If the recent automotive news tells us anything, it’s that sales are slow – and change is fast. Automakers and dealerships are navigating declining demand, while at the same time managing shifts in consumer expectations. They’re also searching for ways to speed the sales process and streamline service department functions. Recently, in fact, new events are taking shape that may create additional revenue and customer service opportunities across the dealership.
So, while the story of sales may not be great news, the industry’s movement toward more efficient operations is exciting and promising. On the service side, new marketing opportunities and additional revenue streams are emerging, all directly or indirectly related to technology innovations now coming to the fore. Here are a few service-related headlines:
Vehicle Subscription Plans Might Become a Boon for Fixed Ops
What: You’ve undoubtedly heard the news about vehicle subscription programs. From all-makes platforms like Fair, to automaker-specific test programs operated by Ford, Cadillac and Volvo, it’s an idea that is gaining popularity – especially at the dealerships. Indeed, there are already a few dealers who are operating their own subscription program to further monetize their inventory. According to Automotive News, that includes service revenue, as well.
Takeaway: The article outlines ideas that dealers can try in order to create a revenue stream from a subscription program. One such idea for dealers is to base a service drive subscription program on reconditioning best practices. The value is due to the dealer’s access to historic vehicle data. Additional ideas include adding fees for repairs and warranty work.
Top Global Sellers: Can You Guess the Top Ten?
What: Okay, so most people already know that the Ford F-Series truck is the best-selling vehicle. And many would probably guess that the Toyota Corolla is also on the top five list of the global popularity. But did you know the popular Nissan Rogue is in the top five? It’s true. And here’s another surprise: The Toyota Camry didn’t crack the top ten. The list is published at MSN and is based on 2018 global registrations from JATO.
Takeaway: Counting vehicle sales around the globe shows trends in terms of consumer preferences, and in how automakers are responding to an array of market pressures. At the dealership level, it can also provide a signal as to which vehicles consumers will be most interested in buying, and what service managers might see more of when it comes to maintenance and repair.
Your Friendly Lyft Driver Might Be a Great New Source of Income
What: According to Automotive News, there are currently around 4 million rideshare drivers bopping around cities and suburbs. That’s a lot of Lyft and Uber business, to be sure – and it’s also a great opportunity for dealerships. Consider, for example, that while most vehicles are active just four percent of the time, rideshare vehicles ring the bell at a robust 26 percent. The Automotive News post figures that this type of use equals six times the required maintenance.
Takeaway: If you’re not already marketing to ride-share drivers, seriously consider doing so. Obviously, their income requires consistent maintenance and repair on an accelerated schedule – and that makes them an ideal customer. If you build a solid service relationship based on complete, fast and affordable service, chances are they will return many times.
Winter Blues Expected to Creep Into February Car Sales
What: Edmunds is forecasting a gloomy February for new vehicle sales, thanks to a 2.2 percent decrease compared to February 2018, and an estimated seasonally adjusted annual rate (SAAR) of 16.7 million. On the bright side, sales improved over January 2019 by over 12 percent. Edmunds analyst Jeremy Acevedo sees it as a subtle drop and a “good barometer of the gradual sales decline we expect through 2019.” He cites the growing cost of purchase, such as interest rates, as a main reason for the slump.
Takeaway: After almost a decade of record-breaking growth, the auto market seems to have settled into a gradual sales decline, driven by higher cost and perhaps the availability of late model used vehicles. Regardless of the reason, service managers are becoming bigger VIPs inside the dealership, with a mandate to streamline service operations, and improve efficiency throughout the department.