Fixed Ops Magazine - 2023 Vol 20 02 - 40

FEATURE BY TIM HARDIN
THE 92%
SOLUTION
It's Time for Dealers to Target Every Parts, Tire, and
Service Opportunity - Regardless of Vehicle Age
N
o matter how you look at it, 92% is a large
percentage. Now, consider that it represents
the share of customer-pay parts and service
revenue lost by dealers for one of the largest passenger
vehicle age groups and 92% becomes downright
staggering.
The question is: Is your dealership going to plug this
gaping hole by pursuing customer-pay parts along with
tire and service opportunities that have traditionally
been dominated by independent aftermarket providers?
Considering that the average age of U.S. light vehicles
now stands at 12.2 years - and with total U.S. aftersale
revenue expected to top $375 billion in 2023 - the opportunity
is massive. Nevertheless, an estimated 68%
to 72% of this market is addressed outside the dealer
parts, tire and service channel. In fact, industry sources
estimate that dealers lose up to 78% of aftersale revenue
for vehicles three to six years old and, yes, 92% of
revenue for vehicles over seven years of age.
Before you respond with, " It's always been that way, " or
" We're already doing pretty well with warranty work, "
think about the changes taking place within the nation's
car parc (registered passenger vehicle population):
* In 2002, 35 million light vehicles were at least 16
years old. Today that number is 74 million, representing
one-in-four cars on the road.
* The share of VIO (Vehicles In Operation) seven
years old and above is growing much faster than unit
sales of new vehicles.
* The U.S. vehicle scrappage rate in 2022 fell to 4.2%,
the lowest figure in two decades.
* Consumers are increasingly confident in vehicle
durability and are more likely to invest in maintenance
and repairs of an existing vehicle to further
extend service life.
These facts help explain why the traditional, non-dealer
aftermarket is projected to grow at a nearly 4% CAGR
(Compound Annual Growth Rate) through 2027. More40

Fixed Ops Magazine - 2023 Vol 20 02

Table of Contents for the Digital Edition of Fixed Ops Magazine - 2023 Vol 20 02

Fixed Ops Magazine - 2023 Vol 20 02 - 1
Fixed Ops Magazine - 2023 Vol 20 02 - 2
Fixed Ops Magazine - 2023 Vol 20 02 - 3
Fixed Ops Magazine - 2023 Vol 20 02 - 4
Fixed Ops Magazine - 2023 Vol 20 02 - 5
Fixed Ops Magazine - 2023 Vol 20 02 - 6
Fixed Ops Magazine - 2023 Vol 20 02 - 7
Fixed Ops Magazine - 2023 Vol 20 02 - 8
Fixed Ops Magazine - 2023 Vol 20 02 - 9
Fixed Ops Magazine - 2023 Vol 20 02 - 10
Fixed Ops Magazine - 2023 Vol 20 02 - 11
Fixed Ops Magazine - 2023 Vol 20 02 - 12
Fixed Ops Magazine - 2023 Vol 20 02 - 13
Fixed Ops Magazine - 2023 Vol 20 02 - 14
Fixed Ops Magazine - 2023 Vol 20 02 - 15
Fixed Ops Magazine - 2023 Vol 20 02 - 16
Fixed Ops Magazine - 2023 Vol 20 02 - 17
Fixed Ops Magazine - 2023 Vol 20 02 - 18
Fixed Ops Magazine - 2023 Vol 20 02 - 19
Fixed Ops Magazine - 2023 Vol 20 02 - 20
Fixed Ops Magazine - 2023 Vol 20 02 - 21
Fixed Ops Magazine - 2023 Vol 20 02 - 22
Fixed Ops Magazine - 2023 Vol 20 02 - 23
Fixed Ops Magazine - 2023 Vol 20 02 - 24
Fixed Ops Magazine - 2023 Vol 20 02 - 25
Fixed Ops Magazine - 2023 Vol 20 02 - 26
Fixed Ops Magazine - 2023 Vol 20 02 - 27
Fixed Ops Magazine - 2023 Vol 20 02 - 28
Fixed Ops Magazine - 2023 Vol 20 02 - 29
Fixed Ops Magazine - 2023 Vol 20 02 - 30
Fixed Ops Magazine - 2023 Vol 20 02 - 31
Fixed Ops Magazine - 2023 Vol 20 02 - 32
Fixed Ops Magazine - 2023 Vol 20 02 - 33
Fixed Ops Magazine - 2023 Vol 20 02 - 34
Fixed Ops Magazine - 2023 Vol 20 02 - 35
Fixed Ops Magazine - 2023 Vol 20 02 - 36
Fixed Ops Magazine - 2023 Vol 20 02 - 37
Fixed Ops Magazine - 2023 Vol 20 02 - 38
Fixed Ops Magazine - 2023 Vol 20 02 - 39
Fixed Ops Magazine - 2023 Vol 20 02 - 40
Fixed Ops Magazine - 2023 Vol 20 02 - 41
Fixed Ops Magazine - 2023 Vol 20 02 - 42
Fixed Ops Magazine - 2023 Vol 20 02 - 43
Fixed Ops Magazine - 2023 Vol 20 02 - 44
Fixed Ops Magazine - 2023 Vol 20 02 - 45
Fixed Ops Magazine - 2023 Vol 20 02 - 46
Fixed Ops Magazine - 2023 Vol 20 02 - 47
Fixed Ops Magazine - 2023 Vol 20 02 - 48
Fixed Ops Magazine - 2023 Vol 20 02 - 49
Fixed Ops Magazine - 2023 Vol 20 02 - 50
Fixed Ops Magazine - 2023 Vol 20 02 - 51
Fixed Ops Magazine - 2023 Vol 20 02 - 52
Fixed Ops Magazine - 2023 Vol 20 02 - 53
Fixed Ops Magazine - 2023 Vol 20 02 - 54
Fixed Ops Magazine - 2023 Vol 20 02 - 55
Fixed Ops Magazine - 2023 Vol 20 02 - 56
Fixed Ops Magazine - 2023 Vol 20 02 - 57
Fixed Ops Magazine - 2023 Vol 20 02 - 58
Fixed Ops Magazine - 2023 Vol 20 02 - 59
Fixed Ops Magazine - 2023 Vol 20 02 - 60
Fixed Ops Magazine - 2023 Vol 20 02 - 61
Fixed Ops Magazine - 2023 Vol 20 02 - 62
Fixed Ops Magazine - 2023 Vol 20 02 - 63
Fixed Ops Magazine - 2023 Vol 20 02 - 64
Fixed Ops Magazine - 2023 Vol 20 02 - 65
Fixed Ops Magazine - 2023 Vol 20 02 - 66
Fixed Ops Magazine - 2023 Vol 20 02 - 67
Fixed Ops Magazine - 2023 Vol 20 02 - 68
https://www.nxtbookmedia.com