Improving Auto Auction Profits Through Detailing In UK
In addition to new vehicle sales, used vehicle sales and service, F&I, ancillary sales, accessories, and auctions are part of the revenue and margin package for most GMs and principals.
Car auctions are a traditional source of income for dealers large and small…and a proven source of inventory. But some dealers take the time to maximize the appearance of the auctioned vehicle. You can also avail the benefits of dealership reconditioning software via prepmyvehicle.com/ to buy a car.
And while this may seem like a minor inconvenience to the details and preparation of stores and inventory for auction, unofficial studies show that for every dollar spent, the return on investment is 3-4 dollars – to some degree.
While there is little scientific evidence for this, empirical evidence is everywhere. Think about it: In larger auctions, many strips have prep, detail, and wash areas. The theory is that the more attractive and clean the vehicle, the higher the asking price. This may not apply to online auctioneers, but private dealers continue to support this assumption.
For larger merchants, it is best to outsource the service in-house or on-site. This reduces costs and provides sufficient time for additional repairs – minor PDRs, paint scratches, minor interior repairs, wheel and wheel restoration and general repair maintenance.
Many outsourcing companies offer a variety of services or can hire the best local talent to maximize services while keeping costs as low as possible.
When preparing for an auction, keep in mind that automated breakdowns and minor fixes can provide a real return on investment for your business.