Recon Process - Used Car Recon Dealer Software Blog - Page #2

Technology is used extensively these days to predict the inventory’s selling probability beyond a specific turn time, understand the necessity of discarding outdated inventory, and to ensure that fresh vehicles are always there in the inventory. 
There is no denying the fact that reconciliation is an integral part of getting a car ready for the frontline. However, it is nothing more than a subset of the time-to-market. There was a time when the General Managers were happy to see the inventory manager, service manager, and UCM going through a spreadsheet for the metrics and accountability. However, now, the Dealer Principal or General Manager has a more direct role to play in time-to-market because of three strategic reasons. It has become much easier for them to remain on top of their metrics without much effort. 
Most of the industry experts suggest that each vehicle suffers a net value depreciation of 1.50% to 1.75% every month.
This depreciation percentage may not look like an alarming one. However, this percentage refers to a monthly depreciation of $30,000 for a dealership with 100 vehicles, each worth $15,000.
This is equal to a depreciation of one thousand dollars per day. Therefore, it is possible to improve a dealership’s bottom line significantly even by improving the reconditioning process by a few days.
Profitability of your dealership can be improved by managing the three key aspects of your business. 
Key factors that affect your profitability are as under
  • Control your acqusition cost
  • Manage your sale price
  • Monitor your reconditioning process
Create transparency between departments by providing them with one central repoistory for all documentation and communication.

Identify process and track success, its that simple.

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