Overage stock and 45-60 Days stock turn.

[Nick M.K. 574]

I bought a red 2009 Audi TT on Monday. 

CAP Clean £6600, hammer price £5600, sold. 

The car came from a large dealer group and I assumed it was just a very clean p/x. I put the reg number in Google and found a current advert for it on Motors.co.uk for £8000 by a branch of the same national dealer group (Cambria, branch was Bury Motors). 

The Audi came with full history and just before being offered for sale it had new discs and pads all round, new service, new cambelt kit and water pump. The internal invoice by that same dealership was for over £800 and less than 2 months ago. I assume the car was for sale around 45 days then shipped to the block and sold to the first bidder with half-decent bid. 

But what was the point?? After they've done all this prep why not leave the vehicle for sale a bit longer so they make some money out of it? All they will do is get another part ex or direct-buy and spend ££££ on it. Why not leave the prepared and ready car for sale a bit longer...

What does everyone think about slightly overage stock?

[Arfur Dealy 823]

I have a CRV which has been looking at me and laughing since last August... 

Re the Audi, who knows, maybe targets needed to be met for a bonus or complete incompetence...

[Mark101 536]

Stock Finance deadline

[trade vet 702]

If there was a Cambria rep on the rostrum,the sale may have been showing a good surplus so the auctioneer has been allowed to sell it.....As for over age stock,sales managers at dealer groups can get their knuckles rapped by the bean counters.I know a trader who for years has made main dealer sales managers a hero by swapping their overage stock by inflating invoices......... I used to keep stock for months,there was always one or two.

8 minutes ago, trade vet said:

If there was a Cambria rep on the rostrum,the sale may have been showing a good surplus so the auctioneer has been allowed to sell it.....As for over age stock,sales managers at dealer groups can get their knuckles rapped by the bean counters.I know a trader who for years has made main dealer sales managers a hero by swapping their overage stock by inflating invoices......... I used to keep stock for months,there was always one or two.

Where’s M S P on this one,was he not claiming to take 4 grand out of a ninety dayer last week !

[grant8064 219]

As Mark said it has all the hallmarks of a stocking loan coming to the end of its term.

We never ship anything overage to auction. No stocking loan so no need. Much rather sit on something six months and earn £700 out of it than stick it back in the block after prep and take a £1000 loss. Always the argument that that parking space cost and vehicle capital could have been turned into five sold units in that time but we don't sell much quickly so it works for us.

[EPV 631]

I was someone who used to panic at day 45 and think about trading it out and I can see that if you are guaranteed to turn your forecourt once a month then it makes sense. I had a great conversation with Nick the OP on this thread the other day and he made that exact point that once you have paid for the prep costs it makes no sense to trade it out at a loss just to repeat the whole process with no guarantee of a quick turn.

That said I'd struggle to look at something more than 90 days, as I am the type to try different things, change the wording of the advert, refresh the photos etc. If after 3 months I cant sell it I doubt I ever will.

[BHM 994]

I didn’t think main dealers put any money into cars to sit then on their forecourt, I always thought if the p/xs wanted much more than a valet then it was off to the block.

[James01 21]

I was at a big main dealer groups used car site the other day collecting a car. They sell a lot of high end part exchanges. The sales manager was telling me that the head office dictate the prices by checking them daily against others online to make sure they are competitive and as soon as they hit 60 days they are reduced every couple of days until sold. They just sold a 911 turbo at a £18500 loss! Madness.