Category: EFG Companies

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EFG Companies Featured Fixed Operations

In Fixed Ops, Coordination Counts

When was the last time you did a health check of your fixed operations (fixed ops) department? How is fixed ops affecting your CSI scores? Is the department helping or hurting your customer retention efforts?

According to Cox Automotive, fixed operations as a profit center is more important than ever in 2023. Dealers should see continued strong dynamics in the service lanes, with or without a recession, as owners try to hold onto their vehicles longer. While the average ticket size increased in 2022, revenue is not a guarantee. In order to be successful in fixed operations, all of the cogs must be coordinated – not only within each dealership’s service bays but across rooftops as well.

Savvy dealers take a holistic approach to fixed ops, sales and F&I with the understanding that each area of the dealership directly impacts overall dealership operations and the total customer experience. While each department might occupy a separate line item in the spreadsheet, failure to understand and capitalize on a coordinated customer service approach reduces efficiency, profitability and customer retention. Let’s look at a scenario where lack of coordination within the service department impacted the bottom line.

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EFG Companies Electric Vehicles

The Infrastructure of Electric Vehicle Sales

Electric vehicles are a hot topic these days – for consumers and automotive dealers alike. However, not all electric vehicles are alike. Like any new product, consumers can be confused and overwhelmed. A dealer’s success in selling any type of electric vehicle requires your staff to be knowledgeable on the product details and trained to guide the customer through the buying decision process.

Electric vehicles on the road today

Battery Electric Vehicles (BEVs)

BEVs—also referred to as “all-electric vehicles”—run on electricity only and are recharged from an external power source. They are propelled by one or more electric motor powered by rechargeable battery packs.

Plug-In Hybrid Electric Vehicles (PHEVs)

PHEVs also use batteries to power an electric motor and can be recharged from an external power source, but they incorporate a smaller internal combustion engine that can recharge the battery (or in some models, directly power the wheels) to allow for longer driving ranges. When electricity is unavailable, PHEVs can run on gasoline alone.

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EFG Companies F&I

High Mileage Vehicles Need High Mileage Solutions

According to S&P Global Mobility, the average age of vehicles on the road in the U.S. rose to a record 12.2 years in 2022, representing a two percent increase from 2021.  Twenty years ago, a car might have changed hands once or twice and lasted 100,000 miles, Today, it is more common for a car to have multiple owners and last for 200,000 miles or more. This extended life cycle of today’s cars creates more value for both owners and dealers – but with one caveat. These high mileage vehicles need high mileage protection to keep the car and its value in tiptop shape.

There are a couple of other issues at play, prompting consumers to keep a vehicle past its ‘prime.’ Thanks to rising new vehicle prices, many consumers are financing their vehicles for upwards of eight years in order to keep the monthly payment in an affordable range. Consumers also factor in long-term reliability when choosing a vehicle, a key criteria in OEM marketing and brand preference.

Today’s older cars also retain their drivability and are in better shape than the days of a heavy metal chassis. Vehicle manufacturers are building cars with a longer lifespan, leveraging improved assembly processes, better materials, and placing an emphasis on vehicle safety guidance from the National Highway Traffic Safety Administration and the Federal Motor Vehicle Safety Standards and Regulations. As a result, many of the top 15 longest-lasting cars are likely to reach 200,000 miles or more and also are ranked as the best-selling vehicles, based on automotive research firm iSeeCars.com.

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