We recently completed a regional NCMi® training workshop in Washington, D.C. titled, “How to Make the Phone Ring and the Door Swing in YOUR Used Vehicle Department.” One of the class exercises was for the attendees to complete a checklist to determine if they operated a “World Class” used vehicle department. Following are the questions that resulted in the most productive discussions: 

• Is the Daily Trade-Walk discipline being diligently followed?

• Is the average reconditioning cycle time being maintained at 72 hours or less? Is a Pre-Display Checklist being utilized when the sales department accepts the vehicle?

• Is the Stock-Walk process part of your daily discipline?

• Do you have a realistic Hard-Turn Policy? Are vehicles normally cashed within the period specified in the policy?

• Is your pricing policy clearly defined and understood by all sales department personnel? Do you publish and present both the Retail Price and your Every Day Value Price? Is there a significant difference between these two prices, indicating that the vehicle has already been substantially discounted? Is our Every Day Value Price exactly the same as that which we are advertising on the Internet, any direct media, and as recorded in the DMS? Do you measure your Price-to-Sale Gap? Is your average Price-to-Sale Gap less than $500?

• Are compelling descriptions, that “sell the sizzle…not the steak,” being written for each vehicle immediately following the Trade-Walk?

• Do you have a well-developed and easily-understood Unique Selling Proposition (USP) for your used vehicle operation that sets you apart from the competition? Is your USP effectively communicated? (Both on your website and on third party classified used vehicle websites to which you subscribe?) Do all salespeople have the USP properly scripted, and can they effectively present the USP via email, telephone, and face-to-face?

• Are your salespeople 100% required to present the contents of the Value Folder before a manager will desk the deal?

• Do salespeople understand and know how to present comparative pricing on each vehicle?

• Does your front row effectively “speak to the street?” Are the vehicles in your front row rotated at least twice each week?

• Do you have a sufficient number of sales consultants? Are you continually and aggressively attempting to recruit and employ potential sales professionals?

• Have you clearly defined, documented, and communicated your used vehicle department expectations to both sales managers and sales consultants?

• Does your sales department have a disciplined culture that forces salespeople to generate their own appointments?

If you answered “yes” to all of the above questions, chances are you are on your way to becoming a world class used vehicle operation. If not, we can provide help in taking your used vehicle operation to the next level. Check out NCM’s 38 in 8 program or sign up for the NCM Institute’s Principles of Used Vehicle Management courses.  Call us at 866.756.2620; we’ll listen and recommend a solution that’s right for you. We speak fluent dealership. Welcome to the conversation.