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FullAuction Achieves Stellar Profits For Sellers In 2017
Renault Trafic earns nearly 10 times asking price reveals Cooper Solutions
‘Top of the Profits’ from Cooper Solution’s FullAuction this year, is a Renault Trafic SL29 DCI 9 seater minibus. Selling for nearly 10 times its asking price, this record sale underlines the value of a well described vehicle at auction, exposed to a larger buyer base, outside the retailer’s local proximity. The latest analysis of sales activity on FullAuction, the trade-to-trade digital site from Cooper Solutions, reveals its top 10 most profitable sales.
The Renault Trafic had a Stand in Value (SIV) of just £500, whilst the winning bid closed at £5,444. The second most profitable sale on FullAuction was for a Mercedes-Benz CLK 320 Elegance Auto, achieving a profit of 133% over the SIV and 252% CAP Clean.
In third place, a Mercedes-Benz Viano Ambiente secured a sale of 69% above the SIV and a winning bid of £14,350.00, suggesting that good quality, low mileage MPVs are in demand.
Overall, the average bid for the top 10 most profitable vehicles sold on FullAuction was 143% more than the SIV, although the profit margin for the top two was exceptional. Eight out of 10 of these cars were below CAP average when bidding commenced, which could have helped catch buyers’ attention.
FullAuction boosts average £PPU and CAP performance by optimising the mix of well described stock, a pool of hundreds of validated trade buyers and low transaction costs. The result is outstanding profits for sellers. Crucially, it’s quick and easy to list, sell and deliver, helping to shift stock.
Simon Whicher, General Manager at Cooper Solutions comments, “It’s clear from these figures that if vehicles are well described and started at a price that encourages competitive bidding, once the reserve is achieved and the vehicle is effectively ‘sold’, extraordinary profits and CAP performance follow. Fortune very much favours the brave with reserve expectations!
“We’re finding that many retailers are selling their stock via FullAuction long before a physical auction house would have even collected it or turned it into cash; and with buyers paying considerably less than they would at physical auction, they are happy to bid that bit more.”
How can your dealership avoid getting stuck with over-age stock?
It’s a question dealers are faced with every day. Good retailers, whatever their industry, know that efficient stock control is crucial to success and profit. In the automotive industry especially, there are so many factors that can have an adverse effect on profit potential where stock that isn’t being actively managed is harder to sell and worth less.
There are four steps to ensuring the right margin is achieved:
Appraise and buy well;
Prep fast;
Price competitively;
Maximise sales opportunities
We can help you move through these steps quickly allowing you to achieve consistent profitability with your retail car sales.
Want to find out how you can increase your stock turn, volume and retail profitability? Call us or email us to ask how FullControl can work for you.