Used car service plans have been hailed as a major opportunity for the year ahead following an annual research survey carried out by EMaC.
The service plan provider’s Voice of the Dealer campaign revealed that point-of-sale penetration among used car sales averaged around 32%, compared to up to 76% for new car.
EMaC said that this presented a missed opportunity as sales executives’ perceptions that used car buyers are potentially less interested in the dealer’s aftersales offer led preference to promote other products such as GAP, but not service plans.
EMaC managing director Angela Barrow said: “Many dealers have switched onto the retention value of service plans for their new car customers.
“However, at sales executive level it seems there is a reticence to promote Service Plans to the same degree. Given the retention and lifetime value opportunities and the reality that used sales volumes are typically three times greater than new.
“At EMaC, we are committed to helping dealers to address in the year ahead. Our goal is to help more dealers to release the potential afforded by service plans as other profit centres come under potential pressure in areas such as F&I.”