From the October issue of UCD
By Brad White
Your staff works hard to close a deal—getting a car sold and financing approved to put a customer on the road. But when that vehicle returns less than 30 days later, it can derail collections in a buy-here, pay-here (BHPH) dealership and complicate the customer relationship.
While some comebacks are unavoidable—these are used vehicles, after all — every return carries a cost. A dealership selling 100 vehicles with a 10 percent comeback rate may still be profitable, but each unit that returns adds expenses in labor, parts, collections, and reputation. Reducing these early returns is crucial to dealership success.
The first step in managing 30-day comebacks is developing a detailed tracking system. Don’t just count how many vehicles return; analyze why. Are repairs tied to one recurring issue, or are they isolated, one-off failures like a water pump? Detailed information provides the insight needed to prevent patterns from repeating.
The reconditioning process is the foundation of comeback prevention. A consistent pre-recon inspection ensures vehicles are safe and reliable before being placed on the lot. While the goal isn’t to rebuild every car, overlooking mechanical issues is costly. If a vehicle has significant problems that aren’t worth fixing, it should be rejected through arbitration early.
Once a car is on the lift, technicians must go beyond the checklist. For example, if a CV joint shows signs of wear but isn’t flagged, it could break soon after the sale—forcing the dealership to pay for towing, repairs and also lose customer confidence. Careful inspection at the start can prevent those avoidable costs.
Every vehicle should undergo a thorough test drive after repairs. This final step helps ensure that issues are identified and resolved before the car hits the front line. Skipping it often leads to the exact kind of quick comeback that undermines efficiency.
Even with the best recon process, some issues will still occur. This is where the sales team plays a critical role. Clearly explaining the dealership’s limited warranty—if one is offered—helps manage customer expectations and protect relationships when a repair is needed shortly after purchase. Customers who feel informed are more likely to remain cooperative and satisfied.
The ultimate goal is simple: keep cars on the road and customers paying. Every comeback costs money somewhere—whether it’s parts, labor, time in the shop, or interruptions to collections.
By tracking comeback data and using it to guide buying and recon decisions, dealerships can limit avoidable costs, protect customer relationships, and improve overall performance.
