By Amir Dabiri - June 23, 2022
It seems like the economy is all over the place these days. This time last year, demand was out-pacing supply with consumers spending like never before due to a post-COVID rebound. The subprime auto industry was on fire as people scrambled to buy whatever vehicle they could get their hands on.
We are now faced with historic levels of inflation that haven’t been seen since the 70s. Consumer spending habits shifted to saving rather than buying. People are now choosing to hold onto their vehicle over trading-up or selling to avoid paying inflation prices. How can you, the dealer, make money from this trend?
Utilize Your Service Department
Dealers that utilize a service department in their business model will ride out this trend better than those that don’t have one. Offering this type of service gives dealers a way to stay connected with your customers while building your brand loyalty. Customer loyalty doesn’t have to end after the initial sale. Instead of being a one-and-done dealer, become the one-stop-shop dealer!
Keep Tabs on Sold Inventory
Another benefit to having a service department is keeping tabs on sold inventory post-sale as well. This approach allows you to accurately track the history of the vehicle to better help with providing accurate trade-in values when the market shifts back in the future. Yes, CarFax can tell you the repair history of a vehicle, but knowing who, what, and how it was serviced can help make decisions so much easier when the time comes for a trade-up.
Create Additional Revenue Streams
Yes, having a service department will increase the expenses of the business, but it will also drive additional revenues from a constant influx of routine and non-routine repairs. If approached with a lean inventory model and correctly staffed, the department will pay for itself in addition to giving a revenue boost to the bottom line sooner rather than later.
Deal Pack Service & Parts
Did you know that Deal Pack offers a dedicated Service & Parts module? The Service & Parts module is built on the same framework of integrated accounting that drives our flagship software, Deal Pack Pro.
Deal Pack Service & Parts makes tracking parts costs and technician labor hours as easy as working a deal! In addition, it provides you a wealth of reports so you have real-time profit analysis and breakdowns on the performance of your service department.
Deal Pack Service & Parts integrates seamlessly with Deal Pack Pro to give you hassle-free accounting of your entire business! We also offer enhanced integrations with AllData Labor Guide to give you up-to-date job labor valuations. Additionally, to keep your customers up-to-date on repair orders we offer SMS text messaging.
Want to know more? Contact Customer Support at ABCoA or by calling 800-526-5832. Let us help you grow your business!
ABCoA is a Software-as-a-Service company dedicated to the subprime industry. Our cloud-native ecosystem handles every part of business operations - improving productivity, security and accuracy, while consolidating vendors and reducing costs.
Since 1983, ABCoA has helped buy here pay here used car dealerships and subprime finance companies eliminate duplication, remain compliant, and achieve success with complete, customer-driven software and dependable support. Customers properly using Deal Pack have never lost an IRS audit.
Recently awarded Top Online Accounting Software for Deal Pack, ABCoA continuously elevates the standard for software in the subprime industry and helps customers grow through our commitment to quality, innovation, and service. Headquartered in Jacksonville, Florida with employees across four states, we remain family-owned and operated.
To learn more about ABCoA, visit www.abcoa.com.Request a Demo