The Importance of Reducing Time Spent on Tasks in Your Car Dealership Recognition Department

As auto dealers continue to grapple with the challenges of a prolonged shortage of new vehicle inventory and supply chain disruptions, many are now facing increasing pressure to find or better leverage new revenue streams. . One such solution is to speed up the trade-in reconditioning process, putting vehicles on the used sale lot faster. Mike Boyd, Senior Director of Business Development and Founder of iRecon, is here to walk us through this process of reducing task time.

These are certainly tough times for dealerships hoping to maintain consistent profitability. Boyd points out that speeding up the reconditioning process is a key factor that is not addressed as much as it should. Traditionally, auto dealerships wait until a vehicle is fully reconditioned before releasing it, however, service orders are experiencing an increasing workload and a shortage of technicians. Data shows that over 80% of repossessed vehicles are delayed due to backlog. A limited inventory of new vehicles adds additional pressure to the dealership’s used car operations. Reducing the time spent on tasks in the reconditioning department will be crucial for car dealerships at this stage.

The COVID-19 pandemic is also a big part of that equation, Boyd says. Service customers who previously avoided the dealership have returned in droves. In fact, according to data from Cox Automotive, dealership service departments are operating at over 90% of what they were in 2019. The data also reveals that customers are putting in more service and repair if they can’t find not the new vehicle they want. This means that the average RO spend has increased as well as the average service technician workload. Additionally, more than 49% of dealerships take 8-16 days to prepare for retail trade-in.

Reducing the time spent on tasks in the reconditioning department can relieve auto dealerships of all of these pressures affecting both sales and service. First, management should prioritize identifying the work to be done with each trade and purchase. A consistent schedule should also be established and monitored with your own in-house technicians and external contracted vendors. They must do this work effectively and be held accountable. Use all the data gathered from the workflow and make any necessary adjustments. As part of vAuto, iRecon has the tools and solutions to help auto dealerships master these strategies.

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