According to a recent analysis of Xtime metrics by Cox Automotive, service activity at franchised dealerships in the U.S. decreased in December, following a rise in November. The Repair Order Volume Index fell compared to December 2022, while the Repair Order Revenue Index remained higher year over year.
“The December numbers are aligned with expectations for a big holiday month, but dealers have an opportunity to grow their share of seasonal spending priorities,” said Skyler Chadwick, director of Product Consulting for Cox Automotive.
The monthly Xtime volume and revenue metrics are designed to showcase average service department performance over time, with the information indexed to January 2019. The two top-line measures provide a glimpse into service department performance at franchised dealerships in the U.S. Xtime, a Cox Automotive brand, provides software that helps auto dealers facilitate more than 10 million service appointments monthly.
In December, the Repair Order Volume Index tied its lowest point in six years with a reading of 82.1. This represents a 5.1% decrease from November and a 3.2% decrease from December last year.
Xtime Repair Order Volume Index for December
The Repair Order Revenue Index for December is at 133.2, reflecting a 1.5% decrease from the revised reading in November. However, this index shows a 3.5% increase year over year and a significant 36.4% increase from December 2019, with increases driven in large part by inflation.
Xtime Repair Order Revenue Index for December
Chadwick reported that many dealer groups he spoke with saw a 5% decrease during December in same-day sales, meaning a repair is made the same day it is diagnosed by a service tech. This decrease indicates a need for improvement in service department processes and integrations.
A way to enhance the overall service experience is through digitization. Sending pictures and videos can establish trust and make service approvals as easy as a tap on the customer’s phone.
Additionally, offering flexible payment options could be beneficial. As dealers compete for customers’ dollars, customers may have to choose between a well-running car and other important priorities.
By removing hurdles, dealerships can increase their service department’s efficiency and cultivate loyal customers.
Cox Automotive Industry Insights, with help from the Xtime data team, reports the Repair Order Volume Index and Repair Order Revenue Index around the 20th of each month. For more information, contact Cox Automotive Corporate Communications.
Xtime is the leading end-to-end software solution that drives customer loyalty and revenue for automotive dealers in each stage of the service process. With easy-to-use technology and industry experts, Xtime helps dealers meet changing customer expectations. As an advanced, connected solution that provides exceptional support, Xtime is committed to helping dealers deliver the ultimate service experience. Through transparency, convenience, and trust, Xtime Spectrum — comprised of Schedule, Engage, Inspect, and Invite — facilitates more than ten million service appointments monthly. Xtime is a Cox Automotive™ brand.