Wanting some opinions. I have been having a problem the last couple years with customers approving repairs and when we get the job done and call them for them to come pick up and pay they either don’t have the money all of a sudden or say they will come get it and don’t. It may sit there for months, I had one sit for two years that owed 3000 dollars. Finally got my money! Just wondering what some of you guys do? Thought of charging storage after so many days?
USA Today article (Friday September 27, 2019 by Nathan Borney - USA Today) shows that “the average age of cars and light trucks on U.S. roads reached an all time high of 11.8 years in 2018.”
The article goes on to claim... “By 2023, there will be about 84 million vehicles on the road that are at least 16 years old, reflecting a 240% increase from 35 million in 2002, according to IHS.”
Are you getting your share?
There’s only 90 days left in 2019 and the market is changing. Sorry, it HAS changed. Are you ready? Do you have your plans laid out for marketing your shop in 2020?
Auto Service Marketing - Fix Your Car Count FAST!
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The average age of light vehicles in operation in the U.S. has risen again as consumers continue to hold onto cars and light trucks longer.
Driven by technology and quality gains, the average age of light vehicles on U.S. roads is 11.8 years, based on a snapshot of vehicles in operation Jan. 1, an analysis by IHS Markit found. That's up from a light-vehicle population that was, on average,11.7 years old in 2018.
The number of registered light vehicles in operation in the U.S. hit a record of more than 278 million this year, an increase of more than 5.9 million, or 2.2 percent.
IHS Markit began tracking the age of vehicles in 2002, when the average age was 9.6 years.
"The average age of a vehicle has continued to grow ever since cars started coming out from Henry Ford's production line, if you will," said Mark Seng, director of the global automotive aftermarket practice at IHS Markit. "People are hanging onto them longer because they're lasting longer."
From 2002 to 2007, the average age of light vehicles in the U.S. increased 3.5 percent, he said, but from 2008 to 2013, the average age rose12.2 percent.
"We're kind of back to that same pace that we saw from 2002 to 2007," Seng said. "The average age of light vehicles in the U.S. accelerated so much because we were coming out of the Great Recession back in 2008 to 2009 and new light-vehicle sales fell like 40 percent over a two-year period. Even during the recovery years there were fewer vehicles being sold, so that just accelerated the average age of the fleets in the U.S."
For the first time, the analysis included a review of various regions around the country. The oldest light vehicles are in the West, at 12.4 years, an increase of 1.5 percent from a year earlier. The Northeast had the youngest light vehicles at 10.9 years, which increased 1.1 percent from a year earlier. Weather and road conditions, driving habits and household finances and affluence can have a major impact on the average age of vehicles in a state and region, IHS said.
IHS Markit found that the number of older cars and light trucks is growing fast, with vehicles 16 years and older expected to grow 22 percent to 74 million from 2018 to 2023.
In contrast, there were less than 35 million vehicles 16 years or older on the road in 2002, according to the analysis.
Seng said the growing number of older vehicles on the road provides more repair opportunities for dealers and aftermarket parts providers that focus on automotive service repair beyond warranty coverage.
"There's many more older vehicles on the road than there was in 2002, which means there's going to be all different kinds of repairs -- oil changes, brake jobs and new wiper blades -- that's going to be done to that vehicle cycle," he said. "That's more revenue opportunities for aftermarket repair people."
Zombie Cars “Brains, Brains, we need Brains!” Zombie cars? What’s a zombie car? Way back, when we used points and condensers and later the basic electronic ignition systems, cars didn’t need brains (ECM – Electronic Control Module), but that all changed in the mid 70’s on some imports and pretty much on everything else by the time the 80’s came around. Some of these brains were only cursory, and didn’t actually control the car, but merely watched for emission issues, while others played a major role in the actual ignition spark or fuel delivery systems. Most of the engines in those early years, still used the same basic type of distributor setups (with a few exceptions) as their earlier counterparts that used the old tried and true points and condenser type of ignition systems. During those cross-over years it was rather easy to slap a different distributor in it, or change the existing points distributor over to electronic ignition (which worked quite well by the way). These days...it’s not that easy. These computer systems have become so entangled into the engine functions and nearly every other system that it’s impossible to bypass the fuel or ignition systems as we did years ago. However, there are still a lot of people out there that have hung onto some of the cars from that era. Most likely they've been kept parked alongside the garage as a future project or hung onto for some sentimental reason. Some (very few) are in great shape, others… well, they look like zombies already. What makes them zombies? The brain… the brain… they need brains! Just this past week I had several of these faded paint monstrosities lined up in the parking lot. (They never come alone… always in a pack.) For starters an old dilapidated 1986 Dodge pickup with a slant six. This old rusted, tilting to one side relic had been at another shop for a tune-up, but as the story was told to me by the owner, the other shop tried to start it when a fuel line ruptured and caught the old truck on fire. Luckily, they managed to get it out, but the damage was already done. The main harness from the firewall to the distributor, coil, charging system, blower motor, oil sending unit, temp. sender, and the starter wiring were completely melted into an unrecognizable mass of plastic and copper. It was my job to bring this dilapidated hulk back to life. However, the original spark control computer had melted as well, and was unusable. Worse yet, the brain was discontinued eons ago with no replacement parts anywhere to be found. This zombie needs a brain, and there doesn’t seem to be an easy way to get one. At this point the only solution was to do away with the electronic brain and try to refit the old slant six with a much simpler ignition system from a decade earlier if at all possible. A lobotomy if you will. (Dr. Frankenstein would be envious.) Then there was this 2002 Mustang that moaned and groaned while dragging one foot into the shop. It needed a new BCM (Body Control Module). Call the dealer, call the parts warehouse, call everybody! Anybody! Is there a brain for this car? Nope, discontinued. Seems this particular BCM was a rather rare brain out there in zombie land, and at the time, nobody was setup to rebuild them. It seemed this car was destined to wander the city streets with the rest of the zombie mobiles. At the same time this was going on, in comes a 1982 Ford Bronco with the original Variable Venture carburetor still on it. Ok, not a brain, but just as bad. It qualifies as a zombie for sure. Trying to find a suitable replacement these days is a challenge. Ten or twenty years ago this would have been no problem to find a carb. kit (if you dared) or the Holley conversion kit for it, but not today. This trend of bringing back the dead looks like it’s only going to turn into the next zombie apocalypses. As these electronic systems get more and more complex the likely hood of your family truckster turning into a zombie is just a matter of time as each new model comes out. In some ways, I believe the manufacturers have thought this out long before there was a potential of these cars becoming zombies. In my youth it was nothing for me and a few friends to grab an old car out of a junk yard and raise it from the dead. Ya just had to throw a few shots of gas down the carburetor, add a few wires and a fresh battery and fire it up. The rust would fly, the engine would clatter, the smoke would billow out from under the hood, as the exhaust roared out of every crack in the manifold. Those days are long gone now. They may have engineered a longer lasting engine, better paint, and for the part, the interior can hold up to the ravages of time, however, the electronics, are their weakness. Although, these zombie mobiles seem to be coming out of hiding more often than ever before. Reviving some of these early electronic zombies may happen, but on the other hand, it may be a futile effort. The truth of the matter is… these resurrections are not as easy to do as it was so many years ago. There are countless problems that have to be overcome to bring some of these rusted heaps back among the living, especially if you’re in an area that requires emission testing. Just trying to bypass some of those early electronic brains when a replacement part can’t be found can be a real challenge. The good news is that there are a lot of guys out there tearing these brains apart and rebuilding them. But even then, there are some zombie cars that will never make it and eventually die from the lack of a brain, while others wander aimlessly from shop to shop still searching for their elusive electronic gray matter. Even after you manage to find a brain for these living dead vehicles it’s likely something else is going to go wrong. After all, being cast aside for so long, all the hoses, belts, and gaskets have dried up. Something will more likely fall off just like you would expect from any other zombie wandering around. And, you know, just as soon as the latest zombie joins the living something will undoubtedly come tumbling to the shop floor. Whether it’s coolant, oil, a belt, or perhaps no#2 connecting rod, something is not going to stay in place. Just like in every zombie movie I’ve ever watched,.one of them will always have an arm or leg falling off. It sure seems that these zombie cars follow right along with that same affliction. It’s safe to say, these relics of the early electronic era of the automotive world are in some respects the car equivalent of a zombie: half dead, half alive…and in search of a brain they may never find. So don’t be surprised if you’re at the next traffic light when an old faded-rusty-dented car with a shattered windshield, screeching brakes, with plumes of dense low hanging smoke creeping along with it, don't be alarmed, it’s just another car beginning its transformation into a "ZOMBIE CAR".
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Wondering how you all handle repair work to your own vehicles. How do you pay, how do you handle parts costs, write an RO or not, how does it affect gross sales.
I currently write an RO, pay the guys time just like any other job, but cost the parts to myself. The RO is for zero sales but has tech time charged to it. Wondering how others do it. I also have too many vehicles...