Sourcing quality stock increasingly challenging: Close Brothers

More than two thirds (68%) of dealers are finding it challenging to source the right stock at an affordable price, according to the latest Forecourt Foresight from Close Brothers Motor Finance.

Over half (53%) of dealers list a lack of availability as a key challenge to sourcing stock, which is made harder by increased competition from other independent dealers (51%) as well as large, franchised dealers (25%).

11% of dealers also attribute increased competition at auction houses as a factor in making the right stock harder to come by. Just 7% of dealers stated they do not face any challenges when buying stock.

The Forecourt Foresight research, which surveys more than 130 dealers, also revealed that almost three-quarters (74%) of dealers currently cite trade-ins as their primary source of stock. More than two-thirds (70%) look to online auctions to stock their forecourts, and three-in five (60%) purchase vehicles from private sellers.

Interestingly, 44% of dealers stated that they look for stock via other dealerships, and a third (33%) turn to digital platforms such as Auto Trader and Motorway. Only 21% of dealers now use in-person auctions to find vehicles.

Lisa Watson, director of sales at Close Brothers Motor Finance, said: “Dealers have already had to deal with a tough market over recent times, with rising costs and subdued consumer demand stemming from the cost-of-living crisis presenting a raft of challenges.