We wanted to highlight to customers who have arranged their car dealers insurance through our site that data from autoVHC has revealed that car dealers across the UK are losing a small fortune by failing to sell urgently required work during vehicle health checks.
The data shows that on average, dealers fail to sell 46% of Red work, which is worth £99,200 in revenue to each dealer. Red work is work that is urgently required and would mean the vehicle is unsafe to drive if not carried out and that the owner would be breaking the law by driving.
The data from autoVHC also showed that the average dealer completes only 70% of available health checks in a 12 month period.
Compared with figures from 2014, the loss has gotten even larger. Back then dealers were losing an average of £92,145 by failing to sell Red work, which when totalled across the UK’s 4,900+ franchise dealers, equated to a staggering number of more than £450M in lost revenue.
autoVHC Business Unit Director Chris Saunders said: “Missing out on such a significant amount of aftersales work poses a number of concerns for dealerships.
“Failing to sell work that is urgently required typically means customers are choosing to have it completed outside of the franchised sector.