Centurion Motor Exchange Business Plan — Operating Model

Sourcing, reconditioning, pricing and days-to-sell discipline, and the stock management behind the unit plan.

Section 12 of 28

Operating Model

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Table 12.1: Vehicle process standards

Step	Standard	Control / KPI	Owner
1. Appraise & buy	Pricing-tool valuation, test drive, history, encumbrance and police checks before any offer	Buy price vs tool; GP per unit by buyer	Vehicle buyers
2. Inspect	150-point inspection with photographs; report published with listing	Inspection completed within 24 hours of arrival	Workshop foreman
3. Recondition	Service, safety items, tyres, cosmetic repair, roadworthy, valet	Average recon ≤ R6,500; turnaround ≤ 5 working days	Workshop foreman
4. Price & list	30+ photos, video walk-around, inspection report, price within 2–3% of market median	Listing live within 24 hours of recon sign-off	Stock controller
5. Sell & finance	Fixed price, multi-bank submission, needs-based product advice, signed disclosures	Lead response time; conversion; F&I penetration	Sales & F&I managers
6. Deliver & follow up	Pre-delivery inspection, handover checklist, CRM follow-up at 7, 30 and 90 days	Review score; returns and goodwill cost	Sales manager

Stock cover: target 45 days of forward sales, with a minimum display of 60 units at Site 1 and 50 units at Site 2 so that buyers always have choice.
Ageing rules: price review at 30 days; mandatory reductions at 45 and 60 days; vehicles unsold at 90 days go to auction. Aged stock (> 90 days) is capped at 10% of inventory value.
Concentration: no single model above 15% of stock value; no single vehicle above R650,000 without director approval.
Floor-plan: each vehicle is drawn individually at 80% of cost and settled on sale; the bank audits the yard monthly.
Security: stock keys in a biometric safe; daily yard count reconciled to the dealer management system; CCTV and armed response.

Table 12.2: Operating capabilities required to deliver the plan

Area	Requirement	Plan
Facilities	Secure, visible stand; showroom; 4-bay workshop; wash bay	Leased site with modular showroom and landlord-approved workshop; see capex (Section 19)
Equipment	Two hoists, diagnostic scanners, tyre machine, pressure washer, vehicle transporter	Funded by capex and R2.0m asset finance
Technology	Dealer management system (stock, CRM, F&I, accounting integration); pricing data; e-signature	R32,000 per month per site; group DMS upgrade in FY29–FY30
Procurement	Parts, tyres, glass, panel and paint	Rate agreements with 2–3 suppliers per category; 20-day payment terms
Logistics	Collect purchases, move stock between sites and auctions	Company bakkie and car trailer; outsourced long-distance transport
Quality control	Final inspection before listing and before delivery	Two-signature sign-off; photographic record
Working capital	Pay sellers on transfer; bank payouts in 3–7 days	Receivables 7 days; payables 20 days on recon and overheads
Compliance	FAIS, FIC Act, CPA, POPIA, dealer registration	Finance & operations director is compliance officer; external compliance review annually
Health & safety	Workshop OHS; hoist certification; used-oil handling	Appointed safety representative; annual certification; registered waste collector