Service Business Posts Strong Month
Data show volume, revenue increased, bringing record March top line.
Service revenue rose 5.6% year-over-year.
IMAGE: Pixabay/NoName
Dealership service business volume rose in March, pushing up revenue per location to a five-year record for the month, Cox Automotive said.
The Repair Order Volume Index increased 16% month-over-month, according to Cox’s analysis of Xtime data. Though down 4.3% year-over-year, the performance was strong.
Revenue, meanwhile, was up 5.6% year-over-year, with the average revenue per repair order off by just $3 from the record high in February.
“Though the Revenue Index was down slightly in March, strong month-over-month gains in service ticket volume resulted in total revenue for service lanes hitting a record,” said Cox Automotive Chief Economist Jonathan Smoke.
“The March ticket volume was lower than we have seen in previous years, but higher service costs pushed total service revenue per dealership to a record high for any March in the past five years.”
More Dealer Ops
Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
Timing the Market Can Hurt Long-Term Program Performance
For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →
Survey Reveals What Won't Fix What's Breaking Car Sales
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →
IA American Appoints Two Execs
Senior vice presidents of the company's agent and dealer channels chosen to support general agents and help auto dealers with sales and performance.
Read More →
Cox Automotive Acquires Inspection Firm
Full ownership of Alliance Inspection Management, or AiM, meant to unlock growth for Manheim inspection capabilities
Read More →
Assurant Expands Partnership With Holman
Extended collaboration delivers training, products and performance development to 30 newly acquired Holman dealerships
Read More →
Franchises, Throughput Down in First Half
A handful of states see franchise growth through June, while EV sales per store boost overall business in U.S.
Read More →