It’s not unusual for dealers to have used cars backed up in their reconditioning operation.
Depending on the size of the dealership it could be anywhere from 4-5 units to 25 units. We all know the longer a car sits the more difficult it is to make a profit on it.
Dealers are quick to recognize the problem but as a rule they’re not very quick about coming up with a resolution for it.
There are only THREE CHOICES:
- Keep doing what you’re doing and let the frustration continue.
- Pay big bonuses to your techs to work late at night and/or weekends and get caught up. (It’s worth every penny if they are willing to do it.)
- Send them up the street
#3 goes against everything you’ve been taught by your 20 group and all those who came before you. I don’t need to list the reasons why we want to keep everything in house; you already know what they are.
But sometimes you as the GM or Owner operator must make a big boy or big girl decision and “get it done.”
You make money selling used cars.
You make the most money selling fresh used cars.
You cannot accept letting them sit until your service department gets around to getting them done.
Remove the obstacles. That’s all I’m gonna say, Tommy Gibbs