If you see fewer auto repair shops in your area 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 along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
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 at least one 100,000 mile warranty meaning that the independent will get little chance to work with that car for one 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are in order to their service departments to make along the difference.
Additionally many dealers such as Porsche and Saab happen to adding other value added benefits such as a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in a shot to keep up with 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 for you to independent repair shop prices.
But it’s not just competitive pricing that’s the worrying the independents.
The battle for skilled labor is also being won using the dealers: the dealers generally competed for skilled labor and will have become even more aggressive. With fewer young people entering business repair profession and opting instead for careers regarding example health and technology, the total talent pool of methods to use skilled auto technicians is shrinking.
Increasingly it is becoming more difficult for independents to utilize and retain these competent employees. A great automotive technician, would you rather appeal to Audi or Joe’s Garage?
The dealers are collecting the best ‘mechanics’ or as they may be known today, ‘technicians.’ Top-notch end dealer technician actually make $100,000 twelve months with benefits while a self-employed shop owner would require gross over a $1,000,000 1 yr to make that as well as have to obtain their own benefits and social safe practices.
Because of these economic realities many independent owners are currently closing their shops on and on to be employed by 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, if a diagnosis is intended and a fraction needs replacing the dealer will buy it in stock, not only verifying diagnosing but greatly speeding within the repair period and increasing customer care. Big advantage Cadillac and Rolls royce.
But it’s not just a skilled employee struggle. Techs cannot fix cars without information and you will find a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim their technical information is proprietary everybody is making independents claim the information should be for sale to anybody that owns or fixes that make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777