Presidio-NCM’s recently released Average Dealership Benchmark Report for 2024 shows that used car profitability has dropped by over 25% year-over-year — but it’s not all bad news.

Especially if you’re in Fixed Ops.

While dealerships across the country have spent the past few years grappling with declining variable gross margins, Parts and Service departments have proven themselves to be reliable growth drivers.

In fact, according to CEO of NCM Associated Paul Filetti, we’ve got plenty to be excited for: “It’s encouraging to see signs of dealership profitability starting to stabilize after the falloff of the last couple of years. Dealers are now positioned to make even more of a pivot on earnings in 2025.”

This lines up with what we’re seeing across our client base as well. Fixed Ops has continued to play a crucial role in countering the situation for our customers — 70% of service departments now treat reconditioning as a profit center. And, according to a recent study we had commissioned, shops that leverage technology for reconditioning tracking and automation report stronger profit margins, better customer trust, and improved operational efficiency.

By moving on from outdated systems, they’re seizing the opportunity to turn vehicles faster, cut unnecessary costs, and meet rising customer demand.

But not all solutions are created the same.

Integrating a digital platform into your Fixed Ops department is a complex dance with lots of steps, and there are plenty of generic solutions out there that just don’t cut it.

Generally speaking, I can think of three major limitations to these poorly integrated tools. Here’s what you should look out for:

1. One-Size-Fits-All Platforms Miss the Mark

Most dealership software focuses on either Sales or Fixed Ops, but not both. Many platforms prioritize front-end operations, leaving service and recon teams stuck with outdated, manual processes.

Without a recon-specific solution, teams are forced to rely on workarounds, disconnected spreadsheets, and redundant data entry just to keep things moving. The result? Workflow constraints, lost revenue, and unnecessary frustration.

2. Recon Becomes an Afterthought

If your current system isn’t built for recon, it’s holding your dealership back.

According to our research, mechanical reconditioning, body and structural repairs, and labor costs are among the top reconditioning expenses at the dealerships we surveyed.

While many inventory management platforms offer basic recon tracking, they often fail to account for the real operational complexity of reconditioning, including parts availability, vendor/sublet coordination, labor scheduling, and cost tracking. Left on their own, process inefficiencies in these areas will quickly stack and multiply into days (and even weeks) of lost time and productivity.

Fixed Ops teams need more than a Sales-focused system, or else they end up struggling with operational gaps while Sales teams grow frustrated over delays.

3. Patchwork Solutions Are the Opposite of Efficient

A lot of the dealerships we speak to try to “fix” the gaps in their software by stacking multiple tools together: a DMS for parts, a whiteboard for workflow tracking, spreadsheets for labor management, and a separate system for vendor approvals.

Sound familiar?

But not only do these “solutions” increase administrative burden, they also introduce errors, miscommunication, and operational gaps that slow the entire process down.

Instead of streamlining operations, these disconnected tools force Fixed Ops teams into constant workarounds — and that’s the exact opposite of efficiency.

A System Designed for You: The Repair360 Advantage

Unlike generic dealership software, the solutions we offer at Repair360 are purposely built for reconditioning.

Here’s what our platform has to offer:

✔ Bridges the gap between Fixed Ops andSales by aligning workflows with dealership-wide priorities.

✔ Automates key processes, eliminating manual tracking and reducing admin workload.

✔ Optimizes recon timelines by ensuring that tasks are completed efficiently and with full transparency.

✔ Gives Fixed Ops complete visibility into vendor work, labor allocation, and parts status.

We don’t force Fixed Ops teams to adapt to a system that wasn’t designed for them. Instead, you’ll get a platform built from the ground up around your process to maximize efficiency, reduce costs, and accelerate vehicle readiness.

Are Your Tools Helping or Holding You Back?

Reconditioning isn’t just another step in the process — it’s the key to maximizing dealership profitability.

If your dealership is still relying on generic, sales-first, or disconnected solutions, it’s time to rethink your approach.

Get a competitive edge in used car reconditioning. Get in touch with a member of our Sales team today and see how Repair360 can generate real results for your dealership.