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The most productive reconditioning department runs like an assembly line, using defined processes, timed steps, and streamlined communications to produce more output, eliminate waste, and get buyers looking at cars online and on the lot five to 10 days sooner, notes Dennis McGinn, CEO of Rapid Recon time-to-market reconditioning workflow software.
Cutting even five days from this process flows directly to gross, according to NCM Associates, who through its 20 Group clients and moderator experts cites average dealership daily holding cost at $32 per vehicle, based on franchise and market area, says Paul Faletti, Jr. president and CEO of NCM Associates.
In other words, if a dealer’s average recon cycle is eight to 10 days, reducing it to a five-day cycle adds $96 to $160 in gross margin per vehicle retailed.
“Holding costs erode used car margins, so a faster time to market means more profitable used car operations,” McGinn says.
He offered these five tips to help used car and fixed operations managers work together more productively and shorten time-to-market:
In any market, time to market is critical. Dealership managers ignore time’s impact on profitability at a high price to the dealership.
Rapid Recon is the leading time-to-market reconditioning software for new and used car dealerships. Rapid Recon benchmarks and best practices help GMs, used car managers and service managers fine-tune their reconditioning practices to achieve faster time to market that helps retain vehicle gross. www.rapidrecon.com
VIDEO: Scott Pettitt, General Manager of Ford Fairfield in Northern California eliminates RECONDITIONING delays and cost with Rapid Recon.