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#AskNCM: Managing Dealership Expenses

Written By: NCM INSTITUTE
POSTED ON November 14, 2019

Rising business expenses is something all business owners have to deal with, regardless of the industry. In retail automotive however, the cost of doing business can quickly spiral into some staggering numbers if you don’t have a firm grasp on the processes and procedures of your dealership. Here at the NCM Institute, we help educate our students in all areas of dealership operations on the importance of keeping within budget while overperforming in service. We asked a few of our NCMi instructors to discuss some questions submitted by students on expense control.

How Do I Reduce My Loaner Vehicle Expenses?

The power of a positive customer experience can reward your dealership in multiple ways. With the right tools and processes in place, loaner car programs have the potential to improve customer experience scores and provide you with a new source of revenue. Expert Steve Hall discusses a few key processes your dealership should be following to reduce expenses in your loaner vehicle program.
With 25+ years in the industry, Steve has held management positions in all areas of auto dealership fixed operations, including service and parts director, and vice president of fixed operations for more than 19 stores.

 

How Do I Manage My Dealership Expenses?

Establishing reasonable budgets for all dealership departments can sometimes be a struggle, but keeping them in check so your overhead doesn't outweigh your profits can be even harder. NCMi instructor Rick Wegley was asked to shed some light on how dealers can better budget within their business.

Rick has 30+ years of experience as a fixed ops specialist. Prior to joining NCM, he provided dealerships on-site operational and financial assessments, identified opportunities for improvement, and helped dealers create and implement business plans for process changes.

 

How Do I Control My Shop Supply Expenses?

Every dealership is thrilled with a consistently busy service department. However, the cost of supplies needed to keep things running in this department can sometimes be forgotten in the quest for additional ROs. In this recent AskNCM video, NCMi Instructor Steve Hall, discusses shop supplies and how you can control this oft-forgotten expense.

 

Are You Looking to Keep Your Expenses on track?

Striving to improve is critical to every dealership’s long-term success. It doesn’t matter if your experience is working inside the accounting department, or out on the floor closing deals, maintaining your expense is key to growing and gaining market share.

Looking for a more hands-on experience? Check out the NCM Institute's full training schedule.