According to a survey from Nextgear Capital, dealerships are now deploying a proper multi-channel strategy for stock acquisition as a result of the pandemic. The survey shows that around two-fifths of dealers polled have used digital-only auctions more in the last 12 months, with 44% report having bought more stock direct from consumers than they did pre-pandemic.
Add into the equation fleet and manufacturer direct channels, it seems that most dealers plan to continue this diverse approach to stock sourcing.
Nextgear Capital puts all this down to the pandemic and the affect it has had on dealers’ behaviour when seeking to keep their forecourts stocked up.
The MD of Nextgear Capital, Liam Quegan, said: “With physical auctions closed, the mass migration to digital channels was inevitable, but it’s interesting to see that dealers have turned to a variety of channels aside from the auction platforms in order to find stock during the last year.
“The question has always been what will happen when the traditional lanes reopen and whether the new behaviours established on the back of Covid-19 will hold true, and I think this snapshot indicates change is long-term for a significant proportion of dealers.
“For dealers, the increase in choice is a good thing but it does come with some administrative burden, particularly around how best to finance stock purchases. Independents in particular need to be careful their arrangements are flexible enough to cope with this new multichannel norm. Those reliant on captive funding may struggle to be agile enough to compete effectively in what promises to be a heated market.”