The automotive industry is flooded with new inventory—and after years of fast turnover, that inventory isn’t moving like it used to. High interest rates may be a factor, sure, but there’s an opportunity for dealers who can unlock equity. If you’re a consumer looking to reduce your monthly payment, the most powerful tool at your disposal is the equity in your car. And for those who leased during the pandemic, that buyback rate is nothing short of phenomenal right now. Cox Automotive’s Skyler Chadwick, director of product consulting, joins us on the latest episode of Power Lunch to share how a seamless connection between Fixed Ops departments and inventory management holds the key to dealer success.
Key Takeaways
1. Skyler Chadwick emphasizes the importance of integrating fixed ops strategies with sales processes. He highlights that when service departments educate customers about their vehicle’s equity and trade-in options, it enhances the overall customer experience and drives inventory movement.
2. Fixed ops departments significantly contribute to dealership profitability by generating consistent revenue streams through service, parts, and maintenance. Skyler notes that service customers are more likely to become future vehicle buyers, thereby increasing both customer retention and dealership sales.
3. Data-driven insights play a crucial role in optimizing fixed ops for inventory management. Chadwick discusses the importance of real-time information on market trends, vehicle values, and customer preferences. Leveraging tools like Kelley Blue Book and XTIME helps dealerships strategically manage inventory and facilitate trade-ins.
4. Additionally, Chadwick underscores that exceptional service fosters customer loyalty and repeat business. By prioritizing customer satisfaction in fixed ops, dealerships can encourage clients to return for service and consider their dealership for future vehicle purchases. This approach not only boosts inventory turnover but also enhances long-term profitability.
5. Dealerships interested in enhancing their fixed ops strategies can access detailed insights and studies through Cox Automotive’s resources. Hence, Chadwick directs dealers to visit CoxAutoInc.com/ServiceStudy for comprehensive information on optimizing fixed ops for dealership success.
"We are in the repeat referral business. When fixed ops prioritizes customer satisfaction, clients are more likely to return for service and consider their vehicles for trade-in, boosting inventory turnover and long-term profitability." - Skyler Chadwick.
