Benefits of Aftermarket Income Development

Having a robust aftermarket program is critical to automobile dealerships. In 2016, the National Automobile Dealers Association (NADA) found that aftermarket income represented almost half of the new and used vehicle department’s gross profit. Finance and insurance (F&I) were 25% of the profit while service contracts and other amounted to 24.4%. However, organizations such as Consumer Reports warn consumers against aftermarket sales. Therefore, it is important that aftermarket programs supply a win for both the buyer and the dealership.

Collaborating with a specialist in aftermarket products such as Dealership Development can assist aftermarket income development. For example, a 2016 IHS Markit report showed that the fastest growing group of cars on the road are the oldest ones. In 2016, there were 60 million automobiles 16 years and older. By 2021, this should grow by 30% to 81 million vehicles. During the same timeframe, the number of cars aged 6 to 11 years will increase by five percent. Dealership Development strongly supports this market segment with its High-Mileage Service Contract. Qualifying cars from any year and any mileage, insurance by A-Rated carriers, nationwide coverage, and towing and roadside assistance provides older vehicle owners with the benefits they need.

F&I sales are more complex, with increasing numbers of regulations requiring compliance. A new approach to training delivers sales advantages. Dealership Development provides classroom training but also brings experts into the dealership to demonstrate the F&I process with real customers. By watching the specialists execute the program, the sales force learns how to provide customers with the right financing and insurance. Contact us to learn more about our services.