Why are you letting holding cost kill your gross?

Vehicle reconditioning is an essential process for every used car department. It not only gets vehicles ready for consumers’ eyeballs, but when it gets them frontline-ready fast, it can mean more gross on every sale.

Every used car manager knows this intuitively.  I’m not sure, though, they understand the arithmetic behind this concept of time-to-market. Time-to-market is a span of time from vehicle acquisition – from trade or auction – to its frontline-ready appearance online or on the lot.

I’ve talked to umpteen dealers, used car managers, and service managers about ways to streamline their recon processes. I help them identify bottlenecks and other delays that slow the flow of this work through Inspection, UCM Approval, Parts, Mechanical, Body, Detail and Photos.  

I always ask, what is an acceptable number of days for your time-to-market? Is it 15, 10, 5? If even three days could be shaved off their time-to-market, how might that impact gross? Can five days or more be eliminated? Where the right processes and right recon intelligence is being used, this can, and is, being accomplished with consistency. 

...Read more on autosuccessonline >

Move the sliders to show what your REAL holding costs are. Email the results.