Notifications & Messages

Jared Hamilton
From: Jared Hamilton
Hey - It’s time to join the thousands of other dealer professionals on DrivingSales. Create an account so you can get full access to the articles, discussions and people that are shaping the future of the automotive industry.
×
DrivingSales News

DrivingSales News Reporter

Exclusive Blog Posts

WEBINAR RECORDING - A Squad of Smooth Talkers: Prioritizing Phone Calls Beyond Sales and Service

WEBINAR RECORDING - A Squad of Smooth Talkers: Prioritizing Phone Calls Beyond Sales and Service

In today's webinar, we had a great discussion with Amanda Knowlton, Director of Channel Partnerships at CallRevu. She talked …

Bumper.com Granted NMVTIS Public and Commercial Certification

Bumper.com Granted NMVTIS Public and Commercial Certification

Bumper.com is excited to announce that we have received NMVTIS certification for commercial and public customers. Bumper.com is the first company of its ki…

Automotive Email Marketing: 5 Tips To Boost ROI On Emails

Automotive Email Marketing: 5 Tips To Boost ROI On Emails

Email marketing remains a solid marketing strategy even with the rise in other digital platforms that promote businesses. It enables businesses to conn…

[Podcast] The FAQs of Career Pathing: What You Need to Know When Launching Career Paths

[Podcast] The FAQs of Career Pathing: What You Need to Know When Launching Career Paths

In this episode of the DrivingSales Dealership HCM podcast, Bart and Jason discuss some of the most common challenges faced when launching a career pathing…

The Evolved Consumer Journey – And What It Means for Dealerships’ Marketing Strategies

The Evolved Consumer Journey – And What It Means for Dealerships’ Marketing Strategies

Greta Crowley, vice president of marketing for Autotrader   The automotive consumer journey – from browsing options to purchasing a vehicl…

The Service Sweet Spot

Experian Automotive’s most recent market trends data for VIO, or Vehicles in Operation, tells the story of the total number of vehicles currently on the road by model year, segment, age, and market share.

The VIO “sweet spot,” comprised of vehicles typically 6-12 model years old that have aged out of general OEM manufacturer warranties, is growing, with 30.7% of vehicles falling in this category. 

Why is this sweet spot so important?  Over 4 million cars were added to the road in the last 12 months. Which gives the U.S. just over 270 million vehicles currently on the road. Typically models that are 5 years old and newer are still covered by the manufacturer’s warranty. So any vehicle that is a 2014 model or older will be more likely to have service paid for by the vehicle’s owner. A ‘sweet spot’ in those vehicle years is between 2008-2014. These vehicles, between 6 and 12 years old, are no longer eligible for manufacturer warranties but still have significant value.  Vehicles that are 6 years old or older make up the majority of vehicles on the road. 

Vehicles that are 12 years old or older have services that often outweigh the value of the vehicle, limiting their likelihood of getting services at all.

Your service department is in a great position to acquire new customers who fall under this sweet spot, a segment that independent service shops are already capitalizing on.

 

Bottom line? Your service and parts departments need to be ready for this growing opportunity.

Capitalizing on the sweet spot will improve your service department’s ROI. Being proactive and developing campaigns that address this sweet spot will benefit your service department because almost one-third of the vehicles on the road fall into that category. Understand your market so you can make more profitable decisions and acquire more long term customers.

 

 Unlock all of the community & features  Join Now