Stop Overlooking Your Fixed Ops to Help Drive CPO Revenue

1. Stop Overlooking Your Fixed Ops to Help Drive CPO Revenue Brent Wolsey

2. Welcome • Brief Introductions • Brent Wolsey | AutoPoint • AutoPoint, a Solera company • Formerly MPi • We are the leaders Fixed Ops business process solutions • The AutoPoint Platform™ improves CSI and CSR, with: • Process development and implementation • Vehicle inspection technology • Management reporting • Training and Consulting • Increases capacity through efficiencies while increasing profits

3. Used Car… THEN

4. UsedRetail… TODAY

5. Swinging Pendulum • GM, Ford, Chrysler, Mercury, Subaru, Kia and Mazda are experiencing upswing • Toyota and most luxury brands are maintaining strong CPO retail sales • Used vehicle popularity on upswing • Automotive News and Auto Remarketing report certified pre-owned has increased 11% in Q1 2014.

6. Swinging Pendulum • CPO Vehicles are very profitable today • The average unit is twice what they were in 2012 • August 2014 premium were $2,842 • They’ve been above $2,800 for the past 14 months!

7. Tout to the Value of your Used Vehicle Recon Process • Promote your Used Car Reconditioning process • OEM Trained ASE Certified Technicians • Incorporate signage in service area • Introduce Master Techs on wall or in person • Include it in your advertising

8. Tout the Value of CPO Vehicles • Emphasize the work which has been performed • Value in use of OEM parts in all certified pre-owned • Value in work which will not need to be done after the purchase

9. Defining Product Offering • At least 3 (if not 4) levels of used vehicles • CPO = Your Franchise, low miles and newer model year • Platinum = Non Franchise vehicles in your class • Gold = Older/Higher mileages vehicles which are still quality and you can stand behind • Silver = “As is” vehicles The levels MUST be clearly defined

10. How can Fixed Ops Dept. Drive Revenue for Used Car Dept? • Decrease Reconditioning time • Dedicated Recon staff • Use Recon software systems

11. Dedicated Reconditioning Staff • Service Technician who doesn't skimp or gouge • Provides consistent and quality results • Minimizes Come Backs, costing you profit via your Policy $’s Reduce Recondition Cycle Time

12. Dedicated Reconditioning Staff • Service Advisor who oversees all units • Empowered to Approve work within guidelines • Becomes watchdog for issues and eliminates road blocks • Becomes your Advocate Reduce Recondition Cycle Time

13. Decrease Reconditioning Time • Use a Reconditioning management software solutions • Provides visibility into the process • Facilitates efficient communicate • Outputs supporting documentation Increase Proficiency & Accountability

14. How can Fixed OpsDrive Revenue for Used Car? • Decrease Reconditioning time • Provide transparency and value for the customer • Be proud of the dollars you’ve put into the vehicle

15. Increase the Value of Used Vehicles • Provide a professional Reconditioning report • Indicate what was inspected • Indicate what was & wasn’t repaired and why it adds value (or didn’t raise the cost of the vehicle) • “Condition” your customers – this is the level of service they should expect from Dealerships Set your dealership apart from the rest!!

16. Increase the Value of Used Vehicles • Report provides full Transparency • Disclose multi-point inspection findings • What was/wasn’t serviced • Provide customer a report when comparison shopping • Disclose dealerships investment to show Value • Don’t hide Value, demonstrate VALUE Set your dealership apart from the rest!!

17. How can Fixed OpsDrive Revenue for Used Car? • Decrease Reconditioning time • Provide transparency and value for the customer • Be Fixed Ops best customer

18. Be Service’s BEST Customer • The best customers get the best treatment • Pay full CP rate for your reconditioning work • They have Ability to help you • They have a Desire to help you Increase your Leverage

19. Increase CPO Sales • Value of Increased Turns Assuming: 50 Units per turn $1,800 $ profit per unit 23 Days Lot time* 8 Days Average Recon time Increase by reducing Reconditioning Time to 5 Days $113,536.87 (Annually) $9,467.41 (Monthly) *Source: CNW

20. Happy CustomersReturn • Full Transparency & Disclosure = No surprised (or angry) customers • Happy customers utilize your Service Center • Results in positive experience and reinforce the customers desire for future used vehicle purchases • Quality job = Quality reputation amongst Customers & Community

21. To Review • Clearly Define your “Levels” of used vehicles • Be Services Best Customer • Empower your Fixed Ops team within these Levels • Utilize Technology to streamline process • Give your Customers the facts and minimize policy spending & profit erosion

22. Final Thoughts • Customers who are happy and satisfied with one Used Vehicle purchase are more likely to come to you for another. • Your Fixed Ops Department can work with Sales and greatly contribute to your Bottom Line! When setup right, Fixed Ops will help you achieve your goals!

24. Thank you! Brent Wolsey | CPO Product Marketing Brent.Wolsey@autopoint.com 801.836.9191 | www.autopoint.com