17 Apr Recon Workflow From Purchase or Trade to Deal Funded
The deal is not done until it’s “metal over the curb.”
Ever heard about a sale where the “stips” were not satisfied after multiple attempts with lenders but the trade was already sold? With all the market pressure to continually improve turns, this can — and does — happen. And unwinding a deal like this can be a financial nightmare, accompanied by a CSI hit.
So how do you keep this from happening? The answer came from a Nissan dealer in Atlanta, who called me two months ago explaining that this is a substantial problem at many dealerships, but could be addressed by simply adding on a few steps to the recon workflow. He explained that the only differences between a car that reaches the frontline and one that moves on through F&I is a deal number and an assigned F&I manager. One of the F&I managers is then responsible for preparing the deal for contracting. The next step is scrubbing, usually done by an experienced financing person, who makes sure the stipulations are satisfied. The final step is to secure funding and then — and not until then — is the deal finalized and funded.
If a deal is clean or all- cash and no trade, then it’s possible to complete all the paperwork in less than two hours. But most deals are not that easy, leaving the sale pending until the final contract is settled and you have your money, which can take hours, days or even weeks.
Using a workflow system to take cars from purchased or trade, cleared all the way to deal funded, ensures that there is accountability all the way through the sale. In addition to time-to-market, you can now measure time-to-funded.
Dennis McGinn is the founder and CEO of Rapid Recon. He can be contacted at 866.268.3582, or by email at email@example.com.