Any dealers CONSIDERING the vehicle WRAP business?

[Mustafa Mustafa]

Having built a tool called "Delivery Tracker" where we worked with a dealer to track everything that happens between the time of purchase and the time of delivery, I would raise a few points if you intend to sell on new/used cars at point of sale:

- The partner you choose should understand delivery turnaround times can be short and be flexible about that
- The wrap should be shown during F&I process, ideally as a monthly payment
- Mobile service with wrapping can be tricky - every spec of dirt or moisture that gets under the vinyl is a problem now and a nightmare later

I would personally never wrap my car after the horrors I've seen when they get unwrapped, but I know customers love that they can have any color, design or color-shifting options even.

When I worked at a dealership collision center we'd have customers who had PPF and window tint installed prior to their accident. We'd have our sublet vendors come take a space up in one of our prep areas and get to work. Quality always was great and we had little issues.

We also got a 25%-30% discount and billed the insurance company the full amount.

When I worked as a service adviser we'd have customers that wanted windshield repair, wheel repair and window tint installed on their cars. We'd just add the work to their Repair Order and have one our guys come in to do the work. Easy upsell and source of extra profit.

However for point of sale and vehicle colored wraps, we have had no experience doing that before.

Delivery tracker sounds like a used car reconditioning tool, correct me if I'm wrong. I was interested in building one, but there are so many great options on the market right now.

 

[craigh]

Delivery tracker sounds like a used car reconditioning tool, correct me if I'm wrong. I was interested in building one, but there are so many great options on the market right now.

There are many recon tools in the market, so what this dealer was looking for specifically was tracking post-sale to delivery.
The difference is things like prep time (ie: you sell window tint, the system knows it has to be sent away and it takes X hours, but Leather Protection takes 24 hours, etc). The whole idea of the tool was trying to get deliveries back on schedule because delivery dates were constantly moving due to shop overlap, vendor availability, etc.

 

[kylewilliam]

I keep catching articles promoting and forecasting the vehicle wrap business.

I know MOST dealers are outsourcing this to the local custom shop but I'm wondering if any dealers are offering this service in-house?

From the looks of the recent market trends and forecasting, seems as if it could be a potential WIN opportunity for dealers to get in on. Having the ability to upsell custom colors, designs and tones could be another avenue dealers are looking for.

U.S. Automotive Wrap Films Market Trends and Forecasts 2021 - 2028: Growing Popularity of Automotive Wraps Films for Vehicle Customization - Link to market analysis overview​

1. The U.S. automotive wrap films market size was estimated at USD 1.18 billion in 2020 and is expected to reach USD 1.29 billion in 2021.
   
   
2. The U.S. automotive wrap films market is expected to grow at a compound annual growth rate of 18.8% from 2021 to 2028 to reach USD 4.32 billion by 2028.
   
   
3. Light-duty vehicles dominated the U.S. automotive wrap films market with a share of 53.8% in 2020. This high share is attributable to the rising demand for wrap films as a cost-effective solution compared to vehicle paint, especially for high-end vehicles such as Audi, Mercedes, Porsche, Volkswagen, and BMW.
   
   
4. Key factors driving the U.S. automotive wrap films market growth include the rising trend of advertising on automobiles coupled with the growing popularity of automotive wrap films for vehicle customization from car wrap shop in Phoenix, AZ.

Much of the forecasting is based on Advertising Wraps but I see more potential in the FULL Vehicle Wraps.

...an automotive wrap film is a cost-effective solution, which maintains the original paint job and provides a high resale value for the vehicles. The minimum service life for good quality automotive wrap ranges from 5 to 6 years. Automotive wrap films offer the flexibility to get the vehicle fully wrapped or semi-wrapped depending upon the requirement. These wraps can be a bit expensive than paint in the case of complex designs, however, with high quality, the overall return on investment in the case of automotive wrap films is high as compared to vehicle paint. Automotive wraps are a cost-effective option when the paint cost is expected to be very high, for example, in the case of racing cars, as these cars often require quick color and design changes depending upon their sponsors, company, and branding. The low cost of wraps as compared to vehicle paints makes it suitable for these applications, which, in turn, is anticipated to increase the demand over the forecast period.

Some dealers offer in-house vehicle wrap services, but most still outsource to local shops. Given the market’s strong growth and demand for customization, offering wraps in-house could be a good opportunity for dealers to increase profits and upsell custom options.