EVs Boost Dealership Profits: A New Era for Auto Service
When the big publicly traded dealership groups reported their Q3 profits, a trend emerged: Parts and service revenue is up across the board. The proliferation of EVs, with their higher average repair costs and susceptibility to weather, appears to be a major contributing factor.
In a special report, CBT News tracks fixed ops revenue among the groups and insight from executives at Penske Automotive Group and Asbury Automotive Group, including Asbury CEO David Hult.
“Hult noted that battery-electric vehicles (BEVs) offer significant benefits for service departments. In Q3, the average repair order for BEVs was $865, compared to $629 for plug-in hybrids and $517 for ICE vehicles,” the report states, in part.
