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Dealers are increasingly turning to service plans to combat the downturn in workshop utilisation.
The Warranty Group said factors such as extended service intervals and the recession have been rapidly eroding workshop sales.
Research from motor trade business analysts ASE which says that utilisation has fallen from 90 per cent in 2002 to 80 per cent last year.
Ian Simpson, sales and marketing director, said: “This equates to a doubling of workshop idle time from 10 per cent to 20 per cent, which is a huge increase and one that many dealer managers are painfully aware of.
“The challenge facing them is to retain the available workshop business in a structured fashion and service plans are becoming rapidly recognised as an effective way of doing this for all kinds of dealers – from major groups to smaller independents.
“Dealer managers are recognising that they need a structured way to respond to the gradual erosion of aftersales business, and service plans allow them to do this.
“What the product does is give the dealer an opportunity to sell a product to a new or existing customer that allows them to budget for their motoring in a sensible way and this is something has a lot of appeal at a time when many people feel uncertain about their financial situation.