Used Car Reconditioning Process

The used vehicle reconditioning time for different dealers tends to vary a great deal. It has been observed that the most efficient dealers require no more than 72 hours to complete this process. On the other hand, for many other dealers, this turnaround time can be as high as seven days or even more.

There are two major factors behind this disparity in reconditioning time across dealerships. Firstly, all dealers do not equally recognize the fact that the reconditioning time has a direct impact on the dealership’s potential for front-end profit. Secondly, all dealerships do not have stringent monitoring system aimed at reducing the reconditioning time.

Mentioned below are five simple ways that can streamline the reconditioning process, leading to minimum delay and maximum profitability for the dealers.
  1. Avoid acquisition of cars that are problematic: In their desperation to fill the lot with inventory, dealers often end up acquiring cars that need lots of reconditioning.  CARFAX, AutoCheck, and vital reports are sometimes ignored because the dealership is always in a hurry to add inventory. Avoiding these vehicles will save both time and money spent on reconditioning.
  2. Proper determination of an exit strategy for the cars : This point is almost similar to the last one. As per this industry best practice, dealerships should only restrict themselves to acquiring cars that have adequate market appeal. Trade-ins are also extremely tricky situations for the dealers to handle. The best approach for the dealers would be to have the trade-ins reviewed by the decision-makers and appraisers before determining the exit strategy.
  3. Auto approval of reconditioning : Many a time, the reconditioning process gets delayed when the managers looking after the process fail to approve the work in a timely manner. In order work around this problem, many dealerships fix up a baseline reconditioning cost for their vehicles. Whenever the reconditioning estimate is less than the threshold, they allow completion of reconditioning work by the service department.
  4. Increase the speed of reconditioning : Reducing the reconditioning time is one of the best ways to improve the overall process. Dealers can improve their reconditioning speed by creating a dedicated team focused on building a process that is thorough, efficient, and fast. It is a good idea to introduce performance-linked bonuses and incentives for the managers/ technicians in the team.
  5. Cost cutting in the right areas : Many dealers have received great results by thoroughly examining the cost incurred on parts and internal labor. Use of inexpensive, non-OEM parts such as wiper blades, tires, brake pads, etc. can significantly improve the front-end profit margin. The same can be done by using cheap rate labors for window repairs, small dent repairs, upholstery, etc.
By implementing these best practices, you can easily speed up your process of getting the vehicles ready for the front end. Thanks for reading this post and please come back for more similar discussions.

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