Search the Community

Hi guys, First post here and full disclosure, am not a dealer, but have been looking to dip my toes into creating a software product for dealers. I've been working on the space for 9 months, I have some experience in retail businesses but not the motor trade, so I would really value your thoughts as potential customers down the line - I don't currently have anything to sell. My question is this: I consistently hear about issues with over-stocking and surplus inventory etc. I know that isn't every dealership, especially the smaller and more nimble independents, but I'm wondering how big an issue this really is. If you don't sell a car for 30 (60, 90?) days, do you write off the cost of the time that car has spent sitting on your forecourt? ie depreciation, stock funding costs, forecourt costs etc? Or do you just write it off as a general cost of business? Other than marking down the car, do you do anything about it? Obviously you try to avoid it, but what do you do with the lemon(s) you can't shift? Straight to auction? Is this a big deal? Thanks guys, really appreciate any thoughts, Cheers