Dealers “very prepared” for shift to EVs while customer demand lags, Bumper finds
When selecting a service provider, consumers ranked service quality (35%) and affordability (27%) as their top priorities, followed by trust and reliability (14%).
A study by payment platform Bumper has revealed a disconnect between dealers’ preparations for electric vehicles (EVs) and the actual adoption and purchase intent among consumers.
While 92% of dealership workshops surveyed described themselves as ‘prepared’ or ‘very prepared’ for servicing EVs and hybrids, only 15% of customers currently own such vehicles, and just 13% planned to purchase one in the next three years.
Bumper’s Automotive Aftersales Report 2024/25, based on responses from 4,269 car owners and 520 service advisers, found that 40% of service advisers believe EVs will be the most influential trend shaping the aftersales sector over the next five years.
This was followed by concerns around the broader economic landscape (12%) and technological innovation (11%).
The majority of drivers (92%) continued to service their vehicles annually, and 69% use franchised dealerships.
However, while only 2% reported not servicing their vehicles at all, 48% had adjusted their maintenance habits due to the cost-of-living crisis.
In addition, 90% of those surveyed said they plan to keep vehicles for longer, 73% used finance to cover servicing costs, 51% had sought cheaper servicing options at independent garages, 38% delayed advisory work, and 15% had skipped servicing entirely.
When selecting a service provider, consumers ranked service quality (35%) and affordability (27%) as their top priorities, followed by trust and reliability (14%).
Most respondents (75%) expected a discount on their first visit, and 89% said they were more likely to return to providers offering interest-free finance.
However, customer loyalty is vulnerable if these incentives are not maintained: 57% said discontinuation of discounts would affect their decision to return, 51% expected the same discount on future visits, and 23% expect a larger discount over time.
Only 21% saw discounts as a one-time benefit.
Half of service advisers reported a shift in dealership priorities in 2024, with customer satisfaction and retention (70%) becoming the dominant focus.
Affordability of repairs was cited as the top operational challenge (26%), followed by changing customer expectations (18%) and parts availability (12%); time constraints (9%), low booking volumes (7%), and staffing shortages (6%) also emerged as persistent challenges.
In addition, 31% of advisers altered their discounting approach during the year. Of these: 61% increased discounting, 20% reduced discounts, 8% shifted to offering interest-free finance, and 8% applied targeted discounts.
Three-fifths (58%) of advisers observed changes in consumer behaviour. The most common included increased price sensitivity (44%), greater reliance on interest-free finance (21%), decreased acceptance of recommended work (13%), expectation of greater value without added cost (11%), and a tendency to keep vehicles longer (3%).
Service advisors identified the following areas for additional support: staffing and recruitment (18%), training and development (16%), enhancing interest-free finance options (16%), tools and equipment (8%), and workshop space (5%).
Daniel Christie, head of sales at Bumper, said: “As legislative pressure grows on carmakers to sell higher proportions of new EVs, our study shows how dealers have moved to invest in their workshop operations by tooling up and training for EVs and hybrids.
“However, there is a disconnect between what dealers now have in place and the EV ownership and buying intent of their customers.”
Christie added: “The aftersales market is at a pivotal moment, where the adoption of innovative tools, preparation for EVs and a focus on affordability will determine future success.
“While advances like interest-free finance and digital tools have proven transformative, dealerships must invest in training, staffing and infrastructure to meet evolving customer needs.”