Annual Used Sales From Stock ÷ Used Units in Stock
Baseline: > 8 times per annum
Description:
This second version of used vehicle Stock Turn is more accurate than the first for measuring the utilisation of your used vehicle stock. At first glance, version 1 seems to cover everything, that is until you realise that S.O.R. vehicles are not included within your used vehicle stock, but they are included within your sales!
The current trend of the industry is to take more S.O.R. vehicles from the manufacturers and enjoy the benefits of greater selection; smart move and long may it continue.
BUT, you cannot include the sale of these vehicles to evaluate how effective you are with the used vehicle stock that you own because you are creating a huge distortion.
Example:
A) Annual used sales from stock = 657 B) Annual used sales from S.O.R. = 288 C) Annual used sales = 945 D) Number of units in used vehicle stock = Â 90 E) Annual Stock Turn = 7.30 (A ÷ D)
Discussion:
To calculate your true used vehicle Stock Turn, you must only count those vehicles that have been sold from your stock. All sales from S.O.R. stock should be excluded from the equation.