Covid-19 proved how important it is to have diversified revenue streams.
Most Dealers would agree, to be successful, you need to find and introduce new revenue streams.
That brings us to the question, what new revenue streams are available for Car Dealerships in 2023?
EasyCars has put together 5 Popular New Revenue Streams that your Dealership Can Use to earn More in 2023.
Let’s get into it.
1. Vehicle Leasing
Vehicle Leasing has exploded in popularity over the last 12 months. With Used Car prices reaching unthinkable levels and new cars still facing delays, Australians are now turning to vehicle leasing to get on the road.
Vehicle Leasing has appeared as one of the most inexpensive and effective ways that Motor Dealerships can make quick, recurring revenue whilst you wait for a buyer. What dealerships are doing is leasing a vehicle for a short time for a weekly fee whilst that same car is advertised for sale online.
The best part of vehicle leasing is it doesn’t require significant investment. All you will need to do is discuss insurance options, lease terms and price. If you have the vehicles, you can start leasing today, it’s that simple!
2. Vehicle Sales Training
To introduce new revenue streams, you need to think outside of the box. Another popular new revenue stream that many dealers are taking advantage of is Vehicle Sales Training and Seminars.
The Australian Automotive Industry is a very large and competitive industry. Every day new dealerships and sellers will enter the market. To take advantage of the growth, current dealers are offering new potential dealers training courses, seminars and one on one coaching for a nominal fee.
The benefit of introducing a Vehicle Sales Training offering at your dealership is it is cheap. Think about it, all you need to do is share your experiences, life lessons and skills with potential new dealers. Holding a training seminar or course is a quickfire way to drive new revenue at your dealership in 2023.
3. Vehicle Part Sales
There is only so much money you can make off a Vehicle Sale alone. To be successful in 2023 and beyond you need to find ways to keep your customers spending. A new way that dealerships are driving revenue is by selling vehicle parts and accessories direct to the customer.
Most Car Buyers are planning to customize their vehicle to meet their own unique requirements. Statistics show that people spent over $7 billion dollars customising their vehicles in 2022. Whether it be new interior items, vehicle rims, whatever, what better way to make money than offering it whilst you are selling them the car.
Look for ways to source vehicle accessories that you can package together with the vehicle sale itself. The benefit of selling vehicle accessories is you can earn additional revenue from your vehicle sale that you wouldn’t generally get.
4. Insurance Sales
Dealer Finance has been a popular additional revenue stream for Motor Dealerships for generations. But, there is so many other options you can offer customers to drive greater revenue. A new popular dealer service is Insurance Sales.
Think of Insurance Sales like Dealer Finance, you can use a broker to find your customer the best insurance deal. If they convert, you will receive a commission. Every car buyer will need insurance, what better opportunity is there to make money than offering it to them directly whilst you are selling them the car?
5. Vehicle Servicing
For dealerships with the capacity, another popular new revenue stream that has been doing wonders is offering Vehicle Servicing. No, we are not saying to open your own Mechanical Workshop. But what many dealerships are doing is offering customers the basic simple vehicle servicing and checks.
All cars will need to be serviced, having a servicing option can and will open your dealerships doors to a large pool of consistent, recurring revenue. It is important to note that offering a servicing option will require investment.
To be successful in 2023 and beyond your dealership needs to find and introduce new ways of generating revenue. The 5 new revenue streams presented are a few new ways that your dealership can increase revenue in 2023 and beyond.
We hope you enjoyed reading this article. To read more articles like this, please visit the EasyCars latest news page here.
DISCLAIMER – The content within this blog does not constitute professional advice and is intended to be general in nature. Please consult with all relevant parties prior to actioning any changes.
EasyCars by Jeal is an Australian, web-based, dealer management system that automates the buying and selling of motor vehicles. Using the latest technologies, EasyCars removes frustrations experienced at the dealership and opens your doors for greater growth.
EasyCars features include Simple Stock Management, Automated Advertising, Integrated Accounting, Government Compliance, Business Reporting, Facebook Automotive Inventory Ads, Reviews Management, Dealership Websites and more.
To learn more about EasyCars Dealer Management System or to arrange a no-obligation free demo, contact us today on 1300 473 744.