Service Volume Drop Should Be Temporary
Report says winter brought February dip; revenue was actually up.
Seasonal pressures likely caused a dip in service business in February, when service revenue actually ticked up, shows a Cox Automotive report.
Cox’s Repair Order Revenue Index rose year-over-year while its Repair Order Volume Index fell. The same pattern occurred month-over-month.
The average service business data from U.S. franchised dealerships are indexed to January 2019.
\Volume fell 8.5% month-over-month in February and 3.2% year-over-year. Revenue rose 0.5% month-over-month and 7% year-over-year, Cox said. Average revenue per repair rose $3 to a record high.
The volume decrease “is likely due to winter weather impacting service appointments in many parts of the country,” said Cox Automotive Chief Economist Smoke. “Service continues to be an excellent revenue opportunity for dealers, and service demand remains strong from consumers keeping their vehicles longer and opting to repair instead of replace.”
EVs on the Hook for Fallen Service Satisfaction
Originally posted on Auto Dealer Today
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