January Service Activity and Revenue Increase Year Over Year, according to Xtime Metrics
Tuesday February 21, 2023
The latest Cox Automotive analysis of Xtime metrics shows that service activity decreased and service revenue increased month over month at U.S. franchised dealerships in January. The Repair Order Revenue Index and the Repair Order Volume Index were both up compared to January 2022.
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.
“The decline in the January Repair Order Volume Index is likely a capacity issue – from shortages of both technicians and parts – as opposed to declining consumer demand,” said Cox Automotive Chief Economist Smoke. “Service demand remains strong, and traditionally service is an area where dealers see a lot of resilience during a negative economic cycle.”
The January Repair Order Volume Index, which decreased to 82.9, was down 3.6% month over month from December’s upwardly revised number and was up 3.4% compared to January 2022.
Xtime Repair Order Volume Index for January
Cox Automotive research shows that consumers are holding on to their vehicles longer and fixing them instead of trading them in. Those big-ticket repairs, along with inflation, are helping to keep service revenue high.
At 130.8, January’s Repair Order Revenue Index was up 1.3% from December’s upwardly revised reading and is up 8.4% year over year. The average revenue generated per repair order increased by $7, setting a record high for the index.
Xtime Repair Order Revenue Index for January
“Dealers are telling us that inflation and rising costs are causing them to increase their service prices, and the January Xtime Repair Order Revenue Index reflects that reality,” said Tiffani Stefanescu, Xtime performance manager. “Service revenue is essential to the overall health of a dealership, so dealers need to focus on recommending additional services during the service visit and providing an excellent customer experience so that the boost in revenue translates to profit and customer loyalty.”
Cox Automotive Industry Insights, with help from the Xtime data team, report the Repair Order Volume Index and Repair Order Revenue Index around the 20th of each month. For more information, reach out to the Cox Automotive Public Relations team.
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.