In our first of three articles discussing how to drive time and cost wastes out of the reconditioning process, we took a look at how lean manufacturing workflow principles when applied to automotive reconditioning, improves outcomes. That article outlined the fundamental processes for how
Buyers for pre-owned cars are spending money again, and across the country dealers are feeling cautiously optimistic about this continuing. At the same time, the online competitive landscape demands new ways of reaching buyers through search powerhouses, like AutoTrader.com, Cars.com and, now, Google. With all
On the road to more profitable used car operations, an increasing number of dealers are aligning their resources and processes to operate at best-practices level of reconditioning performance.Their recon operations, like yours, can cut cycle time by half,getting their inventory frontline ready in three to four days, adding a week of selling time and increasing inventory turns by a factor of one to three.
Metrics based on verifiable facts, and not opinions, is the only way to ensure you have airtight accountability in your recon process. If you include the third dimension of managing the ups and downs of business cycles, then these same metrics are vital to both
If you still run your recon department on “gut feel” and not metrics, you’re losing money. Metrics — hard performance data — is the road map to flowing gross from your recon to your bottom line. Manage by the facts and you’ll flow significant gross to
When I first got into the car business in the late 80’s, the term Margin Compression was something relating to industries other than Auto. Back in those days, a dealer normally had a 60-90 day period to maximize their gross profit. Unfortunately those days are
Blame – assign responsibility for a fault or wrong. Most dealership personnel will associate the term Reconditioning with Time-to-Line, although TTL involves much more than the normal “mechanical and cosmetic” processes. When I was in the dealership, the majority of the reconditioning of a used vehicle
“What is the difference between managing Reconditioning time and Time-to-Line? The active involvement of the GM. If you are still trying to hold people accountable for the reconditioning cycle instead of TTL then I have some great news. Recon is of course a vital
Four Ways to Improve Pre-Owned Efficiency By Mark Curcio10-10-2017 Managing modern pre-owned operations in a profitable manner has become an increasingly difficult venture in today’s competitive and aggressive market. Finding quality vehicles that can be priced to move quickly has become more expensive than ever before
One of the last opportunities in the modern dealership to make money is the reconditioning department. Unfortunately, most general managers don’t appreciate this function’s role in a well-run used car operation.
