Planning a Car Sales with Mileage

Planning sales of cars with mileage - was and remains an important stage in determining the feasibility of creating a business structure.
To calculate the sales of cars with mileage at your dealer, you need to calculate:
1. Own sales potential from new cars.
2. The potential of the regional market.

Own potential.
To calculate your own potential, you need to use data on cars designed as test and swing, a plan for selling new cars and a plan for buying cars (buy-out from the client, purchase of corporate parks, buy back).
All these figures are available to you.

Variant of calculation:

This year, 15 cars will leave the test drive and the substitute park.
Plan of sales of new cars 500 per year.
Determine how much you want to sell new cars on the system trade-in. Keep in mind that 10% or less is the percentage of customers who are ready to turn in the car. The best in Russia reach the figure of 50%, and in the European market - 90% (in Europe, the dealership sells more cars with mileage than new ones).
We set ourselves a plan in 30% of new cars, we should sell on the system trade-in.
We get the first figures of the plan - 200 cars with a run a year.
We are ready to change cars with mileage for cars with mileage. Statistics of sales of Russian dealers say that the primary trade-in indicator fluctuates around 10%, and the secondary trade-5%.
We get 21 more cars.
Since financing gives us the opportunity to purchase cars that are 20% of the plan for new cars, we will purchase cars with mileage in the free market.
Another 100 cars
Primary and secondary trade-in from purchased cars - 10% and 5% respectively.
And 11 more cars.
In total, our sales plan for the year was 332 cars.

2. Market potential of the region

Now we need to check with the market of the region.
For this you need to know:
1. Population in the region
2. Number of cars per 1000 inhabitants
3. The annual share of sales of change of owners (the ratio between the number of cars and the change of owner in%)
4. The share of cars with a mileage of your brand running in the segment from 0 to 6 years
5 Market share of dealers (among sales between individuals, resellers, independent autotraders) in%
6. Individual dealer's share in% (in case there are, for example, 2 dealers, will be 50%)
Variant of calculation:
1. 200 000
2. 500
3. 18%
4. 10%
5. 10%
6. 100%
After making calculations, you can say that according to the market you can plan to sell 180 cars.

Now you have two numbers.
You can sell 332 cars
Based on the market of the region.

Comparing the two figures gives an idea of your potential, which you have not used so far.

In this case, this calculation is better to translate into lost profits.

Example:

The average selling price of cars with a mileage of your brand is 500 000 rubles. The minimum margin is 7%. Gross profit from 1 car is 25 000 rubles.

You can earn 8,300,000 rubles

Based on your position on the regional market - 4 500 000 rubles.

Potentially, you can get an additional income of 3 800 000 rubles.

Here is the planning of sales of cars with mileage.