Bringing in-house revenue streams that your dealership would traditionally outsource could be the difference between a thriving business and one just making the cut, especially as the industry is seeing new car profitably drop nationally by an estimated $432. Here to discuss how you can build out a successful alternative for revenue and benefits that would follow is Trevor Gile, Managing Partner of Motorcars Honda out of Cleveland Ohio.
In the last eight or so years, Trevor and his partners started looking at different ways to expand their dealerships within the auto industry. The intervals at which they were seeing return customers, was continuing to spread out further and further, so exploring new revenue streams was essential.
Motorcars Honda became the very first carbon neutral dealer in the world through its partnership with BP Global, and it continues to try and push the boundaries with other various ventures. One being, an express service lane that provides routine maintenance and washes to over 30 cars an hour. The express lane has also clocked an oil change at two minutes and seventeen seconds. They are sure trying their best to challenge the stigma that dealers take too long and cost too much.
Most dealers also look at in-bay wash as an expense, with one or two employees occupied at any given time. So, Trevor decided to use the additional space they had in their used lot to open a tunnel wash to the public as well as dealership customers called Rainforest Car Wash. And keeping with the green them, 60-70 percent of the water used is recyclable.
It’s unlikely that profits will get better in the new car department or service departments. So, in the long term, Trevor and his team also built their own software to manage rental cars. They manage 13 to 14 cars and generate $8,000 a month. This is in addition to starting an insurance agency in the dealership which became profitable in less than 90 days. Ultimately, as much as these endeavors benefit the dealer group, they also give the customers an overall better experience; they don’t have to worry about anything.