When consumers think of car dealers and their profits, most believe that the sale of new cars that can be $30,000 or more is where the money is made, but nothing could be further from the truth. It’s in used car sales and the service drive that the profits are truly driven at most franchise dealerships.
Even though consumers don’t usually know this, most dealers know it. This is why it’s a conundrum that the majority of their advertising dollars are spent on selling cars rather than driving customers to their service bays. For many, the argument is that the majority of their service business comes from people who bought their car at the dealership, so marketing for more sales will also help them increase the fixed operational side. Things are different now thanks to the internet and the drop in brand loyalty, so dealers should be investing more into filling their service bays.