The number of car dealers that have more than 50 vehicles on their forecourt has risen by a third in the past 12 months, new research has revealed.
According to data from Auto Trader, the number of dealerships with large lots of cars for sale has gone from 1,367 to 1,773 in the year to September 2014. Meanwhile, the number of dealers that had fewer than 21 cars fell by 13 per cent in the same period, dropping from 5,739 to 5,088.
The figures suggest improving fortunes among dealerships, but it is important for businesses selling cars to keep a keen eye on the effect this could have on their motor trade insurance policy. If a company is storing more cars at its premises, this will need to be reflected in the level of insurance cover it has – should the value of its stock exceed that stated in its policy, the dealership could be left out of pocket should there be a bad case of theft or damage.
Reflecting on the findings, Nick King, research director at Auto Trader, commented: “We’ve seen a significant increase in the size of many of our dealer partners’ stock profiles in the last year.
“It’s a trend that we think is driven in part by an uptake in digital marketing and forecourt management tools. Greater use of intelligence and insight to drive their business forwards means dealerships can increase scale, without increasing either physical presence or headcount.”