One in five dealers missing out by not using data-driven stock strategy

A fifth of car dealers admit to not using market data on which to base their stock decisions.

According to new research by Close Brothers Motor Finance which surveyed over 130 motor dealers, 82% of motor dealers do use some form of market data to support decision-making.

Of these dealers, 68% use market data to ensure they set the right selling prices, 56% use it to verify they are purchasing stock at the correct prices, and 33% rely on it to determine which vehicles are popular in their area.

Lisa Watson, director of sales at Close Brothers Motor Finance, said: “Our latest Forecourt Foresight research demonstrates the critical role market data plays for dealers, with the vast majority relying on it to make well-informed stock decisions for their forecourts.

“External factors, including rising costs, are prompting drivers to cut back where they can, which might influence their next car purchase and shift the types of vehicles they prefer. For motor dealers, it is crucial to continue leveraging these insights to ensure they are stocking the right vehicles to meet changing demands.

“Dealers who neglect these insights risk missing out on future business and may fail to stock the vehicles in demand in their region, potentially impacting their profitability.”