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 along with 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 work with that car for site to website 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are seeking to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab have been adding other useful benefits such as a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in trying to keep lets start work on the dealers since customers now expect this service.
Furthermore dealers regarding example Mercedes and Ford are now directly offering specials on services making their dealer prices comparable to independent repair shop prices.
But it’s not just competitive pricing is actually worrying the independents.
The battle for skilled labor is also being won using the dealers: the dealers have always competed for skilled labor and already have become significantly aggressive. With fewer right now 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 it becoming more difficult for independents to hire and retain these competent employees. Regarding automotive technician, would you rather improve 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 may well $100,000 yearly with benefits while a self-employed shop owner would must gross during a $1,000,000 1 yr to make that as well as have to pay for their own benefits and social basic safety.
Because the hands down economic realities many independent owners are now closing their shops and going 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 health issues.
Additionally, is not diagnosis is made and a fraction needs replacing the dealer will are in stock, not only verifying diagnosing but greatly speeding within the repair and also increasing customer care. Big advantage Cadillac and Bmw.
But it’s not only a skilled employee showdown. 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 equipment.
The manufacturers claim that the technical results are proprietary while independents claim the information should accumulate to anyone who owns or fixes create of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777