When you buy used vehicle inventory for your dealership, those vehicles often aren't quite ready to sell to your customers. At least, not if you want to get the most out of each vehicle and optimize your profits. That's where used car reconditioning comes into play.
Let's break down what used car reconditioning is and why it's essential to your dealership, plus some tips for making your reconditioning process successful.
What Is Used Car Reconditioning?
Used car reconditioning is when car dealerships clean, repair, and upgrade the used vehicles they purchase (via trade-in or auction) to prepare them for resale. It's all about ensuring the car is in the best condition possible to maximize its resale value. Typically, the used car reconditioning process follows these steps:
1. Inspection
The vehicle arrives at the dealership, and the dealer (or reconditioning team, which can include a group of technicians, mechanics, bodywork experts) inspects its condition. They list out any needed repairs and estimate how long they will take.
2. Repair
Typically, the most time-consuming and costly step in reconditioning is completing any necessary repairs. These might be cosmetic (paint restoration, dent repairs, etc.) or mechanical (replacing brake pads or broken engine components, etc.)
3. Cleaning
Next, the reconditioning team washes, deodorizes, and details the car. If there are any non-stock accessories or stickers, the team will remove them during this step.
4. Maintenance, Recall & Warranty Check
The team will also perform preventive maintenance, such as changing the oil. They also typically check for warranty repairs or manufacturer recalls.
5. Final Quality Check
The last step is to inspect the car again to ensure it meets the dealership's quality standards.
Why Should You Recondition Used Cars in Your Inventory?
Reconditioning the used cars in your inventory can make them much more appealing to customers. When Americans shop for used cars, their biggest fear is future repairs1.
Knowing professional reconditioning took place will help shoppers feel more confident about their used vehicle purchases. Your customers might want to know, "What does 'vehicle reconditioned' mean?" so include a brief explanation on your vehicle detail pages.
Reconditioned vehicles that are clean and free of mechanical issues will sell faster2, leading to shorter inventory turnover for your dealership. Customers are also more likely to be satisfied with reconditioned vehicles3, which can help build positive word-of-mouth referrals and encourage repeat customers.
Common Challenges in Reconditioning
For all its benefits, reconditioning does present obstacles. Dealerships often encounter challenges such as:
- Balancing cost and quality: Dealerships walk a fine line between putting more money into the vehicle to improve its condition as much as possible and spending too much to get a good return on investment.
- Inefficiency while moving vehicles through the used car conditioning process: The longer it takes to complete the reconditioning process, the more time those vehicles spend in your inventory — costing your dealership money.
- Unexpected repairs: If you purchase a vehicle thinking it needs minimal repairs only to find out during the reconditioning process that there are significant unforeseen repairs, that's extra time and money spent getting that vehicle ready for sale.
Best Practices for a Successful Used Car Reconditioning Process
So, how do you tackle these common challenges and make sure your dealership's reconditioning process is as successful as possible? Implement these best practices.
- Set up a straightforward process for reconditioning each vehicle your dealership acquires and make sure everyone knows their role in getting cars through the "assembly line."
- Implement clear communication guidelines to reduce misunderstandings or delays between departments.
- Track your reconditioning process, including how much time and money your dealership spends on each vehicle, to help find areas for improvement.
- Avoid purchasing low-quality vehicles that require more investment in reconditioning than they're worth.
- Set a budget for reconditioning each vehicle and stick to it.
Optimizing Your Dealership Inventory, Every Step of the Way
With a successful reconditioning process, you will make your customers happy and drive more sales. But getting the most out of your inventory doesn't stop there.
ACV MAX's inventory management software will help you find the perfect vehicle price point with real-time market analytics. You can also manage your dealership's inventory in real-time dashboards that give you insights into the top sellers, most profitable, and fastest-moving vehicles on your lot. The ACV MAX appraisal tool goes further with its Recon Alert feature, offering insights into the severity and frequency of common vehicle issues.
Schedule a demo today to see how ACV MAX can revolutionize your dealership's inventory management.
Sources:
- Weisbrot, E. (20 March 2020). What Are Americans' True Fears When Buying a Used Car? JW Surety Bonds. Retrieved February 28, 2025, from https://www.jwsuretybonds.com/blog/used-car-survey
- What Used Cars Sell the Fastest? Advantage. Retrieved March 7, 2025, from https://advantage.com/blog/what-used-cars-sell-the-fastest/
- Ogles, M. (14 August 2024). Vehicle Reconditioning: Why It Matters for Owners, and Dealers. Carketa®. Retrieved March 7, 2025, from https://carketa.com/vehicle-reconditioning-why-it-matters-for-owners-and-dealers/
