Dealerships have seen record profits over the last quarter, and one of the focus areas at the most successful dealerships, according to a bona-fide industry expert, is the appraisal and reconditioning process.
In his recent interview with CBT News, Randy Kobat, VP Operations for Inventory Management Solutions at Cox Automotive, shared his take on best practices for dealerships to maximize their used vehicle profits. It’s worth the time to watch the 9-minute video linked above, but here are some of the take-aways:
The current inventory shortage has exposed inconsistent practices in how dealerships handle their reconditioning, but improved processes will help dealerships run more efficiently in good times as well.
Important to understand vehicle cost estimation and what reconditioning really costs. Sometimes the estimates are way out of line with what the actual expenses are.
Every dealership needs a repeatable, consistent process for appraising vehicles.
Get good estimates on the front end, with a lot of good information in the appraisal process, including photos, comments and descriptions, so you are making good decisions on what that car is really going to cost to get front line ready.
The reconditioning process at dealerships is still mostly managed by spreadsheets and whiteboards.
Really important for all stakeholders to know the status and location of every car in the process.
Advantage for dealerships who implement more consistent processes and tools to be more efficient.
We couldn’t agree more!
AMT makes software for used car reconditioning that checks all the best practice boxes Randy recommends, and then some. Repair360™ is a complete Reconditioning Management System that creates a single source of information accessible by all stakeholders. From initial inspection and estimates, all the way through the recon process to front line ready, the software manages all aspects of reconditioning – including approvals, parts management, team and vendor management, workflows, alert notifications, and vehicle prioritization. Every stakeholder can access vehicles in the system to know where that vehicle is, and when to expect it on the front line.
If you are among the many dealerships using antiquated systems to manage your appraisals and reconditioning, we’d like to introduce you to a more profitable future. Contact us today to learn more and arrange a demonstration.