How do I check an RV dealership’s service department backlog before buying?
Ask for the open repair order list with dates opened, the work promised and the parts still on order. Compare it with technician capacity and the season. A long backlog can mean strong demand or slow work, so find out which. Also ask what customers have already paid and what you would owe in labour.
A service department backlog is both a sign of demand and a promise to customers. Request the list of open repair orders, sorted by date. Note how old the oldest ones are, what is holding them up and how many are waiting on parts, approvals or warranty decisions. A bay full of units that cannot move often signals trouble upstream.
Compare the list with the team. How many technicians are there, how many hours can they bill and how do they split time between warranty and customer-paid work? If the backlog is long because the shop is understaffed, a buyer should think about hiring. If it is long because work is badly scheduled, that is a management fix.
Ask what the dealership has collected in deposits and what it still owes in work. Those obligations pass to you in practice, even when the paperwork is silent. Talk to your accountant about how deposits and open orders appear in the books and the closing adjustments. Walk the lot and the shop to see how many customer units are on site, and ask the owner how customers are updated while they wait. Check the shop’s reviews for comments about wait times.
Key takeaways
- Review open repair orders by age, cause of delay and parts status.
- Compare backlog with technician capacity and scheduling habits.
- Ask what deposits were collected and what work is still owed.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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