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RevolutionParts

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How Selling Parts Online Can Boost Your Dealership Revenue

How Selling Parts Online Can Boost Your Dealership Revenue

RevolutionParts has always experienced record numbers on Cyber Monday. Every year, it sets the new record for highest part sales day for dealers using …

WEBINAR RECORDING - Understanding the Road Ahead: New Strategies for Your New Customer Base

WEBINAR RECORDING - Understanding the Road Ahead: New Strategies for Your New Customer Base

Watch this webinar recording to explore the current state of automotive consumer expectations, beginning with the historical precedents and recent up…

The KPI Cafe Returns on Monday with Brent Wees!

The KPI Cafe Returns on Monday with Brent Wees!

We're back! The #KPICafe returns on Monday with a truly impactful session that features one of our favorite people, Brent Wees. The title mig…

Fix The Root Cause: The Problem Behind the Problem

Fix The Root Cause: The Problem Behind the Problem

If an "easy button" really existed we'd all have it jammed by now. Effortlessly fixing one issue at a time. Unfortunately, that's not how…

Don't Be that GM

Don't Be that GM

The General Manager role isn’t an easy one, nor is it a role for the faint of heart. You need thick skin…. But that doesn't mean we don&rs…

Latest Auto Industry Trends Caused By COVID-19

As two of car dealers' primary revenue streams, car sales and collision repairs dried up during the COVID-induced recession. Online parts and accessory sales have dramatically increased, providing dealers a new outlet for additional revenue. In this blog, we’ll take a look at how much the automotive industry has shifted in the last three months and the record numbers the online part and accessory market has seen.

COVID’s Effect on Car Sales 

In the long 2 months from March 2nd to May 3rd, new and used sales dropped 1.5 million units. That’s a total loss of $41 billion in revenue and $2.6 billion in profit for dealers. Those who were in the industry during the last recession are experiencing a bit of deja vu as Edmunds estimated that overall sales fell a total of 34.3% through the second quarter. FCA saw a 39% decrease in US sales while GM saw a 34% decline.

The Shocking Decline in the Service Department

While dealerships could historically fall back on the service department to fix absorption rates during a recession, social distancing guidelines and fear of spreading the virus has caused customers to stay home. Consumers have prioritized essential repair work over maintenance, and with fewer cars on the road, the collision rates have dropped. In March alone, service requests dropped 56% when compared to the previous year.

Online Parts & Accessory Sales are Rising High

Dealers using the RevolutionParts platform to sell parts online reported that, for a lot of them, the automotive aftermarket has been the only upside during this whole pandemic. Even though people aren’t purchasing cars or coming in for routine maintenance, they’re doing what they can from home to keep their cars running. Garages and driveways have turned out to be great places for DIYers and those willing to learn how to change a filter to stay socially distanced. 

The automotive parts and accessories market is typically recession-resistant — and it’s standing strong against COVID-19!

While online dealers saw a drop in their part and accessory sales around the time states mandated lockdowns and business shut their doors, it wasn’t long before daily part sales skyrocketed. After stimulus checks and tax returns kicked in, part and accessory sales picked back up and surpassed the norm. Since May, daily sales have increased by 35% on average.

AVERAGE DAILY SALES

The coronavirus has forced the automotive industry to face new challenges in vehicle sales, fixed operations, customer behavior, and economic outlook. RevolutionParts has collected data from trusted partners and internal stats to lay out the automotive trends brought on by COVID-19. Download these insights to help your business adapt to the new landscape.

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