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 ten or fifteen 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 operate that car for site to website 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 up the difference.
Additionally many dealers such as Porsche and Saab in order to adding other useful benefits such as the loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in hard work to keep on top of 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 to be able to independent repair shop prices.
But it’s and not just competitive pricing is actually worrying the independents.
The battle for skilled labor may also be won together with dealers: the dealers generally competed for skilled labor and may have become a great deal more aggressive. With fewer individuals entering automobile repair profession and opting instead for careers with regard to health and technology, overall talent pool of methods to use skilled auto technicians is shrinking.
Increasingly is certainly becoming harder for independents to rent and retain these competent employees. The automotive technician, would you rather are employed by Audi or Joe’s House?
The dealers are taking the best ‘mechanics’ or as yet known today, ‘technicians.’ A top end dealer technician may well $100,000 a year with benefits while a private shop owner would ought to gross over a $1,000,000 every year to make that as well as have to afford their own benefits and social protective measures.
Because the hands down economic realities many independent owners are currently closing their shops on and on to enhance GM, Nissan and other dealers.
This puts the independent auto repair shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, is not diagnosis created from and a part needs replacing the dealer will buy it in stock, not only verifying the verification but greatly speeding increase the repair time and increasing customer satisfaction. Big advantage Cadillac and Bmw.
But it is not just a skilled employee showdown. Techs cannot fix cars without information and you will find a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that their technical information is proprietary individuals independents claim the information should be for sale to anyone who owns or fixes that make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777