Government View: The right way to Optimise Car Preparation Processes

Chris Barrett, managing director of vAutoStock, explains why it’s so essential that sellers concentrate on turning over inventory shortly

In keeping with the most recent 2024 outlook from the SMMT, the brand new automobile market is estimated to complete total quantity of 1.974 million models. The primary month of the 12 months noticed 142,876 new vehicles registered, an uplift of 10,882 models on January 2023, the very best efficiency for the month since 2020 and the 18th consecutive month of development.

The rise was pushed totally by the fleet market, which rose by 29.9%, whereas non-public retail uptake fell -15.8%. Fleets accounted for greater than six in 10 (63.2%) new vehicles registered, up from simply over half (52.7%) final 12 months.  What we will’t predict is that if these are brief cycle fleet registrations that can return shortly to the used automobile market.

With new automobile volumes returning with elevated RRPs, increased used automobile costs are right here to remain. What has additionally returned is the month-to-month e-book drop we at the moment are seeing. This could price sellers as a lot as 3% a month, which is a big quantity for some quantity websites.

It’s so essential that sellers concentrate on turning over inventory shortly, which is at present sitting at 31 days, on common. Most sellers are restricted on the variety of hours out there to them for mechanical and bodywork, so you will need to have a deal with on preparation. 

On common, there’s a delay of two days earlier than a automobile is booked in for any work. Delays are sometimes attributable to ready for elements that might have been pre-ordered, or a automobile being held in a single a part of a preparation course of while one other individual/division may very well be engaged on it.

Sellers can scale back the typical velocity to on-line considerably with the suitable processes in place. For instance, some sellers have reported a drop from 11 days to 6 and test in and appraisal all the way down to 48 hrs from when a automobile lands. Having extra inventory to drive away the identical day, can undoubtedly enhance cashflow.

Under are some suggestions for sellers seeking to enhance their velocity to market through quicker preparation:

• Spend time with every individual at present concerned within the preparation course of. All through the automobile preparation course of – workers usually full duties they suppose are both legacy, or just not required and a waste of time.
• Measure your preparation time. Set your goal preparation time and introduce ongoing monitoring. Typically sellers haven’t any measure, or the measure set, doesn’t correspond to the truth.
• Management the prices. The perfect performing companies keep a concentrate on the ‘prices’ of every automobile.
• Perceive the restrictions of a division. If the bodyshop is filled with inventory automobiles, there isn’t a level in shopping for extra that require plenty of bodywork – irrespective of the value.
• Solely promote ready vehicles. If automobiles are absolutely ready earlier than they’re offered, this can save time for the gross sales staff.

The vAutoStock platform can present sellers a transparent low-impact on the gross sales staff by way of time. 

Chris Barrett is managing director of vAutoStock