As certified pre-owned and off-lease vehicles flood the market, used cars are put in a tough spot. Used car Managers know they have to step up their game, and many double down on marketing and sales pressure. There is one area that is often overlooked, however. When it comes to improving sales and cutting costs, it's well worth focusing some of your energy on expedited reconditioning.
Simply put, expedited reconditioning, as explained in Dennis McGinn's recent article, is the streamlining of the reconditioning process from beginning to end. Taking a close look at your current process and finding ways you can make it run leaner offers a host of benefits.
3 Key Benefits of Expedited Reconditioning
1. Improve Internal Flow and Communication
A dealership works better when it works together. Implementing a thought out plan for expedited reconditioning sends a clear message that used car sales and vehicle acquisition are an important part of your dealership. At the same time, it opens up channels of communication about how best to streamline the process.
Bring in people from across all your departments to provide their input. Couple their insights with a high-quality, software driven approach to expedited reconditioning and you'll create a workplace where departments come together for a common goal: success.
2. Faster Time-to-Line and Improved Bottom Line
Time-to-Line (T2L) is the goal in any expedited reconditioning system. Once you acquire a car, it will cost you an average of $20-40 every day it is held up with reconditioning. Many dealerships report holding times of 20 days which adds $400-800 to the cost of the car - a cost dealerships have to absorb.
Considering holding time costs can run up to nearly $1,000 for the current average, reducing that time means an instant boost to the profitability of your used car sales. By shaving that time down from 20 days to even half that, you can see a huge difference. Consider the fact that some changes in software and approach can actually bring that window down to 5 days or less and the potential for profit becomes even more impressive.
3. Fresh, Rotating Stock Means Improved Dealership Morale
When you're moving cars through the reconditioning process more efficiently, it means you're getting cars off the lot and making room for fresh stock more quickly. Having that fresh stock means people know your cars move fast and they need to get in quickly if they want to snag a car they've seen online. Fresh stock attracts more customers for sales as well as private sellers looking to sell their car directly. Quite simply, it builds a reputation of having cars people want in the condition they expect with service that impresses.
Fresh stock, better sales and a quality reputation locally - it's pretty much the definition of a truly successful dealership. People want to be part of a winning team as well as part of a company that values quality, efficiency and fairness. Since improving the reconditioning process positively impacts each of these areas, it can play a huge role in revitalizing the energy of a dealership.
Expedited reconditioning isn't about cutting corners - it's about trimming costs by streamlining the reconditioning process in order to improve sales, reduce costs and make your dealership more attractive to buyers and sellers. In the end, you don't want to sacrifice quality in the name of efficiency. That's why a measured and well planned approach to expedited reconditioning is vital to dealerships looking to reduce overhead costs and move cars more quickly without sacrificing quality or their reputation.