According to the most recent Cox Automotive review of Xtime measurements, service activity at U.S. franchised dealerships declined in January but service income grew month over month. In comparison to January 2022, both the Repair Order Revenue Index and the Repair Order Volume Index increased.
The data is tied to January 2019, and the monthly Xtime volume and revenue indicators are made to demonstrate the typical service department performance over time. The two top-line measurements offer a view into the performance of the service departments of franchised dealerships in the U.S. Software from Xtime, a Cox Automotive brand, assists auto dealers in scheduling more than 10 million service appointments each month.
The downwardly revised December figure was down 3.6% month over month, and the January Repair Order Volume Index, which fell to 82.9, was up 3.4% from January 2022. According to Cox Automotive Chief Economist Jonanthan Smoke, “The fall in the January Repair Order Volume Index is likely a capacity issue, from shortages of both technicians and parts, as opposed to declining consumer demand.” The need for services is still high, and dealers typically experience high levels of resilience in this sector throughout a downturn in the economy.
According to research, consumers are keeping their cars longer and repairing them rather than selling them. These expensive repairs, together with inflation, are assisting in maintaining high service revenue.
Whereas, the Repair Order Revenue Index for January increased 1.3% from the upwardly revised value for December and is up 8.4% year over year at 130.8. The average amount of money made from each repair order grew by $7, reaching an index high.
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