4 Keys to Having a Successful Inventory Reconditioning Process
The Lot Blog
In order to sell cars, you need to have a variety of inventory on your lot. One of the main advantages of enrolling in the Credit Acceptance auto finance program is it enables you to provide customers with credit approval for nearly any vehicle, including new vehicles.
The key is having an inventory reconditioning process that can help you improve your used car sales. Here’s how you can do that:
- Do your research
Before purchasing a new or used vehicle, do your research. Find out if there are common issues with specific vehicle types and check the Carfax® or AutoCheck® reports for previous accidents or other negative vehicle history.
- Know which vehicles are popular in your market
Car dealers enrolled in the Credit Acceptance program can use the Top 25 Sellers report in CAPS® to determine the most popular vehicles sold by car dealers participating with Credit Acceptance over the last six months. It also shows average initial profit, portfolio profit, total profit, ACV and Black Book® spread and mileage on these vehicles.
- Establish a written reconditioning process
Develop an inspection checklist that you use to check every vehicle in your inventory. It is important to enter service records and the costs into your Dealership Management System (DMS).
- Remember that time is money
Be sure to calculate your dealership’s daily holding cost so that you are aware of the optimal number of days you should spend reconditioning your vehicles.
When followed consistently, these four steps can help save time and money in getting a used car ready for a retail sale. Interested in enrolling in our auto finance program? Fill out the form on our Become a Dealer page to get started!