Dealers lose aftersales business in cost-of-living crisis

Dealers are losing aftersales business as motorists cut back on car servicing and maintenance.

A third of drivers in Great Britain have admitted to skipping an essential service on their car due to the cost of living crisis.

The squeeze is hitting younger drivers hardest, with almost half (43%) of 18-34 year olds likely to bypass vehicle maintenance in order to save money, according to a survey from Volkswagen Financial Services.

The survey reveals that less than half (40%) of drivers would feel fully prepared if they needed to pay for work needed to keep their vehicle safe.

Older drivers feel more prepared than their younger counterparts – the over 75s are the most confident with 63% stating they’d be able to pay, vs only 30% in those aged 25-34 years.

More finance companies are now offering finance for servicing spreading the cost in instalments to make it easier to pay.

Almost two thirds (58%) of drivers would be interested in spreading the cost of vehicle maintenance in more manageable instalments, a figure which is significantly higher in the under 35s (79%).

Mike Todd, CEO at Volkswagen Financial Services UK, said: “The cost of living crisis has left many drivers contemplating the difficult decision to skip essential vehicle maintenance and compromise safety, particularly the younger drivers on the road.

“1 in 4 have experienced a cost which could have been avoided with regular servicing. As an industry we should be supporting drivers in their entire vehicle ownership and usership journey. That means offering service options which cater to various needs and budgets so all drivers on the roads are in safe vehicles.”

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