On average, car dealerships still need over 90 days to resell a used car. Long turnaround times generate costs, yet can be significantly reduced by using the services and tools offered by TÜV SÜD's Car Management business line. We ensure faster turnaround times, and thus boost effective and efficient marketing of used cars. Effective car management is just one of the topics addressed by TÜV SÜD at the IAA between 14 and 24 September in Frankfurt am Main. Further topics at our Stand D04 in Hall 8 include automated driving, electromobility and digital services.
Average turnaround times of 92 days generate costs that are almost impossible to recover on the market. Assuming costs of 20 euros per day, every used car that stands around for 92 days runs up costs of 1,840 euros. This is an enormous cost factor, which will particularly affect the bottom line of large car dealerships with multiple branches. Attractive vehicles are mostly sold within the first 30 days and at the targeted gross return. Unsold trade-ins, by contrast, frequently move ’off the radar’ and may well successively turn into problem cars, resulting in longer turnaround times – and thus higher costs. “Our Car Management services ensure short turnaround times. Based on all customers, our vehicle managers reduce the turnaround costs per used car by an average of about 20 per cent. Further savings can be reaped by process optimisation and quality improvement based on our Car Management services. For example, in a car dealership with 1,000 used cars per annum, savings adding up to over 400,000 euros per year are not unusual”, says Ralf Breisch, Business Line Director Car Management TÜV SÜD Auto Plus GmbH.
Standardised processes save time and money
It goes without saying that information is key for success in the used-car business. Successful retailers need to examine all parameters when buying and selling a used vehicle, and stay informed of the condition of every single car, including turnaround times, valuation assessment reports, repairs etc. TÜV SÜD's Car Management services make these processes transparent, thereby saving time and money. Detailed and, above all, standardised processes when preparing vehicles for sale play a significant role in reducing costs and speeding up resale. One example is the electronic recording of a vehicle's actual condition using a mobile device which wirelessly sends all data directly to the vehicle management system. This has the advantages of faster processes, consistent quality and high transparency.
Example: The TÜV SÜD in Motion (TIM) electronic system. With TIM, motor vehicle examiners work through the valuation checklist while inspecting the car, immediately transmitting the results online to the valuation system. “The valuation report is created as the inspection proceeds, and is immediately available after the valuation”, explains Ralf Breisch. “This saves a lot of time.” The data can also be added to the vehicle file electronically.
Another example National Used Car Management System (NUMoS).
The car management system continuously monitors the current potential of the vehicle stocks at the car dealership by comparing the data of the vehicles at hand and the vehicles sold. The data analysed include the purchasing channel, the brand, the model, the vehicle age, the programmable units, the price categories, and even the selling and purchasing agents. The vehicle data can be integrated into the system via DMS interface or manual data upload. Given this, even branch-related factors can be analysed to ensure the correct distribution of cars, and risk portfolios can be thus minimised by permanent monitoring.
Further positive effects can be delivered by the electronic vehicle file. It actively controls all processes and directly assigns any tasks that arise to the relevant employees. Ralf Breisch explains, “The system also allows the data of all vehicles at hand to be accessed at any time. All data and all documents can be called up directly from any workplace.”
Turnaround times, valuation reports, repair – information is a key success factor in the used-car business. Successful retailers need to examine all parameters when buying and selling a used vehicle and stay informed of the condition of every single car. TÜV SÜD supports its customers by continuously improving and expanding electronic vehicle management services and offering modular service packages.
“Passion. Trust. Future. – 360° Mobility Services by TÜV SÜD” is TÜV SÜD's motto at the International Motor Show (Internationale Automobilausstellung, IAA) 2017, held from 14 to 24 September in Frankfurt am Main The company's stand D 04 in Hall 8 will focus on the full scope of innovative services for the automotive industry. Meet us at the IAA. Further information on TÜV SÜD's IAA presence is available at www.tuev-sued.de/iaa2017.
Press-contact: Vincenzo Lucà