Dealers often find themselves in economic danger due to the gap that occurs between a vehicle’s acquisition and when it’s retail ready. Being mindful of this gap can help you avoid any potential trouble. Here to explain this in more depth as he does in his article found in our November issue of Car Biz Today is Dennis McGinn, founder, and CEO of Rapid Recon.
Vehicle reconditioning in today’s dealership focuses on a time to line production practice. Managing and ultimately reducing this time to line dramatically increases productivity and profitability in the overall reconditioning system. However, a gap forms in the time it takes to get a new vehicle acquisition retail ready. According to Dennis, this gap that puts general managers at risk of profit and time loss is comprised of the following five inefficiencies:
- Forgotten or “lost” cars that have been misplaced or are waiting for parts
- Poor communication between the fixed-ops department and the recon manager
- Workflow bottlenecks that slow the entire process down
- A slow repair process
- Lack of knowledge about holding costs
The reconditioning turn around needs to be considered a basic metric in every operation and really treated as a utility function, that everyone targets as one cohesive unit.
Dennis explains, “This gap is something that you need to have your hands on, and you can make it scale because it’s going to go up and it’s going to go down…and you’re going to have resource challenges, and all kinds of things as the market shifts around.”
Once your dealership has a solid hold on the reconditioning gap, they can work towards closing that it and managing it in an effective way. This without a doubt, leads to several benefits that every department will appreciate like; knowing where every car is at any given time (both in location and recon), having a fluid and flexible process, the ability to manage recon from phone or desktop, and of course, getting cars showroom ready faster.