Options to ensure a 60 day turn

The following exerpt is from Auto Dealer People and I thought you would find it interesting.

What are some options to ensure a 60 day turn?  Posted by David Ellis

There is one used car mgr. & two sales mgrs. The u.c.m. is in control of aquisition and w/s, but it’s being suggested that all 3 mgrs. participate in a +60 day penalty. I have been charged with drafting a plan. Thanks in advance for the input.

Comment by David Ruggles

vAuto!

Comment by Bill Green

I would agree that vAuto would afford a tool to facilitate getting better turns that 60 day. We are turning on an average 12-15 annual turns a year with stocking about 200 vehicles at all times. VAuto has made a huge difference in how we approach this issue, and has at the same time given our VP of Inventory a way to monitor and manage daily.

Comment by Dale Pollak,

Thank you for your support of vAuto. In reality, however, I believe that fast and proper turn will ultimately only be achieved through the strategy of Velocity Management. As many of you know, velocity is the set of conditions (paint to pixels) that if in place, will allow a dealership to achieve fast turn with profitability. In other words, fast turn itself is not the path to profitability, but rather it needs to be done in such a way so as to allow for total gross to far exceed that of traditionally managed dealerships. To this extent, success comes through a proper strategy well executed, and that means a combination of people, process and tools.

Now with respect to the specific question, as I understand it… The responsibility of fast turn belongs not to the just UCM/WS manager, but rather to every manager in the dealership, yes even including those in fixed ops. Everyone should share in the pain or gain associated with inventory turn. Also, remember that if any properly reconditioned vehicle can’t be retailed in 30-40 days, it can only mean one of two things. Either the manager didn’t know how to price it, or they weren’t prepared to price it as it needed to be. This is the retail reality of the internet era. I hope this helps.

Thanks