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Cost-of-living squeeze forces one in three young Victorians to put off car servicing

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First reported by VACC (Newsroom) ·

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The quick read

  • One in three young Victorians are delaying car servicing due to cost-of-living pressures.
  • Younger drivers and lower-income households are under the most strain.
  • Cost-of-living pressure is reshaping how people look after their cars.
  • Dealers who adapt to changing consumer behaviors may gain a competitive edge.

For dealers: Cost-of-living pressures are changing the way Victorians maintain their vehicles, and dealers who respond effectively may be able to attract and retain price-sensitive customers.

AI-assisted summary of the coverage below — check the original reporting before relying on specifics.

ADME commentary

The ADME angle

Younger Victorians are more likely to delay car servicing due to cost-of-living pressures, which could lead to a surge in repair work when these vehicles eventually come in for maintenance, potentially straining service department resources.

This trend may also impact the types of vehicles younger buyers are interested in, with a possible shift towards more affordable or lower-maintenance options.

What it means for service revenue

Dealers who can offer competitive pricing and flexible servicing options may be able to attract price-sensitive customers and retain their business, even in a challenging economic environment.

Lower-income households are also feeling the pinch, which could affect new vehicle sales as these buyers may be more likely to opt for used vehicles or delay purchases altogether.

Competitor response and market share

Dealers who adapt to these changing consumer behaviors and offer tailored solutions, such as service packages or financing options, may be able to gain a competitive edge and increase their market share.

To capitalize on this trend, dealers could focus on developing targeted marketing campaigns and lead handling strategies that speak directly to the needs and concerns of younger, budget-conscious buyers.

Taking action

This week, dealers could review their service department processes and pricing to identify opportunities to offer more competitive and flexible options, and start developing targeted marketing campaigns to attract price-sensitive customers.

Full coverage

VACC (Newsroom)Industry trade

Cost-of-living squeeze forces one in three young Victorians to put off car servicing

A new survey of Victorian motorists has found cost-of-living pressure is quietly reshaping how people look after their cars — with younger drivers and lower-income households under the most strain.

Read at VACC (Newsroom)

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