According to What Car?, car dealers make an average of five to seven per cent profit on new cars, with profit margins rising to 12 to 15 per cent on used cars.
Unique market conditions, including ongoing supply challenges, have led to record vehicle prices in 2021 – but how do car dealers future-proof their revenue streams against changeable market conditions?
Now is the time to recognise the importance of aftersales as a revenue stream, and there are two reasons why dash cams are the perfect product to improve aftersales profitability: they are extremely easy to upsell and they offer large margins.
The lockdown effect
According to research commissioned by independent British brand Nextbase, the largest dash cam brand in the world, 14 per cent of 1,500 people surveyed admitted that they had completely forgotten how to drive their car following the national lockdowns.1
So a dash cam is an obvious choice for customers who want to protect their investment and themselves.
Studies have also shown that people feel safer behind the wheel when a dash cam is installed.2
When combined with a finance package, the additional cost of a dash cam is minimal and drivers can also benefit from appealing car insurance discounts.
At Nextbase, we have even launched our own car insurance scheme, giving the discounts that safe drivers deserve.
This makes dash cams easy to upsell, even for the least experienced members of a dealership team.
Brindley Honda saw the benefits of including Nextbase dash cams in its aftersales programme early on.
The Nextbase Automotive Dealership Set Up Program – including on-site sales training to ensure dealership teams can effectively upsell, full installation training, and bespoke point-of-sale materials to support sales activity – meant the team could leverage the dash cam as a sales tool immediately.
Brindley Honda’s implementation of dash cams has been so successful that this has now been extended to the service and parts department, offering all vehicle owners the chance to purchase a dash cam to protect their vehicle at each touchpoint with the dealership.
Service manager Stuart Bateman endorses Nextbase dash cams as ‘a great addition to our aftersales portfolio’.
Croydon Mazda is also reaping the benefits after recently adding dash cams to its aftersales programme for both new and used vehicles to maximise profits at its dealership.
In the space of two days, with on-site support from Nextbase, the dealership sales team and installation technicians had been trained, ready to include dash cams in the sales process and help vehicle owners enjoy peace of mind and security following their purchase.
To meet the rising consumer demand for personal and vehicle protection, reduced insurance premiums and safer roads, it is no surprise that dash cams are set to become an integral feature of dealership aftersales.
With the use of dash cams skyrocketing by 850 per cent in the past five years and continuing on the same trajectory, now is the time for dealerships to leverage this demand and capitalise on the guaranteed profits to be made.
If you are interested in discussing how you could add Nextbase dash cams to your aftersales programme, contact Neil Stewart via [email protected].