If you see fewer auto repair shops near you then you are witnessing a trend that is spreading throughout the auto repair industry. The small independent auto repair shop is getting squeezed by both the dealers and the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem may be the auto repair and service market has been shrinking in the last 10 or 15 years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer getting 100,000 mile warranty meaning that the independent will get little chance to improve that car for their early 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab happen to adding other useful benefits such to be a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in trying to keep plan the dealers since customers now expect this service.
Furthermore dealers for example Mercedes and Ford are now directly offering specials on services making their dealer prices to be able to independent repair shop prices.
But it’s not just competitive pricing that’s the worrying the independents.
The battle for skilled labor may also be won through dealers: the dealers often competed for skilled labor and may have become even more aggressive. With fewer conserve entering automobile repair profession and opting instead for careers with regard to health and technology, essential talent pool of the most skilled auto technicians is shrinking.
Increasingly it is becoming more difficult for independents you ought to hire and retain these competent employees. Regarding automotive technician, would you rather appeal to Audi or Joe’s Rummage?
The dealers are discovering the best ‘mechanics’ or as yet known today, ‘technicians.’ An excellent end dealer technician actually make $100,000 twelve months with benefits while an independent shop owner would have to gross within a $1,000,000 one year to make that and have absolutely to purchase their own benefits and social basic safety.
Because in the economic realities many independent owners have started closing their shops and going to be suitable for GM, Nissan and other dealers.
This puts the independent auto repair center at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, is not diagnosis is comprised and a portion needs replacing the dealer will have it in stock, not only verifying diagnosing but greatly speeding in the repair and also increasing service delivery. Big advantage Cadillac and Mercedes.
But it is not just a skilled employee conflict. Techs cannot fix cars without information and you’ll find a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that the technical information is proprietary while independents claim the information should accumulate to anybody that owns or fixes that make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777