Since the recession hit in 2009 the UK automotive and housing market has been hit hard. Both of these purchases are major financial burdens for individuals and families. Unfortunately the lack of available finance has suffocated the number of sales which resulted in new car sales struggling last year.
The impact of last year is going to haunt car dealers for the next few years; think about it, a lack of new car sales is going to mean fewer cars requiring servicing, maintaining and repair. A car dealership makes a huge chunk of its profit from after sales but with lower new car sales they have fewer opportunities to up sell or gain new customers.
By 2013 franchised car dealer may well struggle with Aftersales revenue, especially as independent garages become more and more competitive. It has become more important that dealers provide high levels of customer service and try their best to retain customers. What I have noticed is that franchise dealers are quite often better value for money or at least very competitive, and their expertise is second to none but they don't brag about it.
Over the next few years franchised dealerships need to focus their attention on providing the best level of service and create a loyal customer base. As well as best new car deals in the UK dealerships need to start looking at after sale packages and promotions.
Manufacturer led offers for Aftersales may also help dealerships be more price competitive, people are willing to pay more for specialist service but its needs to be justified. My personal opinion is that franchised dealers are in a good position when it comes to expertise and knowledge; they need to scratch up on their customer service and perhaps be more price competitive.
Did you know that some dealers can carry out a regular service for 99? This is the same as what a leading independent chain is offering, the difference is that the independent is advertising it aggressively and tapping into the market while the dealers are relying on customer loyalty.
Author Resource:-
Joanna Small - Automotive Journalist and Enthusiast
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