2017 is starting to look like a promising year for used car dealers. However, many dealers are finding they need to sell MORE used cars than they did in previous years just to make the same profit as before. And with consumers becoming more and more educated about the car buying process it’s making the market much more competitive than ever. Simply put, the number of cars sold is increasing, but margins are lower than in years passed.
You already know that when your used car inventory isn’t available for sale, it’s hurting your profit in a big way. Your best chance at a good margin on any single car sale is to move it within the first 30-45 days. But, what if it takes 2 weeks (or longer) to get the car ready for sale? You call the shop or detail guys and ask “What’s going on with that car?! How much longer? You’re killing me!”. All the while that car is eating into your, already shrinking, margin. I won’t bore you with all of the stats (they can be found all over the internet…NADA, Edmunds, KBB, etc.). We can all agree that the challenge is trying to increase margin while keeping retail prices competitive enough to generate sales. The question is how to tackle it. The simple answer is to reduce costs, and the time it takes to get your inventory front line ready.
It’s widely agreed by experts, throughout the industry, that both of these challenges can be overcome by focusing on fixed ops costs. More specifically, your used car reconditioning process.
Do you know where your weak links are in your reconditioning process? Is it service, detail, parts or a vendor? How many days does it take to get your cars “front line” ready for sale? Every day is costing you more money. Do you ever need to know where a car is but have no idea where it is in the process? Knowing the answers to these questions will help resolve the issues.
Dealers that embrace the technology and tools that are available to them, probably, already have this all figured out. These tools provide the knowledge you need at your fingertips no matter where you are. Allowing you to make decisions, know how much you’re spending on each car, where it is and how long it’s been there.
ReconTRAC is the best tool on the market to manage your reconditioning process. It provides you with the knowledge you need to make the necessary changes in your process that will save you thousands of dollars each month. Let me ask you….if you could cut your current reconditioning cycle time in half……how much money would you save each month?
ReconTRAC is an automated, customizable, cloud-based management/tracking system for used car reconditioning. It allows you to track a car, step-by-step, from the minute you take ownership until the new owner drives it off the lot. You’ll know where the car is, how long it’s taking and how much it’s costing you.
Look, we know you are operating with razor thin margins and always looking for a chance to increase that margin. Schedule a demo of ReconTRAC and let us show you how our versatile and customizable system can help make your process more efficient and save you thousands.
