Business 14 www.aftermarketonline.net DECEMBER/JANUARY 2025 Cashing in on the aftersales market Independent garages are in demand with consumers keeping their cars for longer. But they are also under pressure. Older cars need more repairs. They require more replacement parts, tyres and fluids. With car owners looking for value and a fast turn-around, independents are actively seeking the most efficient and effective way to source those parts to achieve that vital first-time fix. Most independent garages would prefer to use genuine parts, which are far more likely to fit and work as expected. But they also need to balance speed of delivery and cost — if the local franchise dealer is not able to provide the right part, at the right time and price, there are plenty of alternatives. The rise in aftermarket demand is set to continue until 2040 at least, and franchise dealers should be champing at the bit to boost revenue and radically expand their trade parts sales. It’s complicated, but many manufacturers already have a fantastic foundation in place for this model, albeit on a small scale. Demands of older cars The shift to electric vehicles — albeit slower recently — at a time of economic hardship has had a dramatic impact on consumer behaviour. Drivers are keeping their cars for longer; the average age of a car in the UK is now almost 9 years (according to Auto Express, April 2024). Manufacturers and the franchise dealer network have an opportunity to respond to this shift in buying behaviour. With just 35% of three-year-old cars returning to the franchise for servicing falling to less than 10% for a five-yearold car for some brands, the ‘how, when and where’ older cars are repaired and serviced is sometimes not considered. Yet to safely extend the life of a vehicle, drivers are spending more than ever on servicing and repairs. A 10-year-old car demands more replacement parts and repairs than its two-year-old equivalent — and that is a market that some manufacturers are failing to maximise. Yes, franchise dealers have parts departments that provide the independent trade with the genuine parts they cannot source elsewhere. Some have added an all-makes range and even offer trade club programmes, with dealers encouraged to register independent garages into loyalty schemes. Yet at a time of extraordinary uncertainty throughout the automotive industry, with the disruption created Grant O’Hara, head of commercial development at business consulting and services firm One Nexus, says auto firms globally should embrace ‘a proactive aftersales mindset’ to boost trade and loyalty parts programmes and spur business growth
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