A recent study conducted by Liquid Fleet has revealed that many car dealers are missing out on potential profits by targeting the wrong cars for their stock. The study, which analyzed data from over 500 dealerships across the country, found that a significant number of dealers are focusing on stocking popular models that may not necessarily yield the highest returns.
According to the study, dealers are often drawn to stocking cars that are in high demand among consumers, such as SUVs and trucks. While these vehicles may sell quickly, they may not always offer the best profit margins for dealers. In fact, the study found that dealers who focused on stocking less popular models, such as sedans and hatchbacks, were able to achieve higher profit margins on average.
One of the key reasons for this discrepancy is competition. Popular models tend to have more dealers vying for the same customers, leading to price wars and lower profit margins. On the other hand, less popular models may have less competition, allowing dealers to command higher prices and increase their profits.
The study also found that dealers who focused on stocking a diverse range of vehicles were able to maximize their profits. By offering a mix of popular and less popular models, dealers were able to appeal to a wider range of customers and capitalize on different market segments.
In light of these findings, the study suggests that dealers should carefully consider their stock selection strategy in order to maximize profits. By diversifying their inventory and focusing on less popular models with higher profit margins, dealers can set themselves apart from the competition and increase their bottom line.
Overall, the study by Liquid Fleet serves as a valuable reminder for car dealers to think strategically about their stock selection. By targeting the right cars for their inventory, dealers can not only improve their profitability but also better meet the needs and preferences of their customers.
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- Source: https://zephyrnet.com/dealers-miss-out-on-profitable-stock-by-targeting-wrong-cars-finds-liquid-fleet/