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Pre-owned Vehicle Best PracticesHelms Brothers Mercedes-Benz Triples Gross Profit with NCM AssociatesFour years ago, Suzanne Cochrane, General Manager of Helms Brothers Mercedes-Benz in Queens, NY was running a dealership where the pre-owned department had a revolving door for managers and showed a loss of $100,000 at the end of that year. Goals of those managers didn’t jive with the goals of the dealership and inconsistent processes hampered consistent growth. The dealership Net to Gross ratio was 7.2%. A Disciplined New Year’s PlanHappy New Year! So what is your plan for the New Year? Are you looking to thrive or just survive? Regardless, let‘s take a moment to set some goals and commit to the disciplined behaviors that will give us the best chance in the pre-owned vehicle business for the coming year. Internet Best PracticesHow much focus and effort do you put into marketing your Pre Owned department on your web site? Many new car dealers have a tendency to treat the pre owned internet site as an afterthought just like their physical lot. Think about it. When you replaced the carpet in the new car showroom did you throw the old carpet out or did you put it in the used car building? Bridge the Gap with Pre-OwnedNow more than ever the franchised new vehicle dealer needs to position themselves in such a way that will allow them to capitalize on every opportunity to do business. This requires intelligent expense controls and structure, along with an awareness of what the opportunities are. Sell More Pre-Owned VehiclesHow can I sell more pre-owned vehicles? Here at NCM Associates we have conducted hundreds of Twenty Group meetings with dealers all over the country and this one question will inevitably come up during each meeting. NCM moderators have heard feedback from literally thousands of dealers and I thought this month I would list the most common solutions that have been shared. Reconditioning Time TrapsOnce you have made a decision to keep a pre-owned vehicle for retail, how long does it take in your store to get it through the shop and on to the display area? Do you track this? An ideal goal would be three days, but if you find it is an average of more than five days, take a hard look at some attitudes and basic processes within your store. Adjusting for Market EfficienciesRecently I was invited to a manufacturer conference in Las Vegas to speak to them about daily pre-owned operations. Sharing the speaking duties with me were some of the best trainers and vendors in the business, all bringing valuable insight and real solutions to the daily process of managing the modern pre-owned vehicle department. Best Practices Revisited“The more things change, the more they stay the same” as the saying goes. Last week one of my fellow Moderators here at NCM shared with me a workbook from a used vehicle management class he attended back in 1979. He was cleaning out some old files when he ran across it and thought it would be interesting to see what has changed in the past 30 years in regard to used vehicle management. Daily Q & A for Service ManagersHow long has your pre-owned vehicle manager been in position in your store? Is he/she the right person for the job? Are they doing a good job? Are they successful? Okay, last question; how do you know? Vital Few or Trivial Many — The 80/20 PrincipleRecently, I was invited to speak to a group of new vehicle dealers that shared challenges in their pre-owned vehicle operations and an expressed desire to get better. I spent the day with them discussing things such as the current and the past pre-owned vehicle market, and the changes in thought regarding today’s retail environment. We focused heavily on departmental metrics, best practices and some proven daily management processes utilized by industry leaders that should be emulated in an effort to improve. more...Buy Here Pay Here Finance Retail Operations Service |
