Despite record 2020 dealership profits from car sales and Finance & Insurance products, there’s less demand for parts and service because COVID-19 has reduced wear and tear on vehicles, Lithia, Asbury and Group 1 report.
RevolutionParts’ annual Parts eCommerce Report says parts sales processed through the company's online platform grew 28% in 2020, from $328 million to $421 million.
Panelists say dealers are offering what’s now a familiar menu of pickup and delivery and sanitizing customer vehicles, as well as new approaches where dealers get more value from customer data.
“This research confirms that quality work done promptly, explained clearly, for a fair price, and delivered with excellent customer service is what leads to customer satisfaction among American drivers.” says Timothy Gravelle of SurveyMonkey...
“When people see that van, and the doors open, and they hear that generator start up, they want that service,” says David Bergamotto, service manager for Park Avenue BMW of Rochelle Park, NJ.
In a Wards Q&A, Ally Insurance President Mark Manzo talks about service contracts remaining important even though people are rethinking their driving needs.
Savvy dealers have been leveraging technology, social channels and new thinking to circumvent traditional auction houses and the higher-priced inventory that comes with them.
Car dealership F&I trainer Tony Dupaquier developed a visual technique that uses a stapler and a smartphone as props to sell vehicle extended service agreements.
“Fixed operations is coming back slowly, but surely,” Sonic’s Jeff Dyke says. Meanwhile, Lithia expects service, body and parts business to grow an average of 5% to 6% on a same-store basis over the next five years.