FEATURE BY JIM ROCHE DOUBLE DOWN ON SERVICE AI Can Boost Warranty Profits While Inventory Sits T he auto industry is facing a double whammy: shrinking margins on vehicle sales and a consumer base tightening its purse strings. Inventory is piling up on dealer lots. With consumer sentiment down, that doesn't appear to be changing anytime soon. This harsh reality demands a strategic shift for dealerships - doubling down on service. THE SERVICE DEPARTMENT: A BEACON OF HOPE While the car buying market presents challenges, the service department offers a beacon of hope. With consumers less willing to purchase new or used vehicles unless absolutely necessary, that means they're more likely to be looking to repair their current vehicle and keep it in tip top shape. Warranty sales, based on NADA data, are experiencing a healthy 6.8% growth. This is a positive sign, but there's a catch. Warranty work isn't the simple, straightforward process it used to be. 44