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Jim Roche, Industry Voices contributor

Car Dealership Vehicle Sales Down, Now What?

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Article Highlights

  1. Auto sales this year have been flat, as predicted. That doesn’t necessarily mean doom and gloom for dealers. But dealers cannot rely on new-vehicle sales alone.
  2. The untapped opportunity lies in the service department. ... Consider this: less than one in three service visits take place at dealerships in the U.S., even though dealers sold all of the new vehicles and most of the used.
  3. Technology can help make sure showroom customers become service customers, too.

Auto sales this year have been flat, as predicted. That doesn’t necessarily mean doom and gloom for dealers. But dealers cannot rely on new-vehicle sales alone.

It’s time to look harder at other avenues to drive profitability. Which areas need more focus so we can maintain or even increase profit growth?

The untapped opportunity lies in the service department. There’s an experiential “white space” for dealers to seize here. What do I mean by “white space”? Consider this: less than one in three service visits take place at dealerships in the U.S., even though dealers sold all of the new vehicles and most of the used.

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