Speed to Sale Must Become the Primary Focus for Used Car Success - AutoSuccessOnline

Speed to Sale Must Become the Primary Focus for Used Car Success

While this data is good news for franchise and independent used car dealers, the profit potential these sales numbers infer could be better, said a leading proponent of dealership speed-to-sale strategies.

Palo Alto, CA — J.D. Power Valuation Services recently reported continued strong used car sales through the first half of 2019. Though the market cooled somewhat in June, the month’s performance was still better than historic June figures.

While this data is good news for franchise and independent used car dealers, the profit potential these sales numbers infer could be better, said a leading proponent of dealership speed-to-sale strategies.

“We see now where used car department profitably improves significantly over status quo where speed-to-sale strategies are applied to reconditioning time-to-line automation,” said Dennis McGinn, founder and CEO of Rapid Recon.

The reality of today’s used car business isn’t just that speed matters — it matters more than ever. Speed to sale enhances the profit potential that dealers expect when using an automated inventory management tool, McGinn said.

“In the car business,” McGinn added, “life begins at a sale. The industry has focused too much on vehicle provisioning, which while important, is a once-a-week event. Selling goes on all day, every day — and to sell more cars faster at higher gross, it is speed to sale, not provisioning that determines success for a used car department.”

Visually, this model looks like this: SELL > adjust > ACQUIRE > adjust > SELL

McGinn said speed to sale either advances or delays how quickly the used car manager approves mechanical and cosmetic services to inventory in the pipeline. “It is this speed of approval that is central to used car departments getting cars from acquisition to sale-ready in three to five days,” McGinn said.

Speed of approval not only promotes inventory turns but influences inventory aging, floorplan expense and wholesale losses. It also makes provisioning tools more effective.

With speed-of-approval and speed-to-sale triggers on mobile devices, used car managers can approve repairs from anywhere, and the sales staff has real-time access to cars in inventory, along with their recon status and costs. Some dealers practicing these strategies retail 40% of incoming inventory off the transport or while the vehicle is in recon.

“These speed tools mean cars are sale-ready having most of their prime 21-day retail window ahead of them,” McGinn said.

Rapid Recon benchmarks and best practices have helped thousands of GMs, used car managers and service managers fine-tune their reconditioning methods. As a result, they achieve faster time-to-market and speed-to-sale rates, allowing them to move more vehicles while retaining gross.

Links:
Rapid Recon

You May Also Like

F&I Survey Shows Generational Differences in Research, Shopping

Price, availability and budget remain top of mind for consumers, but convenience in research and selection are growing in importance.

Protective Asset Protection, a provider of F&I programs and services, announced the results of a recent survey conducted to better understand consumer perspectives on automotive F&I products, as well as the factors that impact F&I purchase decisions when shopping for a vehicle at a dealership.

Impel Adds WhatsApp to AI-Powered Platform

Integration enables global auto retailers and OEMs to deliver AI-powered omnichannel experiences, encompassing the messaging platform.

Proactive Dealer Solutions Achieves Multiple Compliances

Certification is part of the company’s mission to deliver exceptional service while maintaining a secure environment for all client data.

U.S. Automobile Dealer Sentiment: Dealers Remain Pessimistic, Cautious

Cox economists note that dealer sentiment is likely worse than actual market conditions, stating that while profits are down from all-time highs, they still believe the dealer business is healthy.

Benchmark Data Suite Unveils Benchmark Alert System

This innovative system delivers real-time, actionable insights to enhance dealership performance and accountability.

Other Posts

Reynolds and Reynolds Donates $5 Million to Northwood University

The donation will help fund the construction of the new Center for Automotive & Mobility Studies at Northwood University.

Alan Jay Wildstein Donates $5 Million for Historic Project

The new facility at Northwood University will house a new Center for Automotive & Mobility Studies (CAMS).

Manheim Launches 4 Star Auto Auction in Alabama with TR Group

Manheim’s new fixed mobile site offers local dealers convenient access to needed inventory in Valley, Alabama.

The Good Fight Against a Rising Tide

Managing the recon operation to manage holding costs is a car dealer’s best offense against margin compression.

ocean waves stock