I read a comment recently in one of the other online forums for Used Car dealers. The poster, a dealer principal, wrote: “With reconditioning cost through the roof these days I prefer to buy as ready as possible. I feel my money is better spent on the frontline ready car..”
Really? Of course it’s great if you can score a vehicle where all you need to do is wash it and go, and no buyer should pass on those rare opportunities. But limiting yourself to only those gems can put you behind your competitors and leave money on the table.
If you’re shying away from vehicles that need some reconditioning because of the cost, then you need to take a hard look at your recon process. Reconditioning should be one of the most profitable parts of your operation, allowing you to acquire at lower costs and selling at higher margins. When you buy a frontline-ready vehicle, chances are that someone else has done the reconditioning, and is marking up your cost in the process.
So don't walk away from profit. Improve your reconditioning operation to become more efficient and you'll sell more cars at higher margins. Check out the full article here.