In recent years, the service department has grown increasingly important to a dealership's bottom
line. According to an IHS Markit mid-year report in 2021, the average age of a passenger vehicle on
the road rose to 12.1 years, accelerated in part by new vehicle inventory shortages prompting
customers to hold on to their vehicles longer.
In that same report, IHS Markit noted the industry is entering a period of strong growth in the
aftermarket "sweet spot" – those vehicles 6-11 years of age – as record sales years begin moving into
that age group over the next 5 years. In combination with ongoing inventory shortages, this
represents a massive opportunity for dealers to maximize their service department.
The Value of the Service Drive in 2022
