McGinn and French take time to look back at 2020 while also applying lessons to the new year. As a consultant, French gets to work alongside dealers across the country.
French begins the conversation by discussing the serious threats facing the industry posed by the ongoing chip shortage. French uses the term, “chipdemic” to illustrate how impactful the global shortage is becoming. According to French, the chip shortage could either move over 500,000 vehicles to the end of the year or completely cancel the orders for the vehicles altogether. New vehicle-buyers will then be forced to transition to the certified pre-owned market, moving many of those consumers to the five years or older used-vehicle market.
“It’s time for all dealers to consider making the used car market the centerpiece of their business,” said French. “Frankly, I don’t know if we can rely on any sort of regular flow of new car supply.”
McGinn transitions to discuss how dealers can improve efficiency in their used-vehicle operations. McGinn says that friction in the system slows down how quickly vehicles progress through reconditioning and are placed on the lot. To make strong improvements in efficiency, dealers must be willing to adjust their processes to eliminate those areas of friction.
French makes what he calls, “a controversial statement” by saying that recon time-to-line is the most expensive cost for dealers. French uses the analogy of recon software acting as a vehicle with passengers in an HOV lane. Without recon software, dealers get stuck in traffic causing them to get further behind in their process.
To learn more about Rapid Recon, visit them at https://www.rapidrecon.com/.
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