The latest blog from automotive research and strategy organisation ICDP has warned dealerships that they could find themselves competing with independent bodyshops for work in the future.
Written after a conversation with Fix Auto UK Managing Director Ian Pugh, ICDP said that insurers are increasingly competing for customers in areas other than price, and in many cases that means allowing drivers to choose where they get their car repaired.
It said this could provide a competitive advantage to independent repairers who have invested in technology to increase efficiency and reduce, therefore providing a better claims experience.
The blog continued, “We also know that leasing is growing in most if not all European markets, and this is often not just the financing of the car, but the management of the maintenance and repair of the car throughout the lease through the bundling of service plans, and now to a limited but growing extent, the insurance of the car and therefore control over body repairs.
“With a growing share of BEVs, manufacturers may extend their operational leasing involvement into the second or third user. We also know that there is a general trend towards agency, or at least modifying the franchise terms to better support omni-channel sales networks, and that this will require more data and process integration.
“The expectation is that car buyers will not shop around between dealers on the basis of price, but on the basis of the customer experience.
“On the operational side, it will be far more important to reduce fixed and variable costs as there will be no significant upside on pricing. The skills of the people and the strength of the processes within the dealership will be far more important than the physical surroundings.”
