New Car Sales Are Up! Prepare or Beware?

[Joe Marconi]

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[Gonzo]

I see what your saying Joe. And, it's a very likely scenario. What can we do to combat the "total care" or "free maintenance" issues? I wish I knew.... Hopefully, things like customer loyalty still has some clout. I would think most of my customers that I have been serving for years that would go out and buy a brand new car would only go to the dealer until it wasn't free for them. That might take me out of the loop for a while, but I think it would all turn back to the independent shops sooner or later.

 

Price still drives sales, and repairs. If it wasn't free... they would be at my door looking to save a buck.

[Jeff]

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[Joe Marconi]

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[LynxStarAuto]

As long as Mercedes, BMW, and VAG continue to make cars, I will continue to have work. None of these dealer service plans are truly "free". The cost is built into the vehicle price. The coverage is also very lean, and laden with asterisks, and side notes. About the only thing that is covered is oil changes and wiper blades, and inspections. The wear and tear stuff must be paid out of pocket by the consumer. That is where we still hold the edge, when you consider dealer labor times, and parts costs. They just cannot compete in that department.

 

I agree that we must rethink our marketing. We must show customers that we are just as equipped and prepared as the dealership at half the cost in most cases. We may need to invest in new equipment, maybe do some "spring cleaning" around the shop and clean up the appearance and layout. Maybe the next time you offer to buy that clean vehicle off of your customer that requires a new transmission, instead of reselling it, maybe you can make it a loaner car you give out to customers for repairs that require significant down time. Maybe you can invest in new equipment which will boost your efficiency and productivity. There are many ways to go about it, but the indy shop is not going anywhere. There will always be used cars, and used car customers on the road, and those cars will need service, and that is where we come in.