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Glossary

What Is Reconditioning?

Everything that happens to a used car between the appraisal and the first photograph.

Reconditioning, usually shortened to recon, is the work a dealership does to a used vehicle between acquiring it and putting it up for sale: a safety and mechanical inspection, the repairs that inspection calls for, cosmetic work, a full detail and photographs. The cost is added to the vehicle's cost basis, so it directly changes the gross on the eventual deal.

What does reconditioning mean at a car dealership?

When a store buys a car, whether from a customer's trade, an auction, a lease return or a street purchase, the car is not ready to sell. Recon is the process that makes it ready. It ends at a single milestone everybody in the building recognizes: front line ready, the moment the unit is priced, photographed, published and parked where a customer can walk up to it.

Two numbers describe the process. Recon cost is what the store spent, and it lands on the cost side of the car along with what was paid for it, so a 900 recon bill is 900 less gross unless the price carries it. Time to line is how many days passed between acquisition and front line ready, and those days are pure carrying cost, since the car is depreciating and financed while no shopper can find it.

The word travels. People recondition batteries, sports teams recondition rosters, and equipment vendors sell reconditioned units. In a dealership it means one thing only: getting a used vehicle ready for retail sale. A car that has been reconditioned is not restored, and it is not remanufactured; it has been inspected, repaired to the store's standard and cleaned to retail condition.

What actually happens between acquisition and the front line

The sequence is roughly the same everywhere. The vehicle is checked in and a stock number is assigned. A technician performs a multi point safety and mechanical inspection and writes an estimate. A used car manager approves the work, and this is the moment that decides the car's profitability: approve everything and the gross disappears, approve too little and the unit gets returned by an unhappy customer or fails the next inspection.

Then the work happens in parallel where a good shop can manage it. Mechanical repairs and maintenance. Tires and brakes if they are below the store's standard. Cosmetic work: paintless dent repair, wheel refinishing, glass chips, interior repair. Finally the detail, which is the step customers judge the entire store by, and the photographs, which are the step search engines and shoppers judge the car by. Only then does the unit get priced and published to the website and the listing sites.

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A worked example

Say a store takes a three year old crossover on trade at an actual cash value of 14,000. Illustrative figures only. Inspection finds two tires at the wear bars, rear brakes, a windshield chip and a scuffed bumper, and the detail department needs four hours in the interior. The bill comes to 1,250, so the car's cost is 15,250. Priced at 17,995 and sold at 17,500, the front end gross is 2,250 before any pack.

Now change the timing rather than the money. If that work takes four days, the car lists on day five and sells inside the turn target with the gross intact. If it takes seventeen days because the estimate sat unapproved over a weekend and a part was back ordered, the car lists on day eighteen already a third of the way to being an aged unit, and the first price cut arrives before it was ever really for sale. Time to line is the expensive half of reconditioning, and it is the half most stores measure least.

Where reconditioning quietly costs a store money

Four patterns come up again and again. Estimates that wait for an approval nobody owns. Internal work priced at retail rates, which moves profit from the used department to the service department and makes every appraisal look worse than it is. A detail and photo step that happens last and slips first, so cars sit finished but unlisted. And no written standard, which leaves each manager approving a different amount of work on the same kind of car.

Stores that run recon well tend to do three unglamorous things: they set a target time to line and post actual days beside it, they write down what gets fixed on which class of vehicle, and they treat photographs as part of reconditioning rather than as marketing. The dealership reconditioning software page covers how stores track that workflow step by step.

What a reconditioning fee means on a customer's paperwork

Shoppers meet the word in three places. On a used vehicle purchase, some stores show a reconditioning line on the buyer order describing the work done to that specific car, while most simply build the cost into the asking price. On a lease return, a reconditioning charge is the lessor's bill for wear beyond the contract's allowance, which is set by the lease agreement, not by the store. On a rental or fleet disposal, the same phrase covers making a unit sale ready.

What is permitted on a retail document varies by state, and a dealership's own counsel and its lenders set its policy. The plain answer for a customer who asks is the true one: reconditioning is what the dealership spent making the car safe and presentable, and whether it appears as a line or inside the price, it is part of what the vehicle costs.

Where LeadLocate fits around the recon process

Repair orders, technician time and parts stay in your dealer management system, which is where that work belongs. The platform picks the car up at both ends of recon. At the front, trade in capture in LeadLocate CRM scans the VIN, decodes the unit and holds the appraisal photos and the customer record on the same deal, so the car arrives with its history attached. At the back, lot walk and photo intake sends photos from a phone, and Inventory Link publishes the finished unit to your listing site, your embeddable widget and the vehicle button inside every text and email composer the same day it hits the line. The faster a car goes from front line ready to in front of a shopper, the less reconditioning costs you.

Frequently Asked Questions

What is a reconditioning fee on a car?

On a used purchase it is a line some stores use to show what was spent making that specific vehicle sale ready; most stores include the cost in the price instead. On a lease return it is the lessor's charge for wear beyond the contract allowance. State rules and lender policy govern what may appear on the paperwork.

Is a reconditioned car the same as a restored or refurbished car?

No. Reconditioning brings a used vehicle up to a dealership's retail standard: inspected, repaired where needed, cleaned and photographed. Restoration rebuilds a vehicle, usually a classic, well beyond its selling condition.

How long should reconditioning take?

Each store sets its own target and measures actual days against it. The useful discipline is tracking time to line per unit, because every day in recon is a day the vehicle is carried, depreciating and invisible to shoppers.

Does reconditioning cost get added to the sale price?

It is added to the vehicle's cost, which the asking price has to carry along with everything else. Whether the customer sees it as a separate line or inside the price depends on the store and on state rules.

More Resources from LeadLocate

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LeadLocate™ All rights reserved. Other product and company names mentioned herein are the property of their respective owners.

Answers to your questions:

What is LeadLocate?

LeadLocate is an all-in-one lead generation software and CRM platform. We generate in-market sales leads and provide you with all the tools necessary to sell that customer. All of your leads, texts, calls, emails, deals, and files are available in one place, accessible with a single login.

Accepted credit cards: Visa, MasterCard, American Express and Discover
LeadLocate™ All rights reserved. Other product and company names mentioned herein are the property of their respective owners.

Answers to your questions:

What is LeadLocate?

LeadLocate is an all-in-one lead generation software and CRM platform. We generate in-market sales leads and provide you with all the tools necessary to sell that customer. All of your leads, texts, calls, emails, deals, and files are available in one place, accessible with a single login.