Contents of Auto Dealer Monthly - APR 2012

Auto Dealer Monthly Magazine is the daily operations publication serving the retail automotive industry. This automotive publication serves dealer principals, officers and general managers with the latest best practices.

Page 28 of 62

he hired a contractor. As for the service equipment, he's still using much of it from the old shop but had to purchase a couple more lifts, brake lathes and compressors for the new facility. For those, he relied on the same vendors that equipped his old department. In total, the new service department cost $145,000.
Generally speaking, the new location at te independent store is seeing more service business; however, the type of business has shifted. Now, the independent dealership primarily services vehicles of past customers and new sales customers, while walk-up traffic has decreased. Sedano speculated that more walk-in traffic visited the old service department because it looked more like an independent service shop not affiliated with a dealership.
Ultimately, he's happy with both sales and service in the same location, saying it simplifies things. "[It] helps people to be more aware of what's going on in the shop … Now everybody's housed in the same facility, so it's a lot easier to check on and hand the sales customer over to service department," he said, adding that when the two departments were separate, it was "almost like running two businesses" even though it was technically one.
Another dealership with new digs is Basney Honda in Mishawaka, Ind. Originally built in the 1980s, the time had come to revamp both the sales and service depart- ments. Parts and Service Director Fred Barclay said, "The service department defi- nitely needed to be improved." The dealership had outgrown the old shop and was due for some upgrading.
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