Are your approval processes hampering your ability to get your cars retail-ready? Here’s a look at roadblocks that can delay used car turnover — and tips to help remove them.
- The time it takes your dealership to get a car through recon can hinder your ability to get the best prices for that vehicle.
- Getting used cars retail-ready can require many approvals, so you need an efficient process to provide these approvals without delay.
- There are ways to eliminate these turnover roadblocks to accelerate sales and increase your profits.
- Used car workflow platforms provide transparency throughout the recon process and ensure nothing slows down your new inventory on its way to the sales lot.
Approval processes can inadvertently slow down time-to-retail. But, with a thorough review of your workflows and bottlenecks, you can identify and address roadblocks that otherwise hinder inventory turn rate.
5 approval processes roadblocks
Many issues can keep your cars in recon longer than they need to be, and they’ll be bleeding value the entire time they’re there. Here are five ways simply getting the person to sign off more quickly can get new inventory to market faster.
After a car reaches your dealership, there may be idle time, a period after you have received a vehicle and it is waiting to be worked on. At this point, a technician has probably already inspected the car and an advisor has provided the used car manager (UCM) with an estimated price. The UCM is responsible for reviewing the estimate and approving any repair work. The longer it takes the UCM to perform their review, the longer it takes to get a car retail-ready.
Your mechanics can get to work on car repairs once they know which parts are necessary and which repairs need to be completed. They must also follow established processes and procedures to ensure their work is verified by a superior. Without proper approval, these mechanics risk performing incorrect repairs or using unauthorized parts, both of which can delay time-to-retail.
3. Body shop
Repairs to dents, dings, and other exterior damage are essential to ensure a car fetches its top price. These repairs must be performed by body shop technicians, who must use approved processes, procedures, and parts.
After the repairs are finished, the work usually must be approved by a manager. Yet, if there is a gap in the time it takes body shop technicians to complete their work and the time it takes a manager to review and approve this work, it can make it tough to optimize your inventory turn rate.
You want to promote your car online, and you need high-resolution photos to do so. This will require you to clean the car inside and out. However, the time it takes to get a used car looking picture-perfect can add up quickly, particularly if you lack efficient cleaning processes and procedures. Plus, it may take several hours or days to get photos edited and approved to upload to your website.
The frontline approval process requires you to have your car ready to show to consumers any time they visit. As such, a general manager or other dealership supervisor will need to evaluate and approve all aspects of vehicle preparation to ensure a vehicle is good to go.
Without a seamless frontline approval process in place, the time it takes to get a vehicle frontline-ready can escalate to the point where it negatively impacts your ability to maximize the profit on the vehicle sale.
How to eliminate approval processes roadblocks
There are things you can do to eliminate approval process roadblocks in each of these cases. Here are the top five solutions to consider:
1. Make a plan for faster approvals
Examine your current approval processes, how they work, and the results associated with them. Determine which departments and stakeholders within your dealership are involved in these processes, too. Then meet with department members to create a plan that will help all departments speed up your approval processes.
2. Open the lines of communication
Establish processes that ensure each department within your dealership can clearly communicate with one another. These processes promote accountability and transparency, as each department can see where a car is in the recon process and take the steps necessary to complete the proper approvals. If there are any concerns or questions during approval stages, department members can connect with one another or other departments to ensure cars move through the recon process as quickly as possible.
3. Establish recon workflows
Create workflows to make your inventory turn time efficient and measurable. Workflows include observable and repeatable activities that different departments can use to streamline everyday business operations and approval processes. When executed correctly, workflows save time, money, and resources — and they ensure you consistently provide customers with high-quality cars.
4. Monitor your results
Track your approval processes and find out how long it takes to move a car from acquisition to retail-ready. Data is key, and you can collect information to review car value erosion, holding costs, and other metrics that impact your bottom line. As you evaluate this information, establish baselines for improvement. Over time, you can take steps to reduce car time-in-recon.
5. Leverage auto recon software
Auto recon software makes it simple to collect approval process data and transform it into actionable insights. This software can help you get the most value out of the data at your disposal, and ultimately automate your recon process. Perhaps best of all, the recon software can drive communication and collaboration across your dealership, ensuring all departments work together to get every car retail-ready ASAP.
Want to speed up your approval processes? ReconVelocity can help
If lengthy, complex approval processes are slowing down your recon process, ReconVelocity is here to assist you. We offer an auto recon platform designed to help dealerships speed up their approval processes.
Our recon software offers real-time notifications and approvals, so department members across your dealership can see exactly where a car stands in the recon process. The software lets department members get updates via an app on their smartphone or tablet, enabling them to stay in the loop at each stage of this process, too.
We are happy to provide additional details about our recon software and how you can use it across your dealership. To learn more, please give us a call at (850) 616-6294 to speak with a recon expert. Or use our contact form to request a product demo.