Your dealership likely has segments of target customers for your service department. There are new vehicle buyers to consider, along with existing clientele and conquest customers all on your radar. However, you might be missing out on an important segment of drivers that deserve your attention, those with high-mileage vehicles!
Keeping a high-mileage vehicle on the road requires much more attention to scheduled and preventative maintenance than models with fewer miles. This presents an opportunity for your service department and Fixed Ops profitability that you should be taking advantage of.
High Mileage Vehicle Statistics to Know
Before digging into more strategic details for your service drive, let’s break down vehicle mileage and ownership statistics. According to the United States Department of Transportation Federal Highway Administration, in 2019 the average person drove over 14k miles. As vehicle longevity improves and new vehicle prices continue to rise, people are keeping their cars longer than ever before. IHS Markit found the average length of vehicle ownership is 11.9 years. Given these statistics, vehicles will have approximately an average of 166K miles on them by the time they seek a newer model (keep this in mind as an average figure, as many vehicles will have much more).
High Mileage Vehicle Awareness
Over time as the aftermarket gained popularity, the automotive industry introduced (and even mandated) installing express loop operations within the service department. This resulted in having separate express and main shops, also splitting up talented service advisors and technicians. Customers coming in for basic “express” services such as an oil change are being seen by newer and less experienced technicians, whereas the more seasoned techs are performing diagnoses and repairs in another service drive.
The problem with the divide of express operations is that less experienced technicians are writing up high-mileage vehicles without recommending additional preventative or diagnostic services. The seasoned technicians in the “main” service department are primarily doing recalls and warranty work.
What is High Mileage Awareness?
Mileage awareness is the concept of a service department manager determining which service advisors and technicians should be handling certain vehicles based on their mileage, instead of customers determining who writes up their vehicle based on the door they drive through.
How You Can Increase Mileage Awareness
The fix to this is about maximizing the knowledge and talent you have in your service drive. Once a manager recognizes the missed opportunities, the entire department can get on the same page regarding the significance of the different mileage bands. From there, a process can be developed and implemented to route cars in various mileage bands to certain technician talent.
When considering high mileage vehicles, you want not only a technician knowledgeable enough to perform maintenance and repairs, but also someone with great selling skills.
Types of Selling Opportunities Based on Vehicle Mileage Bands
Within each OEM, there are different mileage bands that represent different types of selling opportunities regarding maintenance and repair services. The most common industry standard for upsell opportunities for CP type work are cars with over 60K miles.
Leveraging High Mileage Awareness to Enhance Customer Satisfaction
When customer’s know their vehicles are being serviced by specific technicians and advisors who are well-versed in the needs of high mileage vehicles, you’ll increase their satisfaction and the likelihood of them coming back! Building and maintaining trusting relationships with your customers is the key to ensuring they come back to you not only for further service, but potentially for new vehicle purchases in the future!
Start Taking Advantage of High Mileage Vehicles
Implementing a new process to maximize the talent you have while being mindful of high mileage vehicles in your service drive can seem like a daunting task. Dynatron’s Coaches have the proven ability to build and implement customized processes for your service department to ensure success! We will also build the reporting you need to monitor your performance and implement changes as needed. Taking advantage of Mileage Awareness is one of the hidden ways Dynatron helps Service Departments increase their CP ELR more than $11 within the first 90 days!