Used Car Preps

[birch3x]

I'm wondering what the average amount other dealers spend on used car preps. I've found that new tires and a solid check-over to bring higher grosses and happier customers. Repeat and Referrals are the name of the game now, and this works for us. Obviously, older and higher mileage cost more in the shop, but I'd like some opinions on thi$.

[CarguyCO]

Too much....

and our service department loves to put $90 wipers on the car...plus every car gets "certified".....

Sorry that isn't constructive....please disregard

[CJDman]

I probably average $700/car. We fix everything and perform most services for mileage. Always put on tires if questionable. Fix dents, scratches, completly detail. The sale is easier if you don't have to give excuses. As a dealer, you make money in the shop and get your techs used to looking for everything. It also gives your shop motivation to give your used cars priority when needed.

[SHACOS]

Lithia had a substantial checklist for used car preps that weren't going to be manufacturer certified. If it didn't meet minimum criteria, it was replaced. I'd say the average used prep included tires, oil change, wipers, buff, etc and totaled about $500. Typically, nothing over $1,500 was spent and that car was sent directly to the auction.

[CarguyCO]

edited>>>>>>

[CarguyCO]

This isn't in AREA 51 is it?

[ssdd]

Originally Posted by CJDman

I probably average $700/car. We fix everything and perform most services for mileage. Always put on tires if questionable. Fix dents, scratches, completly detail. The sale is easier if you don't have to give excuses. As a dealer, you make money in the shop and get your techs used to looking for everything. It also gives your shop motivation to give your used cars priority when needed.

This is what we do, the cars are easier to sell and the customers don't come back and whine...

[XDCX]

Originally Posted by CarguyCO

This isn't in AREA 51 is it?

Now I'm intrigued, what part of your dealership's recon process needs to be hidden in AREA 51?

[Ralph]

We did the same check on any vehicle we were going to retail. In the NEBC, here in NH we paid about an hour average for check-up...which is way more time than needed, but we held the responsibility on svc and parts if they missed something. I always added svc and parts net and paid the same commission schedule on the pool not the dept themselves...stopped the infighting.

Same kinda chargeback with sales, if the manager decided not to do recommended work from the prep in svc. I always kept on them as one of my biggies...no inter dept haggling. I remember sales and svc and parts director I called into a room. I told them if this wasn't understood one or both of them were going home. They figured it out. Kinda off topic, sorry...but kinda on topic???

[Needhelp]

I have an agreement between the sales manager and serv/parts manager that if a car is reconditioned and then ends up not being retailed all gross profit from service and parts are charged back to serv/parts.

It encourages my sales manager to authorize repairs. Serv/parts know they will get paid at least cost. Rarely has this been an issue with a chargeback due to not having a retail sale.

[XDCX]

Originally Posted by Needhelp

I have an agreement between the sales manager and serv/parts manager that if a car is reconditioned and then ends up not being retailed all gross profit from service and parts are charged back to serv/parts.

Wow, that's an interesting solution - I've never heard of that idea before.

[lsx only]

thats a option i never thought about i love this forum where everyone can exchange ideas.

[birch3x]

Interesting ideas, thanks for the opinions. I feel that spending a few extra bucks to make them right is worth it

[lsx only]

we do ours on a case by case we are small so we can control everything ourselves,lots of times our customers are on a tight budget and we just do the important stuff,it really depends on the car