Franchised dealers who fail to sell cars with service plans are losing one in five customers to independent garages for servicing work.
According to new consumer research from JudgeService, most owners (41%) the most popular place to get their car serviced is the dealer they purchased from, but only if they also took out a service plan.
Without service plans this figure drops down to just 15%, while a further 18% of customers choose another main dealer.
However, most customers who do not buy service plans (20%) take their business to local independent garages.
Preference for independent workshops is strongest among owners who bought from car supermarkets (47%), followed by those who bought from volume brand dealers (20%).
Overall, fast fit operators have a more limited appeal with just 4% of buyers saying they use them for servicing work.
“For franchised dealers retaining servicing work is every bit as important as making the initial vehicle sale. Yet some dealers run the risk of losing invaluable aftersales business forever by not offering service plans with every car they sell,” said Neil Addley, managing director of JudgeService.
“Dealers with processes in place to consistently offer service plans reap the bottom-line benefits and with shrinking markets for new and used car sales, every opportunity to sell them needs to be maximised.
“Servicing gives dealers the opportunity to build lasting relationships by delivering the best possible customer satisfaction, build retention for future car purchases and drive more profitability across the business.”