Most dealers and managers have come to understand that speed is critical when it comes to making money on used cars.
If you are committed to 60 days or less (which you should be), then any days in the assigned life-cycle of a unit when it’s not available for sale is a killer.
The question often comes up, “When does the clock start ticking?” Does it start with the actual day you own it, or does it start when the car goes on the lot/online?
The issues that often come up are the delay in getting vehicles from auction sites and those units we can’t sell for legal reasons such as we don’t have the title as required by law in some states. There are certainly times when a needed part is delayed and/or a vehicle spends weeks in the body shop.
Let me make this as clear as I possibly can. It starts the moment you own it. Period. No exceptions, no ifs, ands, or buts.
If you want to trick yourself by assigning a different date once the car’s online then go ahead; it’s your store you can do what you want. But, what you can’t do is change the math.
It is what it is. It’s a depreciating asset. The clock starts ticking the minute you own it. Do the math. The ROI is going south.
It’s a ticking time bomb. That’s all I’m gonna say, Tommy Gibbs