A car yard can sell plenty of cars and still struggle. The money leaks out in small ways that are hard to see without a proper car dealer system. Here are five of the most common in Kenya, and how to close them.
1. Costs that never reach the car
The landed cost of a car is the purchase price plus transport, clearing, duty, repairs, new tyres, detailing and inspection. When those costs are paid from petty cash and never recorded against the car, every sale looks more profitable than it is, and cars get priced too low.
Fix: record every cost on the car's own page. The system adds them up and shows the real profit on each sale.
2. Cars that sit too long
Every week a car sits on the yard it ties up money and loses value. Without a list sorted by days in stock, slow movers hide among the rest.
Fix: review the oldest cars every week; reprice, move or advertise them.
3. Installments that slip
Installment buyers often pay late because nobody reminded them. A few late payments across many buyers is a lot of money waiting.
Fix: a schedule for every installment sale, a list of what is due and overdue, and SMS reminders before each due date.
4. Double-promised cars
A salesperson promises a car to one buyer; another sells it the same afternoon. Someone loses a deposit, and the yard loses trust.
Fix: reserve a car in the system with the deposit. Once reserved, nobody else can sell it.
5. Commission arguments
When commission is worked out at the end of the month from memory, there are disputes and mistakes.
Fix: set commission rates per salesperson; each sale records its commission and payouts are tracked.
Bonus: the hire fleet
Yards that also hire out cars lose money on fuel, mileage and damage that is never charged. Record mileage and fuel going out and coming back, and charge damage and late returns on the booking.
Afritelligence is car dealer software in Kenya that closes all five leaks, and runs on any phone. see the prices.
Frequently asked questions
How do I work out the real cost of a car?
Add the purchase price and every cost paid on the car (transport, clearing, duty, repairs, detailing). A car dealer system does this as you record each cost.
How long should a car stay on the yard?
It depends on the car and price, but review anything over 60 to 90 days every week.
Can the system stop a car being sold twice?
Yes. A reserved car can't be sold to someone else until the reservation is cancelled.
Can I track commission per salesperson?
Yes. Set a rate per salesperson; each sale records the commission and payouts are tracked.
Does it work for hire cars too?
Yes. Bookings record mileage and fuel out and in, and damage or late charges go on the booking.
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