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Managing Used Vehicle Reconditioning Costs...

Managing Used Vehicle Reconditioning Costs... April 13, 2015 by Ian Wright

OK, so the image of this recent 'barn find', a Porsche 356 Coupe sold at auction, may look a bit extreme.
But someone clearly saw the potential and the profit opportunity and parted with in excess of £32,000 for it!
And it is a real-life example of how there is a profit to be made through an organised and pragamatic approach to used vehicle reconditioning.
We often hear of dealerships wholesaling or auctioning potential retail vehicles because the cost of reconditioning them to the required standards exceeds their budgeted limit.  However, the investment required to recondition the vehicle is academic if a professional appraisal has been completed and the costs accounted for at the point of inspection.
Assuming the vehicle fits your stock profile and will meet your quality standards once the work has been completed, why pass up on these valuable opportunities? Clearly the stock holding time may be increased while the work is carried out, but with proper planning; scheduling the work with your aftersales departments and forward ordering any components required, you can create another retail opportunity and benefit from the incremental workshop revenues.
With premium used vehicle stock getting increasingly difficult to source, are you sure the vehicles going through your wholesale channels couldn’t be reconditioned to become retail vehicles?
Our training platform @ http://www.pepbusinessschool.com offers some excellent guidance on the Appraisal Process and Stock Profiling and it's just a click away.

 

 

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