The lack of available new vehicles and higher sticker prices mean consumers are holding on to vehicles longer. This is expected to increase service department business and revenue, which is a silver lining during this time of inflation and high interest rates. According to Cox Automotive Chief Economist Jonathon Smoke, "The service department usually does well and is somewhat counter-cyclical during economic downturns."
As a dealer, you can hope service revenue increases in 2023. Or you can hold service advisers accountable for proper vehicle walk-arounds and help revenue increase while building long-term client relationships.
Every dealership service department can diagnose and repair a vehicle. But those service departments that train service advisers to complete a consultative walk-around based on client needs build customer rapport and trust and see an increase in repair orders. Because service advisers in most cases are paid through a commission-based structure that incentivizes them to sell services, why do too few complete this necessary task?