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Drop in new car sales will hit servicing work in 2013

Dealers are expected to lose 4% or £85.6 million in lost aftersales business by 2013 due to a drop in new car sales and aggressive pricing strategies by independent garages.

According to new data from Castrol Professional, with a drop in the number of ‘nearly new’ cars on the road in recent years, there will be 4% fewer cars under five years of age entering franchised workshops in 2013, an area of the market where manufacturer-approved operations typically earn a large proportion of their aftersales profits.

Castrol Professional says the drop in retail spending on car servicing and repairs is equivalent to more than £85.6m across the franchised sector (excluding MoTs and VAT).

Nigel Head, Castrol Professional OEM and franchised workshop marketing manager – UK & Ireland, said: “With franchised dealership aftersales revenue from cars under five years old set to shrink, customer retention will become even more important.

“Aftersales departments need to promote the value they offer, as well as quality of service backed up by the expertise of manufacturer-trained technicians, to increasingly price-conscious customers.”

Head suggested improved training for customer facing staff can help to boost confidence in handling customer queries or upselling additional products and services. He also believes service plans on new car sales can help to boost aftersales work.

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