They slow down acquisition, including reducing new car appraisals. High performers understand the drag that packs place on their used operations. PACKS Good: Max 1% of vehicle value / Great: $0 It may require dedicated techs, staying open late and sublet. Top performers solve reconditioning delays. MECHANICAL AND COSMETIC RECONDITIONING TIME 3 days Fast inventory turns maximize high-gross opportunities associated with fresh inventory and drives profits in other dealership departments. Fast turn rates require a commitment by all dealership departments and a focus on efficiencies, including age intolerance. The highest performers turn inventory every 20 days. The inventory turn rate is the amount of in-stock inventory compared to monthly sales. The data is also a foundational element in inventory acquisition and appraisal processes. They use data to dictate when it is appropriate to “go for the gross” and when the window for profit is short, so they need to price aggressively from the start. Top performers embrace the balance between a vehicle’s desirability and its price. In today’s market, a key driving force is the resulting increase in profitability, which releases some pressure on the new-vehicle department for overall dealership profitability. Success in used-to-new ratio requires a combination of acquisition, reconditioning and retailing skills. Used retail unit volume equaling or surpassing new retail volume is a foundational correlation of highly successful used-vehicle departments, assuming the dealership is meeting new vehicle volume goals. USED-TO-NEW RATIO Good 1:1 / Great 1.25:1 Download the Top 12 Used Car KPIs and Benchmarks below or check out the full report here: 2018 Used Car Market Report & Outlook. See how you stack up against the highest performers in the industry. You’re inundated with data and reports, but which metrics matter most? Cox Automotive studied vast amounts of data from thousands of dealers, including the highest performers, to come up with a list of Key Performance Indicators (KPIs) and best-in-class benchmarks.
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