Old stock slashed to cost price still not cheap enough

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We have heard from various sources in the trade that some dealer groups may be instructing certain of their dealers to reduce older stock to SIV (stand in value, basically cost price) in what may turn out to be a vain attempt to shift old stock and generate some much needed cash.

They will be trying to liquidate ageing stock for no money simply because by leaving it and not turning it, the price only keeps going down. Where a lot of dealers go wrong however is that reducing cars to SIV is not the same as reducing prices to the reality of the market. In some cases in order to move a car on especially if it is a car that’s been in stock for 60 days plus, is an ex demo or a pre-registered example, then the retail price can be much lower than the SIV.

Dealers are reluctant to take that pain and do not want to lose money but all they are doing by not moving this stock is standing by and compounding the misery.

The saying in the game at present should be;

“Accept reality, take your medicine, wipe your mouth and move on!”

When you’ve done that try to take advantage by using the cash created to buy cheaper examples that do offer a profit opportunity.

Or go under.