- Where each unit stands in the reconditioning process
- Which elements have been completed and which are still pending
- Track expended and projected costs
- Where the process is being held up
- Know when each unit will be completed and ready to sell
Why is ReconTRAC an essential tool?
Customers today expect an almost “like-new” quality when purchasing a previously owned vehicle. In most instances, some degree of reconditioning and value-added is needed to match the customer’s perception of quality with your desired selling price. Successful automobile dealers are upgrading the quality and efficiency of their reconditioning processes to sell their vehicles in the least amount of time.
Current Pricing Trends in the Used Car Marketplace
As with real estate, the used car market is sensitive to market demand conditions. In recent months, due to the Covid-19 crisis, most shoppers have been less anxious to venture out to begin shopping for another vehicle. As a result, mid-March through mid-April 2020 saw a sharp reduction in demand and about an average 15% reduction in pricing.
According to one Bloomberg report from late May, prices for used vehicles have since rebounded almost to pre-pandemic levels.
Naturally, during a robust downward demand trend like the recent one, used vehicle dealers who paid only superficial attention to what is happening behind the scenes suffered substantially from having to lower their selling prices or holding excessive inventories.
An earlier Green Cloud blog offers four suggestions to maximize any used car company’s profitability. Four suggestions include:
- Be alert to the retail timeline: time and cost-to-market will erode profitability. Find ways to add value to sell the vehicle quicker.
- Align inventory levels to avoid overstocking with “old” inventory.
- Improve your accuracy in profit/unit projections: control how long and at what cost of each unit. Calculate an accurate total-cost-per-unit.
- Increase your efficiency, particularly in reconditioning.
How Does ReconTRAC Work?
Reconditioning a vehicle to sell may require many phases. To keep costs aligned with your profit plan, you must know where each car is, what department is working on it, when they will finish, and the total cost of reconditioning. You also need to know how long each unit has been sitting, waiting for someone to begin the process.
Management can also perform reviews on finished projects to identify where more or less labor may be needed, who requires more training, and how quality control is being managed for each step.
Monitoring the reconditioning process of each vehicle to move it to the front line as soon as possible is an essential element of success.
Green Cloud’s ReconTRAC workflow monitoring enables management to:
- Monitor workflows from start to finish in real-time to identify departments that may be slowing you down.
- Create accountability for each slowdown.
- Produce understandable “snapshot” reports that help you to move priorities to the right location to expedite the process.
- Access all projects at any time from anywhere with the mobile-friendly capability of Green Cloud’s free mobile app.
- Create new reconditioning jobs instantly to eliminate lag-time by assigning assets to work as quickly as possible.
Check Out Green Cloud’s ReconTRAC Today
Now that you know what we can do for you, here's what you can do for us. Simply contact us at Green Cloud today for a free demonstration of our powerful ReconTRAC software.