Why Auto Service Departments will Thrive in 2022

Most car dealerships are still feeling the strain of low inventory, both new and used, thanks to continued supply issues and the ongoing chip shortage. So, what's a dealership to do with limited cars to sell? Now is the perfect time to focus on exceptional customer experience through the service department.

According to the latest research from Cox Automotive, a subsidiary of Atlanta-based Cox Enterprises Inc., more consumers are focusing on fixing their cars, rather than replacing them during a time when new-vehicle prices are higher than ever.

While the traditional workday commute may be a thing of the past, many Americans are returning to hybrid work environments and generally expect to drive more this year by avoiding public transportation and driving to work and vacation destinations instead of flying. Additionally, according to research firm IHS, the average vehicle on the road in 2021 was more than 12 years old and the vehicle parc (the vehicle population) was at record levels with more than 280 million total vehicles on the road at a particular moment.

With all these added miles, service departments should expect their business to increase even if their car sales are stagnant. Dealerships should not count their service lanes out when it comes to producing revenue and, ultimately, future car sales once inventory shortages and supply issues are no longer issues.

Cox Automotive predicts inventory constraints will continue to be an issue through the first half of 2022, but should improve in the second half, which is opposite to 2021 where sales were highest in the first half of the year only to plummet at year's end. Compared to 2021, new-vehicle sales are expected to increase more than 7% and reach 16 million, while resale vehicles will remain robust above 39 million.

By shifting the focus to the service department, car dealers can stay top of mind with consumers by providing top-rate customer service and increasing brand awareness. Read more tips on the Sid Savage blog.

Additional marketing, sales and service supplies are available at SidSavage.com to deck your car lot or service center out in any season.