In this blog post, we present to you our car dealership’s guide to auto reconditioning. This is perhaps the only guide to auto reconditioning you’ll ever need, so do take time to read the whole post.
We all need some guidance at some point. No matter how good you are with managing your business, there will come a time when you need someone – or something – who can show you the ropes.
When it comes to fast-paced automotive technology, you have to always keep up – or you will be left behind. And one of the most tech-demanding and intricate aspects of car dealerships is auto reconditioning. Not to mention, it is also the most crucial.
All used vehicles for sale must undergo a thorough inspection, assess them, and mark them if they’re suitable for sale or if they need more work. For these reasons, it’s a no brainer that all car dealerships must take auto reconditioning seriously.
That said, all used car dealerships may have an idea of what auto reconditioning is. Still, not all dealerships don’t know how to make it work to their business’s advantage. And with that, here is a guide we created for car dealerships to learn more about auto reconditioning. Please note that this is also an excellent post for car dealerships who plan to provide auto reconditioning services. Car buyers can also learn from this post.
Let’s get to it!
What Is Auto Reconditioning?
Let it be known that auto reconditioning shouldn’t only be important for car dealerships. It should also be necessary for all car owners out there. But let’s talk about that later.
Auto reconditioning is the process in which a vehicle must undergo several intensive mechanical check-ups. In a typical setting, auto reconditioning experts will check every corner of the car – from under the hood, the body, the interior, down to the bottom parts. If the recon experts find any repairable flaws, they will report and fix it when they can. If some of the errors they found are too hard to fix, they just list it down. Once the check-ups are finished, the recon experts will compile all the gathered data and create a vehicle condition report that looks like this one right here.
Some of the vehicle’s flaws recon experts report include mechanical errors, minor scratches, minor dents, seat stains, broken AC system, and broken lights, to name a few. Several auto reconditioning companies grade their reports so that buyers will have a better idea if a vehicle purchase is worth their money.
The last step of the auto reconditioning process is when the recon experts will start detailing the vehicle. This is the time they make the car look as brand new as possible. As a result, it will make the vehicle more sellable and attractive to the customers.
Why Is Reconditioning Important?
According to the vehicle valuation site Kelley Blue Book, the average price for a new car for 2020 is $33,000. This is lower than the average new car price for 2019, which is $37,000. On the other hand, a Poynter article states that the average used car price in the US last July 2020 is $21,588. That’s more than a $700 increase from June. According to the same article, the automotive website Edmunds stated that this increase is an unprecedented shift. Usually, a decrease is expected during this time of the year due to depreciation. Needless to say, we can all agree that the global health crisis has something to do with the spike in used car prices.
So, where is the importance of auto reconditioning in those numbers? If you check the rise of the used car prices, it may look like bad news to all car buyers. Although it may be true, you can look at it from a sales perspective as a car dealer. A higher price means more sales. Although that may sound capitalistic at best and devious at worst, you have to understand that’s just pure business. The takeout here is you have to do away with the opportunity being presented. And what other way to optimize the opportunity by providing the best used vehicles? That said, an auto reconditioning can help you with that.
Another benefit of auto reconditioning which car owners can take advantage of goes without saying. Auto reconditioning further the car’s longevity. They will able to use their vehicles in prime conditions even after years of driving with it. Plus, when they want to sell it in the future, it will still have a higher value and cash more from it.
Sell Outstanding Vehicles
Friendly competition is good for business. For car dealerships, the metric for the competition is the number of sales each month. Although there are several ways to close a lot of car sales, the vehicle’s good condition is arguably the most critical factor in completing a lot of sales. Again, this is something that auto reconditioning can achieve.
It’s good that most used car dealerships take used vehicles to an inspection station before putting them out for sale. Although inspecting vehicles is already common among most car dealers, this thing can’t be said the same with private sellers. And this is what makes car dealers stand out – selling used vehicles in excellent condition.
This goes to show the inspections are a sure investment. Because of auto reconditioning, used vehicles can be sold at premium rates. Through the reconditioning process, a used vehicle value will go even higher. Back in the day, these prices were frowned upon by buyers. But with the value that buyers are getting, the market seems to understand. This will interest them more in considering getting a used vehicle instead of getting a new one.
Is There A Difference Between Auto Reconditioning And Auto Detailing?
Now, you may have heard the term auto detailing before. And you’re probably wanting to know if there’s a difference between auto detailing and auto reconditioning. To keep it short, yes, there is a stark difference. But, if you want to know what these differences are, read further.
We’ve slightly mentioned it above, but auto detailing is the process of cleaning and preserving vehicles in its most pristine state. Unlike auto reconditioning, where everything is mechanical and based on numbers, auto detailing is more on the process’s art aspect. Simply put, auto detailing is like a carwash but 100x better. While carwash is just a come and go thing, auto detailing is a painstaking task that takes time and should be done by hand. Also, car detailing improves the interior and exterior appearance of the vehicle.
Some may dismiss auto detailing, but it also has many benefits and is also considered a wise investment. For one, a shiny brand-new-ish used vehicle can spike up the value, making cars more profitable than ever.
Auto detailing also protects the look of your car. As a car owner, you don’t want to have scratches and dents on your vehicle – but at times, these are inevitable. So when these scratches and dents happen, auto detailing can fix those.
Also, car detailing maintains the color of the car. As cars get older, the color of their coats fades gradually. Prevent this from happening by way of auto detailing and using the right type of clear coat protection.
The bottom line, auto reconditioning preserves a car’s performance while auto detailing mainly preserves a car’s appearance.
What Is The Cost Of Auto Reconditioning?
As previously said, reconditioning is an investment that has a potential return. However, just like with any other investment, it can still be a financial liability if you don’t spend it wisely. You should allocate the right budget for reconditioning and monitor the processes so you would be able to correctly schedule cars for selling. But what is the ballpark figure?
On average, car reconditioning costs should be more or less a thousand dollars. Although it can go higher depending on several factors. One of the factors is the demand Of the make and model. Usually, when a sports car or a luxury car is being reconditioned, inspection stations would usually fix it at a higher price tag .
Reconditioning Practices For Car Dealers
When you have an auto reconditioning business, and you want to improve your services, here are some practices that you should know. If you have a car dealership, you can still use these practices as a stock knowledge when you bring your vehicles to an inspection station.
Have A Reconditioning Team Made Up Of Recon Experts
Auto reconditioning is a job that should be taken really seriously. One mistake can be your business’s potential demise. So don’t settle for less and hire only those that have the recon expertise and experience. As a rule of thumb, car buyers are advised to only get vehicles that are pre-inspected by recon experts. So, take your time to ask a lot of questions before hiring and letting them do recon work. Take a few minutes to do some online background check. This way, you’re not only saving money, but you’re also saving a lot of time.
Faster Turnaround For More Profit
The process takes days to complete, but that doesn’t mean that it’s okay to take loads of time to finish reconditioning a vehicle. The best common practice for auto reconditioning is within three to four days. However, these can also go longer, depending on the car’s condition. As much as possible, never go beyond four days as this can really impact turn rates and income. Car buyers would always ask for an Estimated Time of Arrival (ETA) to know when to expect the vehicles to be put up on sale. Under promise and over deliver is a good practice.
Offer Discounts To Wholesale Reconditioning
It’s always good to provide more to attract more business. So when a private dealer or another dealership asks you to recon a bunch of their vehicles, it’s best to provide discounts. This way, you would be able to grow a handful of loyal customers. In turn, they will also influence other car dealerships to do business with you (which is relatively fast nowadays, thanks to social media).
Get Better Vehicles Instead
To reduce the cost of auto reconditioning, you can always opt to buy better vehicles. When you buy cars that don’t need a lot of work, you would be able to reduce recon expenses, save a lot of time, and sell the car faster. How can you determine if the vehicle is the right one to buy? By simply checking out an auto condition report first before buying.
Use A Recon Tool App
Lastly, you can download a DMS software recon tool that can save you a lot of time and money. A useful reconditioning software tool allows you to pull up different vehicle reports, provide appraisal rates, and let you sell vehicles in their own digital marketplace platform. You can find one by clicking on the link provided.