1:07 pm, July 30, 2026
Dealer profitability is increasingly being won or lost in the workshop rather than the showroom. While vehicle sales continue to dominate headlines, some of the biggest opportunities to protect margin now lie behind the scenes – in how efficiently dealerships source parts, prepare vehicles and manage supplier relationships.
Preparation costs continue to rise, repair inflation remains stubbornly high and vehicle technology is becoming more complex every year. At the same time, customers expect vehicles to be prepared quickly, repairs completed without delay and standards to remain consistently high.
The challenge for dealers is that many of these pressures sit outside their control. Labour rates continue to increase. Parts prices fluctuate. Vehicle technology continues to evolve.
However, one of the strongest messages to emerge from the recent WSG Dealer Summit was that while dealers cannot control the wider market, they can control how efficiently they operate. Businesses focusing on reducing preparation costs, improving workshop productivity and simplifying parts procurement are placing themselves in a much stronger position to protect profitability.
In WSG’s view, parts procurement is no longer simply an operational function. It is becoming a strategic commercial advantage.
The workshop is becoming the new profit centre
As new vehicle margins become increasingly competitive, many dealer groups are placing greater emphasis on aftersales profitability. Parts and service operations provide more consistent returns than vehicle sales alone, making workshop efficiency more valuable than ever before.
Several long-term trends are accelerating this shift. Repair inflation remains significantly above pre-pandemic levels as higher labour costs, increasingly sophisticated electronics and advanced driver assistance systems (ADAS) continue to increase the value of components required for even relatively routine repairs.
Meanwhile, motorists are keeping vehicles for longer because replacing them has become more expensive. As the average age of the UK vehicle parc continues to rise, demand for maintenance, servicing and replacement parts is increasing across both franchised dealers and independent retailers.
Although supply chains have improved considerably since recent disruption, sourcing certain OEM and specialist components remains challenging, increasing the value of suppliers capable of delivering consistent stock availability, alternative sourcing routes and rapid fulfilment. Collectively, these trends are changing how dealers view parts procurement.
Why supplier relationships matter more than ever
Many dealerships still underestimate the hidden cost of fragmented parts procurement. Managing multiple suppliers, chasing stock availability and sourcing specialist components all consume valuable workshop time. Those hidden operational costs rarely appear on a balance sheet, yet they have a direct impact on profitability, workshop utilisation and stock turn.
Increasingly, successful dealers are simplifying supplier management while building relationships with businesses capable of delivering both competitive pricing and dependable availability. Prep4Less was created to support exactly that objective.
Bringing together partners including Euro Car Parts, Charles Trent, Motorcheck and MotorCap, the programme gives dealers access to an expanding network of trusted suppliers through a single point of contact, helping reduce administration while improving access to both everyday service items and difficult-to-source specialist components.
The programme is also helping dealers prepare for the future. Partners within the Prep4Less network provide technical expertise, specialist support and access to reclaimed and green parts, an area that generated considerable discussion during the WSG Dealer Summit as dealers recognised the growing opportunity to reduce costs while maintaining quality.
The numbers tell their own story
Dealer demand through Prep4Less demonstrates just how diverse modern workshop requirements have become. More than £100,000 worth of components has recently been sourced through the programme across more than 20 product categories, including:
- £15,042 of electrical components
- £10,373 of steering and suspension parts
- £10,122 of workshop consumables
- £9,201 of braking components
- £5,167 of exhaust systems
- £4,486 of filtration products
- £3,663 of belts and tensioners
These figures demonstrate that savings are not confined to major repairs. They are being achieved across virtually every aspect of vehicle preparation.
Dealers using the programme are currently reducing their monthly spend on new parts by around 25%, creating meaningful savings across routine servicing, mechanical repairs and vehicle preparation.
The programme has also helped dealers source approximately £40,000 worth of replacement engines and gearboxes, alongside specialist electronic control modules and numerous difficult-to-source components that might otherwise have delayed vehicles reaching the forecourt.
For dealers including Martins and Gatehouse, access to a broader supplier network has helped reduce delays while improving workshop efficiency. The lesson is clear. Smarter procurement is no longer simply about reducing the price of individual parts. It is about improving the efficiency of the entire preparation process.
The cheapest part isn’t always the smartest purchase
One of the biggest shifts taking place across the aftermarket is the growing importance of availability over price. For many dealerships, the commercial cost of waiting several extra days for a critical component now outweighs the saving achieved by buying the cheapest available part.
Every additional day a vehicle remains off sale ties up capital, slows stock turn and reduces profitability. Delegates at the WSG Dealer Summit repeatedly highlighted that reducing vehicle-off-road (VOR) time has become one of the most effective ways to improve workshop performance and customer satisfaction. The fastest available part is increasingly proving to be the most profitable one.
Tomorrow’s workshop will look very different
Electrification is also changing dealer aftersales operations. Data shared during the WSG Dealer Summit highlighted just how quickly consumer demand is evolving. In 2022, just one in every 50 searches on Auto Trader related to electric vehicles. Today, that figure has increased to one in every five, demonstrating how rapidly the used EV market is maturing.
However, success in this market requires more than simply stocking electric vehicles. Customers increasingly want reassurance around battery health, vehicle range and long-term ownership costs. Dealers who invest in specialist knowledge, technical expertise and appropriate preparation processes will be significantly better placed to capitalise on growing demand.
WSG’s own claims experience reflects this changing landscape. While EV warranty claims remain less frequent than those for petrol and diesel vehicles, they are typically more expensive because specialist components remain costlier and less widely available. As EV volumes continue to increase, dealer parts operations will need to evolve accordingly.
Operational efficiency will define tomorrow’s winners
The dealerships that achieve the strongest profitability over the coming years are unlikely to be those that simply buy vehicles more cheaply than their competitors. They will be the businesses that prepare vehicles faster, reduce unnecessary operational costs and build supplier relationships capable of supporting increasingly complex repair requirements.
In an industry where every day, every repair and every pound of margin matters, smarter parts procurement is becoming far more than a purchasing decision. It is becoming a competitive advantage.
For more information about Prep4Less, click here to visit the website or contact Darren Smith – click here to get in touch.