As the automotive industry faces an uncertain future, one question looms large: What should dealerships do to continue growing? Now more than ever, parts departments have the chance to drive true recession-proof profitability.
Amidst uncertainty, lean into the opportunity parts present
The tariffs on imported automobiles are going to make vehicles more expensive for the foreseeable future, pushing many to delay purchases. This will likely lead to a prolonged slump in sales, with no clear timeline for recovery.
The reality is, now is not the time for panic. Dealerships are no strangers to economic challenges. During the COVID-19 pandemic, for instance, while new vehicle sales in the U.S. experienced a decline, the industry adapted to stay afloat. This led to recovery, with sales reaching 15.9 million units in 2024, marking a five-year high.
“The landscape is shifting, but with every change, there’s an opportunity. Dealers have a chance to build a stronger, more resilient FixedOps strategy in the face of these challenges,”
– Ted Ings, CEO of the Fixed Ops Roundtable
Consumers are likely to rely more heavily on parts and service in coming years to maintain their vehicles. This shift demands that dealerships focus on building a stronger fixed ops strategy and invest in more stable revenue opportunities. This is a great time for parts to shine. With the increased demand for maintenance, parts departments can offset the impact of a decline in car sales and empower their dealerships to make more money.
“The parts department has always been the red-headed stepchild of the dealership… But that’s changed. The parts department now is a big deal. It’s a big part of the business, and if you don’t have the parts department functioning at a high level, you're really missing out."
– Scott Lindwall, Fixed Ops Director of Bommarito Ford
Maximizing profitable revenue through your parts deparment
The demand for parts is only going to grow as consumers hold onto their vehicles longer, and dealerships must take proactive steps to capture this opportunity. Parts leaders need to speak up about the opportunities being missed by undervaluing and underfunding and underusing the true power of the parts department.
“When you look at the tariffs, yes, there’s going to be some price increases. But that doesn’t change the fact that parts are still needed. Cars need to be fixed, and people want OEM parts. If you're not ready to sell those parts online, you're missing a huge opportunity.”
– Tully Williams, FixedOps Director of the Niello Group
Here’s how you can set up your parts department to maximize its profitable income potential during the potential variable ops drought.
How to maximize parts revenue in an uncertain economy
Show customers why OEM parts are worth it: Customers want quality, and OEM parts deliver that every time. Whenever possible, emphasize the long-term reliability and value that genuine parts bring to their vehicles. When they trust your parts, they’ll come back for more, knowing they’re getting the best for their ride.
“OEM captive parts are a unique asset for dealership parts departments. The aftermarket can't replicate these exclusive parts. Dealerships can use this advantage by pricing and positioning their captive parts strategically, offering customers reliable, high-quality products that no third-party competitor can match”
– Anthony Blubello, BMW Parts Manager
Get (or keep) your parts and accessories listed online: Whether you’re already selling parts online or still thinking about it, now’s the time to take action. The world has already changed, and online sales are no longer optional. If you’re not online yet, you’re missing out on a huge portion of potential sales. For those already online, keep expanding your reach and maximizing bringing in sales 24/7.
“As parts prices increase, consumers will turn to dealerships for reliable, high-quality parts, which is where we come in. This puts an even greater emphasis on the importance of online parts sales.”
– Ted Ings
Focus on the Volume Game: You want to move as much product as you can and so do the manufacturers, so make sure you’re focusing on volume. Selling on platforms like Amazon, eBay, and your branded webstore helps you keep your inventory moving and money coming through the doors (not to mention unlock manufacturer incentives which help your bottom line).
"Volume wins. When margins shrink, you’ve got to drive more sales. The more parts you sell, the better it is for your factory objectives and your business overall. And that’s where online parts sales come in."
– Tully Williams
Clean up your inventory and keep it moving fast: A clean inventory is a profitable inventory. Stay on top of your stock, keep it lean, get prepayment for special orders, and focus on the parts that are in high demand. Selling on eBay helps you find a home for the parts that are collecting dust by tapping into a national or global audience of niche buyers.
Use your reputation to your advantage: Your reputation is your strongest weapon in building customer loyalty. Make sure you’re offering them the parts they need with the customer service and convenience they expect. By getting (or keeping) your inventory online, you can provide a shopping experience that will keep parts buyers coming back.
Capitalize on increased price sensitivity: Consumers are more price-sensitive than ever, which means they’re going to turn to the internet more and more to compare prices. In order to capture those shoppers, you have to make it easy for them to find your parts online. If your parts aren’t listed online, you’re handing business to your competitors.
"Companies like Pep Boys, who buy all their parts from Southeast Asia—like Vietnam and Indonesia—are facing huge tariffs on those parts. That’s going to make aftermarket parts skyrocket in price, and that puts the franchised dealer in a great position."
– Ted Ings
Train parts advisors to sell more: Make sure your parts team has a sales-focused mindset and tools and training. When they answer the phone or interact with customers, they should confidently offer additional products, recommend services, suggest related parts, and get contact info to follow up with quotes. Providing your team with easy-to-use tools for selling online can expand their reach to a national customer base, increasing sales.
Get serious about marketing: Marketing is key, but it’s all about reaching the right people. Use digital ads and dial-in your SEO strategy to target online shoppers and get your parts and accessories in front of a wider audience. By focusing on online marketing, you can grow your sales and reach customers across the country.
“If you're not selling parts online, you're missing out… You’ve got to be all in or get out.”
– Tully Williams
Lock in steady income with stronger parts sales
Who knows. Tariffs might not stick around for long—things could change before the end of the week—but it’s still a good idea to prepare for whatever comes next. Now’s the time to double down on your fixed ops revenue channels. By strengthening your parts department—especially through online sales—you can lock in steady income, reach customers across the country, and make sure your dealership is ready for whatever the future holds.
