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Lesson 3 of 7 · Intermediate

How to reduce stock ageing without destroying margin

Cutting prices reduces ageing. It also reduces gross. The skill is knowing which cars to cut, when, and by how much — and that decision is available to you whether or not you run Omnetic.

  • 35 min
  • Video · reading · template
  • Approved English lesson
Used-car stock review with ageing and margin evidence

By the end you will be able to

  • Read an ageing profile and say which cars are a problem this week rather than eventually.
  • Calculate what a car costs you per week it stays, including the money it is holding still.
  • Choose between a price cut, a spend on preparation, and a trade exit — with a reason.
  • Set a review rhythm your buyers will actually keep.

6 min · video placeholder

Transcript available. Read instead of watching.

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Every video has a full transcript. Half the people who need this lesson are on a forecourt with no headphones.

A car standing still is not free

Most dealers price ageing as an emotion — the car feels old, so it gets cut. The number is more useful. A vehicle holds capital, occupies space, depreciates against a moving market, and costs interest if it was funded. Add those together per week and the cut you were dreading is usually smaller than the wait.

Funding

Your actual rate on the landed cost, per week — not an annual figure you never divide.

Depreciation

Market movement for that specification, which is not the same as your ageing policy.

Space

What the pitch is worth if a faster car stood there instead.

Attention

Uncounted and real: the car everybody has stopped mentioning is the one nobody is selling.

No generic benchmark figure

What a week costs is specific to your funding, your market and your pitch, and a generic number would be worse than none.

Reading an ageing profile properly

An average age tells you almost nothing. What matters is the shape: how many units sit past your policy, whether they cluster in one specification, and whether the tail is growing week on week. A stable tail is a pricing decision; a growing tail is a buying problem.

Stock Report · ageing profile, 62 unitsCONCEPT UI
Ageing profile data supplied by the source lesson
0–30 days31–6061–9090+
381383
Eleven units past sixty days, and two of the three oldest are the same specification. That is not eleven pricing decisions — it is one buying conversation and nine price reviews.

In Omnetic: Stock Report holds this profile live. Without Omnetic: a weekly export with days-in-stock and specification gets you the same shape, as long as everyone agrees what day zero is.

One car, three options, one decision

An Octavia 2.0 TDI Style bought in Vienna and prepared in Prague. Landed cost 508 400 CZK, preparation 4 000, total cost 512 400. It has been on the pitch for 71 days at 589 000 with four enquiries and no offer.

Illustrative figures supplied by the source lesson
DecisionCut 15 000Spend 9 000 on prepExit to trade
Price after574 000589 000trade bid
Gross if it sells61 60067 600lower, immediate
Likely to moveyes, weeksunknownyes, days
The real questionIs 15 000 less than what four more weeks costs?Do the four enquiries say the car is wrong, or the price?Would you buy this car again at all?

There is no correct answer printed here on purpose. The lesson teaches the comparison, not our preference — and a dealer who cuts because a course told them to has learned nothing. Figures are illustrative and reconcile with the worked examples elsewhere on this site.

A weekly review that survives a busy Monday

Checklist · twenty minutes

  • Anything that crossed your policy age this week — decide, do not defer.
  • Enquiries per unit on the 60+ group: interest without offers is a price signal.
  • Two units of the same specification ageing together — stop buying it before repricing it.
  • Every decision recorded with its reason, so next month you can tell luck from judgement.
  • One person owns the list. A review that belongs to everybody happens to nobody.

Weekly ageing review sheet

A one-page template with the four cost inputs and a decision column. Works in any spreadsheet; no account needed.

Download destination was not supplied in the generated source.

Knowledge check

Two units of the same specification have both passed 60 days, while the rest of your stock is turning normally. What is the first action?

  1. Cut both prices by the same amount.
  2. Review whether you should be buying that specification at all.
  3. Spend on preparation to make them stand out.
  4. Move both to trade immediately.
Show the source answer

Correct: Review whether you should be buying that specification at all.

Repricing treats the symptom one car at a time. Two of the same specification ageing together is a buying signal, and cutting both without changing what you buy guarantees a third next month.

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Landed cost, without the optimism

What a cross-border purchase actually costs once transport, VAT and paperwork are counted.

If you want the software to do it

Stock Report and Price Report: the profile live, and market evidence next to the decision. The lesson works without them — this is the shortcut, not the point.