. As is the case with any online purchase, be it consumer or trade, it’s wise to do thorough research.
Be alert - literally
Certain digital platforms can assist your search for quality used stock. Wholesale marketplace Dealer Auction offers stock alerts that can instantly notify you when vehicles meeting your criteria are listed. With auctions closing every few minutes and “buy it now” stock up for grabs 24/7, Dealer Auction and similar platforms, including SmartAuction, ACV Auctions and CarsDirect, are an extra weapon in your armoury to uncover profitable stock. Be prepared to act quickly though; the fact is there are many dealers who are just as eager as you to fill their forecourt.
The fact that many sellers are having difficulty getting hold of preferred stock means some are opting for vehicles different to what they sought when used market supply was ‘normal’. It therefore pays to be flexible and vary your stock search.
Knowing what’s popular in your area, in terms of make, model and mileage, can give you a competitive edge. Again, there’s a range of digital marketplaces available online providing valuable insights. They provide helpful data that help you to make more informed decisions. Another good place to look is the Cox Automotive Content Hub which is home to lots of commentary, facts, figures and forecasts about the used market.
And remember, you can load trade vehicles onto your NextGear Capital Stocking Plan regardless of whether they come from an auction or not. Use that to your advantage and you stand a much better chance of ensuring your business will be in a stronger position going forward.
Trusted by 1,700+ dealers
NextGear Capital Stocking Plans are tailored for the specific needs of used vehicle dealers. As a customer, you’ll work with an experienced team who understand your business and determine a facility that’s appropriate.
Why not book an appointment with your local Account Manager and find out how we can help you grow your business and maximise profits or learn more information about the benefits of wholesale stock funding here.