The processes a dealership uses to recondition its vehicles have a large impact on its bottom line. Patterns are repeated again and again, and they can either save or cost a dealership money. A poor plan wastes both time and money, keeping employees busy doing work that ultimately won’t reap enough return. But an organized and efficient plan allows dealers to quickly do the work needed to recondition the vehicle, minimize turnaround time, and maximize profit.
Follow these tips to improve your reconditioning process and experience greater results:
The first step is buying the right cars. In an effort to fill their lots, too many dealers buy without doing adequate research. You shouldn’t skip this step. Researching a vehicle’s history through services such as CarFax, AutoCheck, VinAudit, and VINCheck allows you to get reports from multiple services that can reveal different information about the vehicle.
Once you obtain the information you need to make an informed decision, you shouldn’t ignore it in a rush to increase inventory. Avoid vehicles that require a great deal of reconditioning work, since that represents money that may or may not be recouped when the vehicle is sold.
Lower Reconditioning Costs
As reconditioning costs pile up, your chances of making money decrease. That’s why it’s important to lower costs where you can without compromising the vehicle’s safety.
For example, using non-OEM parts can help lower costs on everything from brake pads to wiper blades. Any outside vendors, such as those who recondition upholstery or fix dents, need to be closely scrutinized to ensure that costs don’t run unchecked in the absence of adequate oversight.
Create a Plan for Each Vehicle
Every vehicle should be evaluated to determine its retail prospects – specifically trade-ins, which should be discussed once a day to ensure they’ll receive the right amount of work. You can streamline the process by establishing a typical cost range for most reconditioning. As long as the vehicle stays within this range, it can generally proceed as planned. For vehicles that may cost more, the reconditioning staff should be able to get quick approvals or denials so they know how to proceed.
You should constantly monitor your reconditioning process to ensure it’s working smoothly and responsibly. Adjusting the process as needed is key to improving the bottom line and holding employees and the dealership accountable.