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The Shift—ADAS Creates More Demand For Lexus Genuine Parts Sales

The Shift—ADAS Creates More Demand For Lexus Genuine Parts Sales

Technology is changing the automotive industry. According to a report by the Insurance Institute for Highway Safety (IIHS)*, Advanced Driver Assistance Systems (ADAS) are reducing the number of police-reported crashes and insurance claims. On the surface, this may be interpreted as having a negative affect on collision parts revenue, but the reality is that for those vehicles that are in an accident, often, the parts of the vehicle that are damaged have various sensors that should be replaced with Lexus Genuine Parts to ensure optimum functionality once repairs are complete.

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OPPORTUNITIES TO INCREASE PARTS SALES

Looking at the overall marketplace, it provides Lexus dealers with two opportunities for parts sales growth. According to the National Automobile Dealers Association (NADA) in their Full Year Report for 2021**, total parts sales of automotive dealers last year was $74.49 billion.

Here are two areas where Lexus dealers can focus on increasing parts sales:

  1. Sales to Collision Repair Facilities (CRF)
  2. Sales to Independent Repair Facilities (IRF)

In both areas, your primary competition is the aftermarket. But the reality is that Lexus Genuine Parts are built to the same specifications as the parts in the new vehicle. That means they fit right the first time, deliver the same quality and performance as the original parts, and adhere to industry quality standards. 

Unlike Lexus Genuine Parts, aftermarket parts are not regulated or standardized. They may not be tested to determine how they perform in an accident. Plus, Lexus Genuine Parts are backed by Lexus, while aftermarket parts may or may not come with a warranty.

“There is only one way to fix a Lexus and that is to fix it correctly using Lexus Genuine Parts. Too often, shops are more focused on the cost of repairs versus fixing the vehicle correctly.”

—Steve Olson,
Managing Partner and Director
Louisville Collision Center in Louisville, Kentucky

So, the shift is that while collisions may be down, CRFs still need a source for parts; and while wholesale parts are a bigger segment, the question is: Do the CRFs and IRFs in your area know that you are their best source for Lexus Genuine Parts?

WHAT’S IN YOUR MARKETING TOOLBOX

How can you build your parts business? Here are some suggestions:

  • Define your market: your Lexus Rep can provide you with a report that allows you to see who the top performing IRFs and CRFs are in your area.
  • Go “old school” – make cold calls to the IRFs and CRFs in your area.
  • Hold an “Open House” – invite IRFs and CRFs to come to your dealership where you can host a presentation that educates them on all the benefits of using Lexus Genuine Parts.
  • Targeted marketing through email – create a mailer that explains the benefits of Lexus Genuine Parts and sourcing them from your dealership.
  • Social Medial – consider Facebooks ads, and other targeted media.
  • Raise awareness in your local community – consider going Door Knocking and visit the top-performing IRFs and CRFs in your area.

THE BENEFITS OF LEXUS GENUINE PARTS 

When in discussion with the IRFs and CRFs in your area, you may hear a statement like this, “Lexus Genuine Parts are more expensive than aftermarket parts.” As Olson noted, “Lexus gives us a rebate to match the cost of aftermarket parts.” So, make sure your IRFs and CRFs are aware of this program. Olson also added that working with Lexus gives him an edge over other CRFs in the area because, “I can tell customers that we are the Lexus-certified shop in the area. That gives Lexus owners added peace of mind.” 

In addition, be sure to educate your IRF partners regarding the risks of using aftermarket parts when repairing vehicles with ADAS. The fact is that some of the most frequently damaged parts in a collision are part of ADAS and installing Lexus Genuine Parts is the only way to ensure the factory-installed safety systems will operate as intended after the repairs are performed.

Communicate to your IRFs that Lexus Genuine Parts are an exact match to the damaged part, right down to the weight of the part. And when it comes to parts, weight matters because after a collision, ADAS systems must be recalibrated, and if a shop uses a non-genuine part, the wrong weight can affect the calibration, which, in turn, can affect ADAS performance in an emergency.

THE BOTTOM LINE

The best news is that ADAS is helping to reduce the number of accidents. But while the total collision repair market may be shrinking, the demand for Lexus Genuine Parts will remain strong for both collision and wholesale parts. Olson concludes, “Over the last 10 years, vehicles have become more complex. Repairability has gone down. There are rules what you can and cannot do. That’s why Lexus guests win when a collision repair shop uses Lexus Genuine Parts.”

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