Vehicle depreciation: when is the right time to lower your inventory?

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Anyone who works in vehicle sales knows the reality all too well: working with a product that depreciates quickly can be a real challenge for the sales team. After all, as everyone already knows, a new car loses around 10% to 15% of its value the moment it starts driving.

Therefore, it is very important to pay attention to this vehicle rcs data lebanon to know how to adjust your stock and, mainly, to identify the most opportune moments to develop promotions and guarantee the greatest possible return on the product that will be sold at your dealership.

Want to know how to do this? Check out today's post!

Follow the depreciation table by FIPE
vehicle depreciation

FIPE (Fundação Instituto de Pesquisas Econômicas) is a private institution that aims to analyze a series of economic phenomena and assists educational institutions and insurance companies. Among its analyses and research, there are those specifically aimed at understanding the valuation and depreciation of vehicles.

The FIPE table can therefore be a powerful source for you to find out the market value of a given vehicle that you intend to resell in your store, taking into account its year and other details. It is an objective criterion that greatly helps in understanding your “stock”.

Run promotions for older vehicles
It doesn't matter what the basis for a vehicle's depreciation is: the longer it remains in your inventory, the greater its depreciation will be. To get rid of older vehicles and make room for new ones, a good tip is to run promotions for older vehicles.

By promotions, we mean not only the discounts offered for cash purchases, but also advantageous installment options for your customers. The important thing is to understand that this vehicle takes up space in your inventory and, in the long term, represents a decrease in your dealership's profit .

Read also: Documents to open a car dealership - Legal processes to start in the car sales business
Check the vehicle specifications
This is a point that can help you when purchasing goods and reselling them later. After all, you need to pay a good price so that you can offer the vehicle at an attractive price to your customers. It is by buying consciously that we can resell with high profitability.

Therefore, in addition to the mileage, opt for vehicles with a more neutral color, as these are the ones most sought after by customers. Also, be aware that popular cars suffer a much smaller depreciation than luxury cars. Finally, check if the car you are going to sell has affordable parts and low maintenance costs.