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Dealerships missed out on £429m in unsold ‘red work’ in 2017

The average franchised car dealer missed out on £429 million of aftersales income by selling just 53% of urgently required work, according to the findings of autoVHC’s annual aftersales report.

According to the vehicle health check provider’s data, the UK’s franchised dealers are continuing to miss out on significant aftersales revenue opportunities due to a failure to secure maintenance work identified during the service process.

On average, workshops in the sector missed out on as much as £429 million in 2017, it said, having managed to sell only 53% of red work.

Chris Saunders, business unit director at autoVHC, said: “This continued trend of missed sales opportunities is worrying, particularly as many dealerships are now relying on aftersales revenue to offset any losses associated with the recent dip in new car sales. Clearly, there are failings in the way technicians are communicating with motorists, and these need to be addressed as a priority.

Red work is identified as faults that if not addressed pose a serious safety risk and in many cases will mean the owner will be breaking the law if they continue to drive the vehicle.

The data gathered by autoVHC, which sampled 500 UK dealers in 2017, revealed the average UK dealer failed to sell £87,600 worth of urgently required work over the twelve-month period.

Across the sample group this equated to £43.8 million worth of lost sales, meaning a total lost sales figure of £429 million across the UK’s 4,900-strong franchised dealer network.

source https://www.am-online.com/