Govt View: Easy methods to Optimise Automobile Preparation Processes

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

In accordance with the newest 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 automobiles registered, an uplift of 10,882 models on January 2023, one of the best efficiency for the month since 2020 and the 18th consecutive month of development.

The rise was pushed solely by the fleet market, which rose by 29.9%, whereas personal retail uptake fell -15.8%. Fleets accounted for greater than six in 10 (63.2%) new automobiles 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 may return shortly to the used car market.

With new automobile volumes returning with elevated RRPs, greater used car 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 will price sellers as a lot as 3% a month, which is a major quantity for some quantity websites.

It’s so necessary that sellers concentrate on turning over inventory shortly, which is presently sitting at 31 days, on common. Most sellers are restricted on the variety of hours obtainable to them for mechanical and bodywork, so it is very important have a deal with on preparation. 

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

Sellers can cut back the common 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 verify in and appraisal all the way down to 48 hrs from when a car lands. Having extra inventory to drive away the identical day, can undoubtedly enhance cashflow.

Beneath are some suggestions for sellers trying to enhance their velocity to market by way of quicker preparation:

• Spend time with every individual presently concerned within the preparation course of. All through the car preparation course of – employees typically 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 fact.
• Management the prices. The most effective performing companies preserve a concentrate on the ‘prices’ of every car.
• Perceive the constraints of a division. If the bodyshop is stuffed with inventory automobiles, there isn’t a level in shopping for extra that require numerous bodywork – regardless of the value.
• Solely promote ready automobiles. 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