"Dealerships face a complex market environment in 2025, where consumer demand remains solid but supply constraints persist. Motor Finance Online reports that whilst franchised dealers increased stock levels by 5% and car supermarkets by 11% compared to early 2024, vehicles are remaining on forecourts longer, with average days to sell rising from 30 to 35 days year-on-year. The shortage of three-to-five-year-old vehicles remains particularly acute, with research noting that this segment has declined by 37% since 2019 and is expected to decrease further in 2025. This scarcity makes strategic sourcing essential for maintaining inventory flow and meeting customer demand."
"Successful dealerships are diversifying their sourcing strategies beyond traditional OEM deliveries. Trade-ins continue to be the most reliable source, providing vehicles without additional sourcing effort whilst offering customers seamless transaction experiences. Lease returns are also excellent opportunities, typically featuring low mileage and good maintenance records after 2-4 year agreements. Fleet and rental returns, whilst often higher mileage, provide access to newer models with well-documented service histories. Private acquisitions and direct purchases offer additional inventory streams, particularly valuable in today's constrained market environment."
Consumer demand remains solid in 2025 while supply constraints persist, causing average days to sell to rise from 30 to 35 year-on-year. Franchised dealers increased stock levels by 5% and car supermarkets by 11% compared to early 2024. The supply of three-to-five-year-old vehicles has declined by 37% since 2019 and is expected to fall further, heightening scarcity. Dealerships must diversify sourcing through trade-ins, lease returns, fleet and rental returns, and private acquisitions to maintain flows. Digital tools such as live bidding feeds and online auctions, including 'buy it now' and timed options, enable faster vehicle acquisition and improved replenishment agility.
Read at London Business News | Londonlovesbusiness.com
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