Dealer Auction launches new profit calculator
Dealer Auction has launched a Profit Calculator to help dealers understand the financial benefits of trading vehicles digitally.
He estimates that a typical franchise dealership operating in the North of England sells c. 20 commercial vehicles each month, making an average trading profit of £140 per vehicle, are expected to generate an additional £81,118 in trading profit by switching.
A reseller with comparable trade volumes in the South of England – where operational costs are slightly higher – can expect an additional £85,487.
The calculator takes into account several factors, including labor time and operational costs, while comparing the average trading profit made through Dealer Auction with that of traditional auction channels.
Dealer Auction Market Director Kieran TeeBoon said: “Low supply and inconsistent consumer demand means profit per vehicle has never been higher. Dealerships are looking to extract every penny they can from each asset, with a greater focus on the performance of their remarketing channels.
“Many dealerships still trade their inventory of unwanted parts and excess parts through traditional channels. From start to finish, the process may include transportation to the sale destination, inspection, refurbishment, valuation, imaging, and allocation to an auction. Unsurprisingly, selling a vehicle this way takes time, which means slower returns and potentially less profit.
“With Dealer Auction, it takes an average of just 2.9 days to sell a vehicle. This means dealers can get money back into their pockets faster, overcome losses caused by depreciation and free up more space. for vehicles that will earn a higher margin at retail. Not only that, but vehicles also sell 4% more on average through our platform compared to traditional remarketing channels.