Based on a recent study by S&P Global Mobility, the average automobile on the road today is 12.5 years old—a record high. High new car pricing, rising interest rates, supply chain problems, and general enhanced build quality of current cars are fueling this trend of consumers retaining their vehicles longer.

For dealerships, this move represents a big opportunity in the service department.

Why is Service the New Sales?

Consider this: There are many more drivers who need basic maintenance such as oil changes, brake pads, and tires than there are those actively looking to replace their cars. This allows dealerships to create connections with new consumers in their service bays.

Dealerships may attract cost-conscious customers by emphasizing parts and service advertising, such as oil changes, tire rotations, and brake services. This first service visit enables dealerships to demonstrate their expertise, establish trust, and position themselves for future auto sales when the client is ready to trade in their current vehicle.

Is your dealership capitalizing on service?

Here’s a question for dealers: Are you aggressively promoting your service department? Consider the following tactics:

• Launch targeted service campaigns: Highlight oil change deals, brake pad replacements, and other basic maintenance packages.
• Advertise components and services: Don’t only push new vehicle sales. Let prospective clients know you’re the go-to shop for keeping their current vehicle functioning smoothly.Provide great client service: A pleasant service experience may convert a one-time consumer into a loyal customer who returns for future needs, including the purchase of a new automobile.

10TH DEGREE can help!

Implementing these techniques allows dealerships to adapt to the changing automotive industry and use service as a springboard for future sales. 10TH DEGREE can assist dealerships in developing and executing successful service department marketing initiatives. Contact us now to learn more!

Source:
Mobility, S. G. (2023, May 15). Average Age of Light Vehicles in the US Hits Record High 12.5 years, according to S&P Global Mobility. PR Newswire.

https://www.prnewswire.com/news-releases/average-age-of-light-vehicles-in-the-us-hits-record-high-12-5-years-according-to-sp-global-mobility-301824463.html