If you see fewer auto repair shops in your community 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 also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem could 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 the first 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 are adding other useful benefits such being a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in a feat to keep with the dealers since customers now expect this service.
Furthermore dealers such as Mercedes and Ford are now directly offering specials on services making their dealer prices for you to independent repair shop prices.
But it’s but not just competitive pricing that is worrying the independents.
The battle for skilled labor is also being won through dealers: the dealers have been competed for skilled labor and already have got become even more aggressive. With fewer young people entering significantly repair profession and opting instead for careers like health and technology, overall talent pool of the superior skilled auto technicians is shrinking.
Increasingly it is becoming tougher for independents to rent and retain these highly skilled employees. Regarding automotive technician, would you rather are employed by Audi or Joe’s House?
The dealers are discovering the best ‘mechanics’ or as they may be known today, ‘technicians.’ An excellent end dealer technician actually make $100,000 one year with benefits while a self-employed shop owner would must gross over a $1,000,000 twelve months to make that and have to obtain their own benefits and social protective measures.
Because of this economic realities many independent owners have started closing their shops and going to enhance GM, Nissan and other dealers.
This puts the independent auto repair center at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, is not diagnosis is made and a fraction needs replacing the dealer will are in stock, not only verifying the verification but greatly speeding up the repair as well as increasing customer support. Big advantage Cadillac and Bmw.
But it is not just a skilled employee struggle. Techs cannot fix cars without information and you’ll find a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim their technical facts are proprietary individuals independents claim the information should be for sale to anyone that owns or fixes create of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777