Dealers Keep Improving Key Metrics Using Recon Software

Dealers Keep Improving Key Metrics Using Recon Software

Average days in recon speed is increasingly important as online selling stimulates more sales from cars still in recon.

Rapid Recon has released its latest update on dealers’ progress toward improving their key reconditioning performance metrics.  

From May 2020 through March 2021, users of this speed-to-sale software reduced their Average Days in Recon (ADR) performance by 25% and their Time to Line (T2L) execution by 11%, the company said. 

“Most revealing in this continued improvement is these dealers made these gains despite the pandemic slowdown and the current remarkable demand for used cars. The data show that these dealers continue to get cars sale-ready fast to meet this record demand,” said Anthony Martinez, Rapid Recon director of client services. 

These improvements translate into two days’ faster reconditioning, which at NCM Associates’ $40 per day per car holding cost average means an extra $80 per vehicle in gross margin. Across 100 vehicles, the gain is $8,000.  

ADR measures from when recon staff first start work reconditioning a vehicle until all steps are completed from mechanical to photography. T2L is a total count of days, from vehicle acquisition through ADR until the finished car is released as sale- and delivery-ready. The T2L best practice is five to seven days. 

ADR speed is increasingly important as online selling stimulates more sales from cars still in recon.  

Martinez identified three characteristics exhibited by dealers improving these critical performance metrics: 

  • A commitment to continuous improvement of processes by which they bring used cars to sale-ready status more quickly. 
  • A consistent focus on using the software to identify and remove approval delays and create real-time communications and information sharing among crucial fixed and variable operations personnel, from lot tech to dealer principal. 
  • Aggressive reach-out and interaction with Rapid Recon’s Client Services team, including virtual and onsite performance management recon experts for an in-depth consultation, process and performance reporting and analysis, and shared best practices. 

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