Dealer Service Departments Fighting For Business
The recession has forced many consumers to hold onto their cars for longer than they’d planned, which is both a blessing and a curse for dealer service departments, says Wards Auto. Car sales and warranty jobs are down (as well as the market for auto loans), which has prompted dealer service departments to intensify their efforts to market their services to the public. Increases in ad spending – by 30 percent for some dealers, according to Wards– carry the hope that the market will begin to show more positive returns.
Many dealer service departments see short term gains
Consumers that end up keeping their cars for a longer period of time will inevitably run into more situations where auto repair and more extensive vehicle maintenance are necessary. It was simply put, “If people keep their cars longer, there is business to be had,” by DriverSide cialis for sale online CEO Jad Dunning. AutoMD explains that is likely nearly half of drivers in a recent poll have driven their current cars more than 100,000 miles. The short-term added repair costs is estimated to be about $ 2,500 per car owner, said AutoMD President Shane Evangelist.
Dealer service departments are predicted to lose out in the long term
J.D. Power and Associates estimate that dealer service departments could lose as much as 20 percent of their expected business between now and 2013, Wards reports. This indicates another area where dealers are looking to improve: retaining customers, rather than losing them to non-dealer shops. More competitive pricing is the main tool dealerships will attempt to use to stop the bleeding. Expanding service to seven days of the week and making contact with customers more often are also some ideas. It also might be necessary to upspell extended warranties and pre paid maintenance plans.
Rather than warranty work, focus on maintenance
Since there aren’t as many new car sales today, it pays to shift from business models that depend on warranty work. Old cars that aren’t covered by warranty anymore will need repair and service frequently changing the business model for service departments. Also, expanding dealer service departments’ inventory to include more accessories is a huge goal that many dealers like Sid DeBoer of Medford, Oregon’s, Lithia Motors have in mind. He told Wards he is “frustrated we don’t do better in accessories.” The same chain has a Sacramento, Calif., store that leads the way with accessory sales, so DeBoer hopes his dealership can follow suit.
Citations
Wards Auto
http://wardsauto.com/home/auto_dealers_serious_100513/
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