Aftersales revenues boosted by older vehicle focus
New analysis has found that retailers can significantly boost aftersales revenues by targeting older vehicles.
According to research carried out by TekCor4, the annual billable value of a seven-year-old car is £593 compared to £369 for an equivalent three-year-old model.
This represents an uplift of 61%.
The data, based on based on more than 2.4 million bookings for used vehicles aged one to seven years old in the last year, also found that higher billable values for older vehicles applied across powertrains.
For example, the average invoice value of a three-year-old petrol or diesel model was recorded at £372, rising to £592 per annum at seven years, while for electrics the figures were £292 and £647.
Aftersales revenues
The gradual increases were attributed to more frequent workshop visits as the vehicle gets older, and rising average invoice value per visit. Underlining this, TekCor4 identified that 49% of the annual billable value for a three-year-old model was for servicing with 51% from unscheduled work, but at seven years old the balance shifted to 70% for unscheduled work compared to 30% for routine services.
Meanwhile, the cost of annual unscheduled work for a three-year-old petrol or diesel car is £174 compared to £412 at seven years old, while for electrics the average rises from £177 at three years to £501 at year seven.
Jeremy Evans, director, marketing services for TekCor4, said: “Many car owners are keeping their vehicles for longer, which presents a significant opportunity for aftersales departments to both foster customer loyalty and increase their average customer lifetime value.
“Retailers can use AI-driven tools to predict upcoming aftersales work and then issue automated, hyper-targeted communications that drive retention and boost workshop profitability.”
