Dealers advised to target MOTs as bookings expected to increase

SecretServiceTM has recommended that dealers focus on driving conquest bookings from owners of segment 2 vehicles, while optimising customer retention and attracting more MOT work.

Vehicles in segment 2 or older are “absolutely crucial and could determine continued viability of dealer aftersales operations,” said Trevor Boswell, Head of SecretServiceTM, as the number of MOTs conducted this year is expected to exceed 2019 levels by over a million.

“Some are focussed on preserving every percentage point of profit margin, and as a result are steering away from the older vehicle opportunity, when boosting revenue and overall profitability is within their grasp. By maximising their use of digital tools, the disruptive ones – those willing to trying something new – will reap significant benefits.

“Expanding your ability to attract new customers and fighting for market share will see that chasm shrink, and as more franchised dealers do so, the marketplace will undergo significant change,” added Boswell.

The steady return of the aftersales workforce since the ending of the furlough scheme, vaccination roll-out and lifting of restrictions, means many dealers have returned to full operating capacity and therefore have a void to fill with additional workload.

Boswell concluded: “Dealers can be protective about certain KPIs and while this is understandable, as the aftersales sector evolves at pace, with segment 2 and older vehicles now so fundamental to success, revenue and market share are crucial.

“Traditionally, segment 1 vehicles have been the dominant focus of franchised dealers, but the result of two years of lost new car sales and ongoing supply problems means this opportunity is shrinking. Dealers may now be considering resizing their aftersales operations but, with some strategic changes such as improving access to the market of older vehicles, this can be avoided.

“MOTs are arguably one of the most underrated retention tools a dealer has at its disposal and if a customer books their MOT with you, you’re likely to gain their servicing and repair work, too. The opportunity is clear, in 2019 there were 30.2m MOTs completed, and this increased to 31.3m in 2021. This is a further reason for why dealers should look to implement strategies which better enable the workshop to take on more vehicles aged three years or more.”