Used: New Retail Ratio

Used: New Retail Ratio

Used Retail Units Sold ÷ New Retail Units Sold

Baseline: >1:1

Description:

This KPI is specifically for retail vehicles and excludes all fleet sales. The statistic establishes the relationship between the number of used vehicles that you retail and the number of new vehicles that you retail

This example shows that for every new vehicle that you retail, you sell 1.75 used retail vehicles. Take the time to understand what you are reading on your reports as some manufacturers show this ratio in reverse. (New:Used)

Example:

A) Used Retail Sales = 960
B) New Retail Sales = 548
C) Used:New Retail Ratio = 1.75:1 (A ÷ B)

Discussion:

It is not possible to provide an industry benchmark for this performance as it is influenced by the franchise that you operate, your overall trading strategy, the ability of the Sales Manager and the sales team.

Related Terminology:

» Motor Retail Terminology and Concepts