KPIs are the only way to assess whether your dealership is on track. So, every car dealer religiously measures, analyzes and verifies the accuracy, especially when the market changes.

Whether it’s website conversions, number of uploads, appointments, or closing rates, car dealerships must keep up with market fluctuations by constantly monitoring and adapting. Why? To gain a competitive advantage and improve its bottom line. As NFL coaches adjust plays after halftime, top dealers create a new plan based on KPI information to make the store as efficient as possible.

However, vehicle reconditioning usually takes a back seat and is easily overlooked. Since many dealerships are making money in today’s market, optimizing efficiency and recognition processes is pushed aside. This is a big miss for car dealerships. Auto refinishing can help provide buyers with the most used and sought after vehicles on the market. So, what recognition KPIs should car dealerships monitor?

We all know that starting a new process is always a challenge no matter what. Naturally, people don’t like change or responsibility. But the best time to fix a leaky roof is before the storm hits.

KPI – measuring success

1. Recon at time of retail. The time it takes for vehicles to be ready for retail sale is one of the most important KPIs for your team. For the average dealer, vehicle recognition takes 7-10 days. What if you could cut that time in half by using better technology and better processes? Dealerships are losing money every day on vehicles that are not in the lot. And in a market where valuations are changing rapidly, this risk intensifies. You can take steps to protect your inventory and avoid a slow recognition time that ends up turning that perfect car into a waste.

2. Check the pulse of each cars recognition status. Knowing the exact reconditioning position of each car is vital for your team’s performance, including status, next step and cost of repairs. Don’t let your vehicles get “lost” or forgotten. Manual tracking often leads to countless blind spots that hurt the bottom line – often without the dealer even realizing it.

3. Vendor Liability. Be proactive in informing suppliers of work to be carried out on all vehicles requiring their service. Hold them accountable for how long it takes them to complete a job and make sure it stays on your schedule.

4. Approval Deadlines. This is one of the biggest bottlenecks in the whole recognition process. On average, technicians or advisors handwrite repair estimates on the back of an RO and then physically present it to the used car manager for approval. What if they are out of or away from the office? An automated workflow management tool empowers everyone and quickly identifies opportunities to improve efficiency. Mastery of this KPI can reduce recognition time from approximately 12 hours to 2 days.

ROI on your investment

Leverage the technology that supports your existing recognition process using an application that can easily adapt to market fluctuations, then track, adjust and optimize. This allows you to dramatically improve the speed of your retail conversion strategy.

If you have any questions about this article or to start your recognition process, go to velocityautomotive.com.


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