As dealership car sales are rebounding, we’re hearing about a V-shaped economic recovery being a possibility. It’s the prediction that as fast and as hard as the American economy dove to historic levels, we could see the same drastic resurrection financially. That appears to be happening in auto retail to some extent.

Used car sales in mid-June are just 6 percent behind the same time frame last year. New car sales have exceeded expectations, according to experts, despite being behind early 2020 projections by about 20 percent.

But here’s the catch: a V-shaped recovery isn’t a clean V shape. It has bumps along the way, and that’s bound to happen when we peak on the tail end. It’s extremely likely that another dip, albeit less dramatic, will happen in the sales department.

What does that have to do with the service department or fixed operations? Everything.

The cold, hard fact is that a dealership is a biosphere. Health comes from symbiotic relationships and any attempt at isolated success is met with failure.

A busy service department in a store that doesn’t sell new cars will eventually slow down. A successful sales department stagnates when other departments aren’t firing on all cylinders. If today’s sales economy is being tuned up, the other departments need to be involved in getting the store running like a well-oiled machine.

The role service plays with the service-to-sales handoff is huge.

What It Should Look Like Now

Customers come through the service department on the daily that are ready to replace their ride. It’s a simple process. The service team member walks with them to the sales department and introduces them to a salesperson or sales manager who talks them through their options.  

Someone in the service department – let’s take a service advisor, for example – isn’t always the best barometer for when someone is ready for a new car. There are opportunities out there to roll new units that will skip past an unknowing service advisor without missing a beat.

Here are opportunities for a service-to-sales handoff.

Older Car Owners

It’s a great time for owners of older cars to buy a new model. Low-interest rates, up to 180 days no payments – now is the time for those able to pull the trigger. People in the service department should always be ready with questions like, “Are you still enjoying your vehicle?” and “Have you considered replacing your car?”

Avoiding expensive repairs is a popular reason for older car owners to change it up. It isn’t usually the new tech or the latest body styles but the promise of reliability.

Cars with Warranty Expiring

A big portion of the American fleet is around the warranty expiration date. We’re talking about cars with 30,000 to 50,000 miles and two to six years of age. These car owners likely still have car payments but aren’t ‘upside down’.

A couple of questions to ask would be, “Have you thought about getting a new car that has a full warranty on it? I bet you’d still be around the same payments.” Or “Have you taken a drive in the new X? You’d be surprised at how well they’ve done with the new features.”

Everyone Else

It’s nearly impossible to exclude anyone as a potential car buyer that the service department could pass over to the sales team. Ads and incentives should be displayed in the service drive. A sign saying to ask an advisor if they’re interested in upgrading is helpful. Literally, it could be anyone that is in the market for a new car.

The service-to-sales handoff is so critical because they are your current and future service customers. What you should be trying to do is renew the customer lifecycle so your service department can have a continued relationship until they’re once again ready to buy another vehicle. Referrals, financing, accessories – these are all reasons to help customers switch into a new car.

Incentivize the process to encourage your service team to engage in handoffs more. It’s a sign of a healthy dealership team when it happens.