Sellers providing reductions on servicing and restore work to achieve enterprise in a good market threat buying and selling buyer retention for eroded margins and long-term harm to their companies.
That’s the conclusion of the Bumper UK Automotive Aftersales Report 2024/25, which discovered that three-quarters of the 4,269 automobile house owners polled for the forthcoming mentioned they count on sellers to supply an preliminary low cost on the costs they quote for aftersales work.
With regards to subsequent jobs over half (51%) count on the identical degree of reductions and practically 1 / 4 (23%) count on even bigger reductions. Solely 20% view such reductions as a one-off provide.
Dealerships who fail to supply the identical, or higher, reductions on subsequent visits run the chance of shedding repeat enterprise with 57% of respondents saying it could have an effect on their chance of returning.
Nevertheless, the analysis discovered sellers providing interest-free financing to unfold the prices of payments have been more likely to have stronger buyer retention charges, with 89% of respondents saying they have been extra more likely to return to a seller offering it as an choice.
“Discounting can only ever deliver a quick fix as it erodes profit margins and once withdrawn can have a damaging impact on repeat business,” mentioned Daniel Christie, Bumper’s Head of Gross sales.
“The research shows how interest-free monthly payment options deliver a more consistent long-term solution to winning business and then retaining customers, while delivering transparency and protecting margins,” he mentioned.
The analysis additionally recognized that over 1 / 4 (27%) of shoppers spent between £500-£1,000 on servicing and restore work within the final 12 months.
Larger and decrease payments have been equally balanced with 21% paying £250-£500 and 21% paying £1,000-£2,000. Payments totalling as much as £5,000 have been paid by simply 3% of respondents.
