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 also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem is 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 most important 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 along the difference.
Additionally many dealers such as Porsche and Saab already been adding other value added benefits such as the loaner car while repairs are being made. Independents are 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 for you to independent repair shop prices.
But it’s but not just competitive pricing is actually not worrying the independents.
The battle for skilled labor may also be won by the dealers: the dealers have been competed for skilled labor and already have become a great deal more aggressive. With fewer folks entering the auto repair profession and opting instead for careers such as health and technology, overall talent pool of the top skilled auto technicians is shrinking.
Increasingly it is becoming tougher for independents to utilize and retain these highly skilled employees. Being an automotive technician, would you rather work for Audi or Joe’s Rummage?
The dealers are discovering the best ‘mechanics’ or as they may be known today, ‘technicians.’ An excellent end dealer technician may well $100,000 one year with benefits while a self-employed shop owner would require gross over a $1,000,000 1 yr to make that and have absolutely to afford their own benefits and social protective measures.
Because the hands down economic realities many independent owners are usually closing their shops all night to be suitable for GM, Nissan and other dealers.
This puts the independent auto repair shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, in the event the diagnosis created from and a part of needs replacing the dealer will achieve it in stock, not only verifying the verification but greatly speeding up the repair and also increasing client satisfaction. Big advantage Cadillac and Bmw.
But it isn’t just a skilled employee struggle. Techs cannot fix cars without information and there has been a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that their technical details are proprietary everybody is making independents claim the information should be around to anybody that owns or fixes help to make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777