22nd August 2019
UK dealerships saw an increase in aftersales activity in the first half of 2019, according to autoVHC data.
The average dealership saw a 5% year-on-year increase in the number of vehicles presented at its service department between January and June, with the figure rising from 1,570 to 1,649 vehicles.
Across the UK’s franchised dealership network, which stands at approximately 4,900 dealers, this equated to 387,100 additional vehicles being services by franchises in the first half of the year.
However, the data, which is compiled from a sample size of 500 dealerships, also revealed that the uptake in the number of vehicles presented coincided with a slight drop in the completion rate of vehicle health checks (VHCs), which fell from 69% to 66%.
With a completed VHC representing an additional invoice value of £73 per customer, incomplete VHCs could have cost the average dealer £40,880 in the first half of the year alone. This would mean a total missed sales opportunity of £200 million across the UK.
Paul Muers, Business Unit Director at autoVHC, said: “The first half of the year has been a promising one for dealers, which is welcome news amidst a challenging environment that includes a tough vehicle sales market and uncertainty relating to a number of factors, including Brexit.
“Our data shows more vehicles being presented to franchised dealers, which demonstrates that the sector is still capable of appealing to vehicle owners, despite the competition posed by rapid fit businesses. However, this good news is offset by vehicle health check completion rates that are still relatively low.
“Having a vehicle health check process in place for highlighting work to customers in a transparent way can significantly increase invoice value. But this process must be carried out on a regular basis, otherwise the full potential of any uplift in customers using the franchised dealership sector for vehicle servicing will be missed.”News