This KPI is specifically for used vehicles and it establishes the relationship between the number of used vehicles that you retail and the number of used vehicles that you sell to the trade.
This example below shows that for every used vehicle that you trade, you sell 1.5 retail vehicles. Take the time to understand what you are reading on your reports as some manufacturers show this ratio in reverse. (Trade: Retail)
Example:
A) Used Retail Sales = 960 B) Used Trade Sales = 640 C) Retail: Trade Ratio - 1.5:1 (A ÷ B)
Discussion:
It is not possible to provide an industry benchmark for this Key Performance Indicator as it is influenced by the franchise that you operate, your overall trading strategy and the ability of the Sales Manager.