THERE ARE ONLY CIRCA 45 DAYS TO REALISE A NET PROFIT FROM A USED CAR SALE
Used Car margin decreases as vehicle ages in stock –
for example
Day 1 £1,800
Day 15 £1,500
Day 30 £1,200
Day 45 £900
Assume a daily cost of stock of £20
Day 45 Margin – £900 – Day 45 Cost of Stock £900 – Net Profit – Nil
Higher value vehicles may generate more margin but will also have a higher daily cost due to the higher amount of capital employed – so the principle is still correct.
Calculating your daily cost of stock will reveal how many days you really have to sell it profitably
Drive45 does so much more – get in touch to find out how to drive profit into your used car operation
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