Service Business Falls in December
Lowest reading in years exposes room for improvement, Cox Auto says.
IMAGE: Pexels/Andrea Piacquadio
Service drive volume fell in December to its lowest level in six years, though service revenue rose.
The drop in business at franchised dealers is an opportunity for growth by making service a seasonal spending priority, Cox Automotive says.
The 5% month-over-month decrease – 3% year-over-year – put Cox’s Repair Order Volume Index at 82.1, tying its lowest reading in six years. The data, which tracks average service drive business, is indexed to January 2019.
Revenue, meanwhile, while it fell 1.5% month-over-month, rose 3.5% year-over-year and was up dramatically – 36% – over December 2019, Cox said largely due to inflation.
It said dealerships have room for improvement, as there was a 5% drop in what it calls same-day sales, or repairs made the same day as diagnosis.
It recommends digitizing customer interactions that enable them to approve repairs from their phones, and offering flexible payments, both to build trust and make customer experience more efficient.
Originally posted on Auto Dealer Today
More F&I
New Lifetime Battery F&I Product Meant to Drive Dealer Traffic
EFG Cos. offering is intended to create lifetime auto dealer engagement with customers.
Read More →
The Psychology Behind Menus That Increase Add-On Sales
There is a science to crafting a menu that gives customers confidence in the choices presented, and moving the process outside the F&I office can further boost results.
Read More →
Why Your F&I PVR Is Misleading You
Here’s a handy checklist of the numbers to track in 2026 instead.
Read More →
Auto Consumer Anxiety Presents Opportunity
A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.
Read More →
Humble and Hungry: 12 Rules for an F&I Life
Dustin Gingerich, with a decade in the F&I business under his belt, shares his thoughts on leadership, building trust with customers, and the importance of learning and innovation.
Read More →
Focus on the Opening
F&I managers must learn as much as possible about their customers, starting before they walk into their offices. The bulk of today’s consumers expect that, and good results will follow.
Read More →
F&I Reaches for the Sky
The increasingly important profit center continued making gains in the first quarter, according to StoneEagle data, ancillary products proving more popular as consumers hold onto their buys longer.
Read More →
What Market Timing Mistakes Mean for Your Reinsurance Program
When volatility hits, dealer-owned reinsurance programs face a familiar temptation: pull back and wait for calmer waters. New data from BOK Financial shows why that instinct can quietly cost you years of surplus growth.
Read More →
The 90/10 Rule
In this video, Ryan Ruff explains the rule that elite sales professionals use to turn ordinary conversations into unforgettable customer experiences.
Read More →
Your Office Is Talking
What’s the atmosphere saying about you to your customers? You can make minor adjustments and additions that transform your space into one that creates trust with the people on the other side of the desk.
Read More →