Optimizing the PDI Process: Key to Fast New Car Sales in a Surplus Market

By Dennis McGinn, Founder & CEO of Rapid Recon

AutoSuccess, August 2024

During the coronavirus pandemic, inventory was historically low, and customers frequently paid above MSRP and financed cars at higher interest rates and for longer periods of time. These circumstances have resulted in many customers being underwater with their pandemic-era purchase, and upgrading vehicles has become financially difficult. This in turn has resulted in a surplus of new cars sitting on lots. To avoid holding costs, dealerships must sell new car inventory new cars quickly. Optimizing the Pre-Delivery Inspection (PDI) process is crucial, yet often overlooked.

The PDI process ensures new vehicles meet manufacturer standards before delivery. While dealerships focus on reconditioning used cars, the efficiency of the PDI process for new cars is equally vital. A streamlined PDI process enhances customer satisfaction and accelerates inventory turnover, critical in a high-pressure market. When cars spend less time in the PDI phase, they can be delivered to customers faster, reducing inventory holding costs and improving overall dealership profitability. Modern software solutions can transform the PDI process, making it more efficient and effective. Here’s how:

1. Faster Turnaround Times:

Technology streamlines the PDI workflow, allowing vehicles to be ready for sale faster. Automated scheduling and progress tracking ensure that inspections are completed promptly. This reduces holding costs and frees up space for new inventory, which is essential when dealing with a surplus.

2. Improved Quality Control:

Automated systems ensure every step of the PDI is completed, maintaining high standards and reducing the likelihood of mistakes. Consistency in the PDI process means fewer post-delivery issues, leading to higher customer satisfaction and fewer returns or service visits.

3. Enhanced Visibility and Accountability:

Real-time tracking and reporting identify bottlenecks, ensuring a smooth and efficient process. Management can see the status of every vehicle in the PDI pipeline, allowing for quick intervention if delays occur. This visibility helps in maintaining a steady flow of cars from inspection to the showroom floor.

4. Cost Savings:

Reducing time and labor involved in the PDI process lowers operational costs, making the dealership more profitable. With automated processes, dealerships can allocate human resources more effectively, focusing on areas that directly contribute to sales and customer service.

Shifting to a technology-driven PDI process involves several key steps. First, evaluate current PDI workflows to identify areas for improvement. Understanding the existing process helps in pinpointing inefficiencies and areas where technology can make the most impact. Next, choose a reputable software provider that offers comprehensive PDI management solutions. The right software should be user-friendly, scalable, and provide real-time data and analytics. Then ensure staff are trained to use the new system effectively. Proper training ensures that the technology is used to its full potential, maximizing the benefits of automation and real-time tracking. Finally, continuously monitor the process and make necessary adjustments to maintain efficiency. Regular reviews of the PDI process help in identifying new areas for improvement and adapting to changing market conditions.

Optimizing the PDI process through technology is crucial for dealerships facing a surplus market. It ensures faster turnaround times, improves quality control, enhances visibility, and reduces costs. By focusing on this controllable aspect, dealerships can improve efficiency, reduce costs, and enhance customer satisfaction. Embracing technology in the PDI process will help dealerships sell new cars more quickly and maintain profitability in a challenging market. Investing in the right technology and continuously refining the process will position dealerships for success in an increasingly competitive landscape.

About Rapid Recon

Reconditioning workflow automation from Rapid Recon is the industry standard in time-to-line inventory turn and speed-to-sale vehicle revenue enhancement for automotive retailers. Benchmarking data based on 13 million vehicles processed uniquely positions Rapid Recon to advise dealers on how to improve their store’s profitability. Used by more than 2,000 dealerships, Rapid Recon ensures the accountability of processes, property, and people. Hence, dealers know answers quickly, find assets anywhere, and sell vehicles promptly to grow dealership profitability. www.rapidrecon.com CALL US: +650‑999‑0497