What to address to control costs, keep vehicles safe, driveable
From the March issue of UCD
Controlling reconditioning costs and making sure the proper repairs are made to keep the vehicle running and the customer paying is a constant balancing act for dealers.
During a recent 20 Group meeting, BHPH dealers discussed their process, including answering the top reconditioning item that is addressed on every vehicle that comes in from auction, repossession or on trade.
It starts with making sure the vehicle is safe, with glaring safety issues being addressed.
“We look for drivability. We don’t want it coming back the next day or week,” said Robert Ogle of Armor Auto Sales in Austin, Texas.
Ali Supariwala of Georgia Auto Gallery in Liburn, Georgia, utilizes a checklist and test drive of vehicles to identify issues.
“I tell them to be a customer and don’t be a mechanic,” Supariwala said about the test drive during reconditioning. “Our inspection takes about 45 minutes.”
He said his average recon cost is $400 on the vehicles he acquires.
Supariwala and Chris Pollock of Cherokee Auto Sales in Knoxville, Tennessee, agreed that fluids must be addressed.
“The fluids are a disaster waiting to happen,” Supariwala said. “We do a fresh oil change because we don’t know when it was last done.”
Pollock explained that every vehicle receives an oil change with a full synthetic blend and a new oil filter. The cost is approximately $20 per vehicle.
Pollock also inspects the tires and brake pads.
“It’s $20 for a set of pads. Ten years ago, we didn’t look at the brake pads. It’s bad business. It takes an extra 45 seconds to look at the pads,” he said.
On tires, dealers prefer to utilize sources for used tires to control cost but have good life.
The efforts in reconditioning vehicles are not just costs, but minor investments in customer relations and the overall health of the dealership.
“The number one thing in BHPH is keeping the customer paying as long as possible,” Pollock said.
