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KPMG is advising dealers to encourage their customers to book their cars in for service now to avoid long waiting lists – and potentially losing customers to competitors – as governments progressively ease social distancing rules.

David Brown, a senior manager with KPMG Motor Industry Services told GoAutoNews Premium: “Dealers should be using this time, as restrictions start to ease, to encourage customers to take advantage of the reduced wait times currently at most dealerships.

“With offices and places of non-essential employment all working from home, service clients now have time to service a vehicle outside the regular time constraints of office work.

“I believe in the coming months that service departments will see an influx of service customers, and dealerships need to ensure that they are on the top of the list for a service call.”

Mr Brown said that service sales during the shutdown have not dipped as much as new vehicle sales.

“Most dealers we are talking to are quoting service levels of about 80 per cent of pre-COVID-19 service levels. Some of them have done that by choice by trying to avoid too many people flooding in at the one time on a daily basis.

“Inner city dealers have suffered a bit more because with everyone working from home their customers were not travelling into the city. These dealers were quoting around 60 per cent of pre-COVID capacity.”

Mr Brown said no-shows did increase early however dealers moved swiftly to reassure customers of additional steps being taken to protect both customer and dealer staff.

“A lot of dealers reacted very well and should be commended for quickly reassuring the general public about social distancing at counters, wiping down car keys and other sanitising safety measures they were taking when getting cars serviced.

“It was great to get that in place so early but dealers should now be exploiting the fact that people have more flexibility to get their car serviced because their work days are structured differently at this time.

“I think we will find there are a lot of people who have been working from home for eight weeks and, while work eats up a fair portion of the day, they are no longer bound by having to drop the car at the dealership at 7.30 am to get into work on time.

“They can take a break and get the car in at their local dealership at 10.30 before getting back home to continue working.”

Mr Brown said that many service departments run waiting lists in normal times so that car owners who have delayed their service during the shutdown will be up against that normal demand when they eventually decide to book their car in when they start going back to work.

“Those dealers that are sitting around the 80 per cent mark and have capacity should especially be really trying to prospect and fill the workshop up again.

“Dealers should be letting their customers know that they can maximise their flexibility now to avoid the longer waiting times as everyone starts to wake up and go back to work and realize their car needs a service.

“Dealers need to tell them to jump in and get it done now,” he said.

David Brown

“For that they need to be prospecting in their CRM data. They need to make sure their data is tidy and up-to-date and that their processes can cope with a customer base past the three to five year warranty mark. Most importantly they should make sure that the process is there to guarantee those customers good customer experience and good customer satisfaction when they do come in for a service.”

Mr Brown said that dealers should also consider the service needs of customers who may now delay replacing their car due to the economic effects of the virus.

“Consumer confidence is low so customers are more likely to hold onto an existing vehicle for longer; meaning it will need to be serviced.

“If you consider people who are in a car who would normally be looking at replacing it now, they may well consider hanging on to it while they see what happens with the economy and their jobs. Instead of changing out of their car they may well consider getting it serviced and getting tyres etc and with cars in that three-to-four year period that will be a big service, too.

“So dealers need to be mindful of looking after those customers and treat them well because if they leave with a smile on their face then hopefully they will come back and trade the car in at that dealership.

“So the likelihood is that many people will be keeping their cars a little longer than they would before the pandemic took place because they are looking to save a few dollars.”

Mr Brown said dealers should remind customers on leases of their obligations to have their lease cars serviced in a timely manner otherwise they could face penalties at the end of the lease.

Meanwhile the Federal Chamber of Automotive Industries (FCAI) has pressed the necessity for regular and ongoing vehicle maintenance schedules to allow motorists reliable transport to attend essential functions, including health care appointments, shopping for essential items, or where necessary, travelling to work.

The FCAI said vehicle and motorcycle dealerships are open for business, despite the impact of the COVID-19 virus.

“To ensure commuters’ vehicles are in prime operating order, dealerships from all brands around Australia have opted to remain open to provide sales support and essential maintenance services,” the FCAI said.

“This allows customers to safely replace their current vehicle or motorcycle should the need arise.

“To facilitate the purchasing process, the chamber understands that short evaluation or test drives are permissible for prospective customers wishing to purchase a vehicle for their essential commuting requirements.

“In addition, available after-sales facilities ensure customers are able to have their car or motorcycle professionally serviced to ensure it remains in prime operating condition.”

It said that dealers were observing all the hygiene practices and many have included additional precautions to safeguard their customers. These include:

  • Virtual sales and service consultations
  • Contact-free drop off and pick up of serviced vehicles
  • Contact-free delivery of vehicles for evaluation drives
  • Enhanced detailing and disinfecting practices
  • Physical distancing in sales and service facilities

By John Mellor

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