Automotive Dealerships

Subject: Analysis of Payment Behaviour in the Automotive dealerships Sector

Based on a detailed evaluation of 241 companies, this report seeks to analyse the prevailing payment behaviour within the Automotive dealerships sector. The data reveals a remarkably stable payment culture, characterised by a strong convergence around standard commercial terms. The central tendency is clearly defined, with an average payment time of 31.9 days and a median of 31 days. This alignment indicates a lack of significant skew in the data, suggesting that extreme delays are rare. The standard deviation of 12 days further corroborates this consistency, implying that payment volatility is relatively low. Consequently, the sector appears to favour predictable cash flow cycles, which allows suppliers to organise their credit control processes with a higher degree of confidence.

The distribution analysis further highlights the sector's reliability. A substantial proportion of the dataset demonstrates prompt settlement habits; specifically, 113 companies (46.9%) fall within the 'Fast' category (0–30 days), whilst another 105 companies (43.6%) sit within the 'Moderate' band (31–45 days). Combined, over 90% of the organisations analysed settle their debts within a 45-day window. Notably, the interquartile range is tight at just 13 days (from 25 to 38 days), reinforcing the view that the vast majority of payments cluster around the one-month mark. Amongst the sample, there were zero instances of critical delays exceeding 90 days, a statistic that distinctively separates this sector from more distressed markets.

Despite the generally positive outlook, credit managers must realise that late payments remain a tangible operational risk. The performance breakdown indicates that 21.5% of payments are classified as late, even if they do not extend into critical territory. While 54.4% of the performance volume is paid within 30 days, there remains a tail of 8.3% paying over 60 days. The extremes of the dataset range from a highly impressive 1-day settlement to a slowest point of 80 days. However, with 33 top-tier companies specialising in rapid settlement (under 20 days), the benchmark for excellence is high. It is evident that whilst severe delinquency is absent, there is still a need for diligent credit monitoring to ensure payments do not drift from the median of 31 days towards the 60-day mark.

Geographically, the South East serves as the primary centre of activity in this sample, accounting for 51 companies, followed by a relatively even spread amongst the East Midlands and North West. Regardless of location, the overarching narrative for the Automotive dealerships sector is one of stability. The total absence of payments over 90 days and the strong clustering around the 30-day term suggest a healthy ecosystem. Stakeholders operating within this space can reasonably expect settlement within a standard commercial month, provided they maintain robust invoicing standards.