Many car dealerships use the most recent and cutting-edge technological developments each year. They are doing this not just to increase the times their inventory is turned over but also to prepare themselves for the possibility of sales occurring outside those time intervals. When operating a used car dealership, there are numerous factors to consider; nevertheless, one certain thing is that you are losing money every day that a vehicle is being reconditioned.
Now, you can say bye to huge expenses on the reconditioning process with the help of auto dealer reconditioning software. Our Simple car reconditioning software comes with a host of features that makes your car dealership business profitable and more organized. Even better, you can enjoy a free trial without giving your card details. You can simply click here to know more about our reconditioning software.
A real-life example for you:
To illustrate this time, let’s look at a real-market scenario. Let’s imagine that your turn time is fifty days. However, it takes you nine days to recondition the car from the auction before it can be sold on the lot. By increasing the vehicle’s turn time, you cut the vehicle’s chances of being sold by 18 percent. If you wait any longer than that, there is a chance that you will have to either put it back up for auction or dramatically lower the price to earn a profit on it. The longer you keep a car in inventory that isn’t driveable by a prospective client, the lower the chances the vehicle will be sold to that buyer.
The business’s success depends on the sales staff moving as quickly as possible. If the mechanics in the repair department take too long to do their work, there will be tension. The time it takes to bring a product to market is directly influenced by the reconditioning process’s speed. Because of this, there is a potential for moral issues to arise across the various divisions in your organization.
Your time to market will be cut significantly if you establish consistent procedures for your back-office operations, service department, front-end sales, and vendor relationships. Communication is one of the most significant obstacles facing used car shops and the process of reconditioning vehicles nowadays. Car reconditioning software can potentially improve communication across all of the departments in an organization by making it simpler to access information, facilitating the identification of those responsible for delays, and expediting the approval process.
Reconditioning Management software may also decrease friction between departments by allowing your fixed operations department to provide the sales department with accurate delivery timeframes for each vehicle, which the sales department can use to establish their expectations.
When reconditioning times are reduced, sales may be increased.
Your reconditioning process is more crucial than it has ever been because of the rapid growth of the second-hand automobile market, which is being driven by a variety of external causes. There has been a rise in the demand for reasonably priced used automobiles that have been properly maintained, and dealers that are able to acquire a vehicle, recondition it, and put it back on the market as quickly as possible will have an advantage over their rivals in terms of success.
Make sure that your inventory includes the vehicles that are most desired by your clients.
However, accelerating the process of reconditioning your products has many advantages beyond just increased revenue. Your time to the market may be improved if you shorten your reconditioning process from the 11 to 14 days that some dealers are experiencing down to five days or less. This indicates that more automobiles will be added to your inventory at a quicker rate.
This helps to enhance the turnover of your goods, which is another benefit. In practice, this means that you’ll start selling more automobiles than you have in your used inventory at any one time. Because of the consistent turnover of your inventory, you will have the ability to start selling more of the automobiles that are in the greatest demand in your specific market.
Raise the total gross of your sales
According to the information presented in the article, you incur a loss of around $32 for every day that a car remains unsold on your lot. The worth of the vehicle to your dealership will decrease with each passing day as a result of the passage of time. When a used car is in your dealership’s reconditioning process for an extended period of time, the expenses associated with that vehicle increase.
For instance, if your present procedure for reconditioning a car takes roughly ten days to finish, then the cost of such a vehicle to your dealership is about $320. If you can shorten this procedure to only three days, the total cost will reduce to $96 from its current level. When you make cuts to expenses of this kind, you increase the amount of money you earn from the sale of each of these refurbished automobiles.
It helps to maintain order among the team
When things go swimmingly for our teams, every one of us is well aware of how good it feels. The work is completed more quickly and with better outcomes, morale is high, and your clients have the impression that they are receiving the greatest possible service. However, you can only achieve this state of flow, which is extraordinarily productive, by using an organizational system. When everyone is on the same page in terms of what needs to be done, when it needs to be done, and why, the amount of time wasted seeking for something to do is reduced.
One of the most effective methods to maintain order and ensure that everyone on your team is doing their part is to use dealership reconditioning software. The reconditioning system generates a workflow that is straightforward, which reduces the likelihood of errors and misunderstandings occurring during the process. Because workers can utilize the data to understand precisely where the car is in the reconditioning process and what must be done next, this is the case.
When it comes to back-office information, car reconditioning, sales, and invoicing customers, this strategy will provide a far more structured approach than the current one. A Simple and effective system like Simple Dealer reconditioning software can improve streamline operations and boost revenue. Fill out the form to enquire and book your free trial of Simple Dealer Reconditioning software. Whether you need to decrease time to market or want to get a competitive price on inventory, our reconditioning software is all you need.