How to tackle troublesome vehicle preparation

Article author: Marc Thornborough
Position: partnership director, Auto Trader

As any retailer knows, vehicle preparation is one of the most crucial elements in the car-selling process. A well-prepped car is easier to sell, attracts more attention and gives a great reflection on a retailer.

However, vehicle preparation is becoming increasingly more challenging. How much more challenging? Well, in a recent survey of almost 1,000 retailers, we found vehicle preparation is currently among the biggest issue retailers have to navigate.

More than half (51%) of those surveyed said that vehicles are taking longer to prep than they were six to 12 months earlier. Not only that, but the associated costs are rising too. Almost 80% of retailers surveyed are now having to budget more for vehicle prep than they were over the same period, with half spending up to £500 on it – and almost two in five having to spend up to £1,000.

What’s the deal?

One of the reasons vehicle preparation is taking longer is because the car parc – and subsequently retailer stock – is ageing. This situation is caused by the dearth of new cars entering the market throughout the pandemic years, with the result being that the number of sub five-year-old cars at its lowest level in 30 years. The lack of newer vehicles on the market, coupled with rising prices, means that many consumers are also now actively seeking older vehicles, with over 40% of all advert views on Auto Trader in the last 12 months being for cars over seven years old.

As Ben Dewar, general manager at independent retailer Redgate Lodge, highlighted during one of our recent retailer webinars, these older vehicles often require more prep work. For example, they frequently have bodywork issues, which take far longer to rectify than other prep requirements.

The strength of the used car market – and specifically the rapid speed of sale we are now seeing – is also putting pressure on retailers’ prep teams. Craig Vladimirovs, general manager of Car Quay, highlighted on the same webinar that in an ideal world it would have over 80% of its stock prepped on their forecourt and ready to be driven away. However, due to the rapid speed of sale the market is currently enjoying (the average used car took just 27 days to sell in September, which is five days faster a year earlier) means that Craig and his team have to prioritise prepping sold vehicles, rather than those that they have just added to their inventory. This is creating a backlog in prep work that is not unique to Car Quay; Ben said the team at Redgate Lodge were experiencing the same issue.

Ben also points to the backlog of part availability as a challenge, with longer wait times for parts further exacerbating the backlog in prep work.

What’s the solution?

There is no silver bullet to fixing the issues retailers are facing with vehicle preparation. But Ben and Craig agreed that managing customer expectations should be the first step in overcoming the challenge.

Both men also agreed that if stock isn’t online for potential buyers to see then, to all intents and purposes, it isn’t for sale. Therefore, despite the pressures around prepping stock, it’s important to have it all online and available. But, by managing expectations, preparation can be better managed. Craig highlights when a car that may have just come into stock is bought or reserved online, the team will advise the buyer that viewing is best in seven days. This delay is to allow the team enough time to prepare the vehicle and ensure it’s in the best possible condition for the buyer. It also ensure the customer isn’t wasting a journey to see an un-prepped vehicle.

The same rule applies when there are delays in preparation due to a wait time on a required part. Ben and his team will only use OEM quality parts, which can sometimes lead to delays. But, by communicating with the buyer – highlighting the level of preparation being undertaken and offering extras such as a courtesy car – buyers’ expectations can be managed or, in some cases, exceeded.

Of course, sourcing stock that is of a high enough standard can mitigate the need for extensive preparation. But, with an aging car parc and increasing competition for younger vehicles, there will always be instances of stock needing attention before it can be passed on to a buyer.

Ben points to the need to invest in preparation and specifically in bringing in more technicians and equipment to help accelerate the process of modern vehicles. This is something Car Quay is also investing in with the motivations of accelerating prep times, but also bringing costs down. These investments, while costly, have the huge benefit of negating the need for vehicles in need of programming to be taken to a main retailer for the required tech work. Such investments are a big step in addressing the challenges of prepping vehicles and ensure longer term profitability.