Profit killer: used-car holding times
21,304 €
a year in holding costs, unnoticed
- Starting point
- 40 used cars in stock, worth €18,000 on average, standing for 90 days. That ties up €720,000 in capital.
- Calculation
- €720,000 × (90 / 365) × 12 % cost rate for tied capital, depreciation and floor space = €21,304 a year.
- Lever
- Cutting holding time from 90 to 60 days saves around €7,100 a year — without selling a single extra vehicle.