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Lingo hangs
everywhere around us. Behind every detail lies a technological tongue
twister and behind every five-syllable word is it’s one-syllable
meaning. Pre-owned means used and e-commerce is another way to say
online business, but there’s one pair of terms that might not be so
clear. Is certification just
reconditioning under another hide?
Some say certification and reconditioning are different degrees of the
same service while others shake their heads and disagree and maybe
concede that the two might be cousins.
The questions to consider are many. How
has certification’s recent surge of success impacted reconditioning?
How, if at all, are they integrated? What does the future of
reconditioning look like? The
first thing to consider is the technical side – the lingo. Bob
McDevitt, senior vice president of sales and operations for ADT
Automotive, is one who believes the two words are one.
A Higher Level
“Certification is
just another level of reconditioning, another differentiator,” he
said. “One probably enhances the other, but it really started out with
cleaning cars.” McDevitt said
technicians then started fixing dents and the problems under the hood.
That’s when certification took reconditioning to it’s current height,
he said – when reconditioning started including mechanics.
“We strongly believe in the total
reconditioning of a vehicle because it has a bang for the buck, and
it’s another differentiator for those selling them on lots,” he said.
Another term used to thread this needle is
“upscale reconditioning.” Jason Zimostrad, vice president of sales and
marketing for The Paint Bull, a Michigan-based paint service and
training company, says it’s a sign of the times.
“Years ago, reconditioning was, ‘How can
we polish it and make it look good?” he said. “Now it’s a matter of
perfection, competition and rising standards.”
Reconditioning and appearance departments
have walked a long road since the spit-shine days, when it was a
matter of cleaning a car before sliding it onto the showroom floor or
taking care of it after you buy it. Today it’s a multimillion-dollar
service that everyone – dealers, vendors, auctions and manufactures –
has explored. Toyota is one of the leading manufactures in the
reconditioning and certification fields, and it also takes the
brother-sister approach. “We almost
use the words as synonyms,” said Randy Rankin, Toyota’s national
retail support and compliance manager. “To us, certification is
reconditioning a car to a customer’s standards.”
But Manheim’s vice president of
reconditioning services, Jamie Porter, said the two were related but
had no direct connections. From the
Driveway to the Auction Lane
several factors had to come together to bring so many industry
heavyweights into reconditioning services. It started as routine
maintenance and care, something you do at the last minute or in your
spare time. Something to add a little sparkle to the finish. As late
as the 1970’s, consumers owned their cars only about 4.9 years, and
while it was successful, the industry wasn’t quite burgeoning.
But come the 1980,
the market started changing, independent companies started offering
it’s services, and dealerships started looking for services outside
their doors rather than in-house.
“We started about 1980, and at that time, we sensed a movement
coming,” said Bud Abraham, whose Detail Plus Car Appearances Systems
offers detailing, equipment and training to auto dealers.
Reconditioning took off with rising auto
prices in the 1980s, financing expanding soon afterward and consumers
hanging onto their cars longer. Abraham said the average auto buyer
keeps a vehicle for nine years, up from 7.8 years in 1990.
How things have
changed.
Last year, Manheim
spent $23 million expanding it’s services in auction lanes. ADT
developed a centralized training program for all it’s technicians. And
technology has brought innovations like Paintless Dent Repair (PDR)
and hot-water extraction to the forefront and brought the industry out
of the bucket-and-hose era. “It’s
like PDR, if you go back two years and take a look,” McDevitt added.
“And now it’s a way of life today. It’s much more effective using
Paintless Dent Repair than bumping it out and painting it, small
repairs so to speak.”
Today’s Standards
Some manufacturers
see reconditioning and certification so closely that they combine
them. Toyota’s Certified Used Vehicles program is such a program, and
it includes a rigorous reconditioning program with five basic steps:
--Mechanical. Submit
every vehicle to the 128-point inspection and standard mechanical
tests.
--Appearance. Make
sure the vehicle is dirt- and scuff-free.
--Appearance.
Repair. Smooth over dents and dings to ensure quality, using paint
touch-up, PDR and other services.
--Point-of-Sale
Materials. Make sure certified vehicles are properly labeled and
marked for sale.
--Segregate certified
from non-certified vehicles to establish them as a different and
better brand name.
Toyota does not
recondition and certify it’s own vehicles; it’s franchised dealers do.
Toyota, however, sets the standards.
“We expect one year old cars to be not
prefect but pretty dag-gone close to it,” Rankin added. “We ask
customers what they expect.” The
major auction chains – ADESA Corp., ADT and Manheim – all have
reconditioning lanes in most of their auctions. In it’s expansion in
the last year, Manheim added seven paint and body shops to it’s
auctions, creating 258,000 square feet and 14 new lanes. It added
seven detail shops with 42 lanes, each capable of moving 50 vehicles
per day. Manheim also opened seven mechanical shops with a total of 68
bays. “With certification, you’re
checking not only the condition; you’re checking the mechanics,”
Porter added. “We’ve invested into new shops this year and last year.” |