Vehicle Health Check Oversight Costs Franchise Dealers £17m

According to data published by autoVHC, in the final months of 2018, the UK’s franchise dealerships missed out on more than £17m worth of service revenue.

Results show that during October and November 2018, there has been a huge drop in the percentage of complete health checks. In October, the average dealership completed checks on just 64% of vehicles presented, compared to 73% during October 2017. And, in November 2018, the average franchise dealership completed checks on just 65% of vehicles, compared to 74% in 2017.

In October, the year on year fall in completion rates has cost the average dealership £1,944 and £1,656 in November.

The missed service revenue totals at £17,640,000 across the UK’s 4,900 strong network of dealerships.

A report from Coachworks Consulting stated that franchise dealers are losing revenue with poor vehicle health check management.

Chris Saunders, AutoVHC’s business unit director, said, “To see a fall in completion rates at this period of the year, given the wider challenges facing the industry, is particularly disappointing. Winter presents an opportunity for dealerships to provide a range of additional services, including winter health checks for example.”

“The rates seen in 2017 were by no means spectacular, so to see these slip as low as 63% represents a significant lost revenue opportunity which could prove costly with the forecast looking uncertain for 2019 too.”