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."
By Joe Marconi
According to Zip Recruiter, tech pay on average is about $41,000 per year. Is this an issue? I know many of you pay more than average, but do you think that we need to increase tech pay in order to attract more people to the auto repair industry. One other thing to consider, the shop and shop owner needs to be profitable and make the money first in order to pay anyone a decent wage.
Years ago my younger brother came to work for me. He didn’t know a thing about cars, but was willing to learn all he could. Teaching new techs is an art that most shop owners have to learn to do, but teaching your little brother can be a chore and can test your patience. I muddled thru it all and taught him what I could. I was sure at some point in time the two of us would butt heads like brothers will do, and he would take his new found skills and move up in the rank and files of the automotive technical world, but in the meantime it was his turn to learn from his older brother.
When he first started I would walk him through each step of how to diagnose a certain system in a car. A lot of times he would have questions, and I’d do my best to answer them. He learned quickly and was really sharp at picking up some of those little details that are harder to teach. You know things like how you held a certain wrench or used a certain tool, to you and me it’s no big deal. But to a novice, it’s a revelation, then you (I) tend to forget to mention those certain traits while you’re teaching. Mainly because you are trying to get to the solution as efficiently as possible, and you neglect to bring it up. Such as: “always test your test light connection before testing what you’re testing, or don’t forget to check for all your tools before you pull the car out of the shop….” Things like that.
One day we had a truck come in with dual fuel tanks on it. The gas gauge wasn’t working and needed some attention. This was a perfect opportunity for Junior to learn a few of my short cuts on these old models. It was an older Ford, in which the tank gauge ran thru the tank switchover button. It was rather easy to pull it out of the dash and connect to the gauge from the back of the switch.
Luckily it was the typical problem I’ve seen a hundred times in the past. The switch connections would melt and the tank wouldn’t switch from the front tank to the rear, and of course the gauge wouldn’t move either.
After locating the correct leads to the gauge and to the tanks I decided to show him how the gauge worked. I hooked up the one of the tanks to the crossover lead that would supply the signal from the tank to the gauge.
“Ya see this, that’s the lead to the fuel gauge in the dash, and this is one of the tank wires. I’ll connect these together and we should get a reading on the dash,” I told him.
He was watching intently, taking in all the wiring diagram information, the location of the wires, and how I was bypassing the switch. He was fascinated with the flow of the current and the way the gauge would respond. I even went as far as moving the gauge from full to empty by opening and closing it to a ground signal. While I had his attention I filled him in on the two types of gauges that were used back then (bimetallic and magnetic) and how low resistance on a bimetal type gauge would read near a full tank, while a magnetic gauge would read close to empty. Change the resistance and the gauge would/should read accordingly.
“So, if we put gas in the tank the gauge should move right? That way we could check the sending units in the tanks too,” he asked me.
“Great idea, grab a gas can and let’s add a few gallons,” I said, excited that he was so interested in the project.
He grabbed a can of gas and poured a few gallons in the tank. I was watching the gas guage carefully, but there was no movement. I knew I was on the right wires, but nothing was happening. Now what? Are there more problems?
“Crawl under there, and check to be sure the wire color is correct,” I yelled from the cab to him.
“Yep, it’s the right wire on the tank.”
“Well, we might have to pull the tank; it’s not changing the gauge readings up here.”
“Before we do that let’s add some more gas, maybe we didn’t add enough,” Junior tells me.
I thought I better go back and help hold the funnel, while he poured the gas in the tank. Unknowing to me, all this time my wife (who was the office manager) was listening in on the whole thing. She likes to keep tabs on me, and make sure I’m not going into one of my usual rants or having a fit because I had to explain something over and over again to little brother. This time she was standing at the corner of the shop just behind the truck with a camera. “CLICK”, I heard the camera shutter go off and she was back there laughing like there was no tomorrow.
“What’s so funny?” I asked her.
“You two idiots have been putting gas in the wrong tank. You’re on the front tank, and you’re putting gas in the rear tank,” my wife answers, laughing hysterically.
About then the camera “clicked” again… this time it was an action shot taken at precisely the exact moment when these two idiots had that dumb struck look on their faces and realized what they just did. The shot had both of us on our knees, one holding a funnel and the other with the half empty gas can, and both of us staring right into the camera lens. Couldn’t have set it up any better if you tried.
The picture clearly showed the side of the truck with both fuel tank doors visible and there was no doubt which tank we were putting in the extra gas. I guess it was one of those things I should have mentioned when we were checking the tank senders… make sure we are both on the same tank.
For years that picture hung over her desk, and anytime I thought I was so smart she would point at the photo. Usually with that typical smirk, usually shaking her finger at me and of course the laugh… she had to laugh, but it wasn’t all that funny until she had me laughing about it too. Ok, Ok, I’m not perfect... and now my little brother knows it too.
These days he’s a top notch tech at a dealership, and I have to call him on occasions for some help on how to solve things once in a while. Oh the photo… uhmmm… what photo?? Somehow it’s missing… haven’t seen the darn thing in years. But I guess I really don’t need to see the photo … the wife has a pretty good memory... she reminds me just how smart I think I am every chance she gets.
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Just got an email about Blue Yonder CC processing that sounds too good to be true. They say they only charge is $65 a month no start up fees, no transaction fees, no equipment fees, no hidden fees and no cancellation fees. It says it is compliant in all 50 states. Very tempting to try but I have been burned in the past. They are focusing on Auto Shop owners. Wondering what everyone else thinks about this. We would save over 10K a year.
Here is the website from my email: http://autorepairblueyonder.com/
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By Joe Marconi
We all have those customers that focus on price alone. And we all struggle with our persistent attempts at converting them into believers. Believers of the concept that, while we cannot totally dismiss price, it’s the value of the product or service the customer needs to consider when making a purchase. What’s funny about these customers is that each visit tends to start with a complaint about price, even before the car is looked at. We recently had a situation that started off on the wrong foot, with price being the issue; but ended up a win for us, and for the customer.
Charlie Challenge (not his real name) arrived at our shop and asked for an estimate on replacing the timing chain for his Nissan Altima. My service advisor responded with, “Mr. Challenge, that’s a big job. How do you know your car needs a timing chain?” Charlie replied back, “Another shop checked it out and they told me it does. Can you please give me a price?” My advisor continued with, “Well, before we do anything, we need to perform a few tests to make sure you really do need a timing chain.” Charlie emphatically replied back, “And how much is that going to cost? All you guys want is my money! I asked for one thing; a price on a timing chain and you just want to make more money on something I already know I need!”
It took a lot of composure, but my advisor calmly stated all the reasons why testing is the best way to go, emphasizing the fact that if we replace the chain and it’s not the problem, the money spent would be wasted. Charlie shook his head, threw the keys on the counter and authorized the testing.
I’ve known Charlie for a long time. He’s not a bad guy. But price is always the topic of discussion. He has told me in the past that I should take a look at what other shops charge, and be more competitive with my prices. I have told Charlie that I don’t, and never will, price my services by what other shops are charging. I have also told him to look beyond price and look at the value you get. Besides, all the quality shops that I know are pretty much the same when it comes to pricing.
During the write-up process, Charlie revealed to my service advisor that the check engine light had been on, and that’s why he took his car to the other shop. The other shop replaced a valve timing solenoid, but that didn’t fix the problem. He was then told that the next step was to replace the chain.
Later that morning, the car was dispatched to a technician. A multipoint inspection was performed, along with all the tests related to the check engine light; which was a timing error. After the MPI and the tests were completed, we found a few things wrong with Charlie’s car. His Altima needed an oil change service, a battery, rear brakes, an air filter, the cabin filter had a mouse nest in it and the car needed an intake timing control sensor, not a timing chain. This engine has two intake control solenoids. One was supposedly replaced by the other shop. So, did this car have two bad sensors? Or was the wrong sensor replaced by mistake?
When my service advisor called Charlie to tell him the good news, he was silent for a moment. He was shocked that the car didn’t need a timing chain. He authorized the solenoid replacement, the oil change and replacing the mouse-infested cabin filter. He declined the other work.
I purposely did the follow-up call with Charlie a few days later. He was happy to hear from me and told me that car hadn’t run this good in years. I had to needle him a bit, “So Charlie, are we really expensive? We saved you a ton of money by doing the tests first and not just replacing the chain.” He said, “Ok Joe, I get it, I really do this time.”
During our conversation, Charlie did confess that he didn’t go to another shop, but actually went to that all-knowing, all-powerful place on the internet known as Google. It was Charlie that replaced the solenoid, not realizing there were two, and not knowing how to properly test the system either.
When I asked Charlie why he didn’t let us replace the battery, air filter and the rear brakes, he replied, “Joe, come on, I can do that work myself, and besides, you guys are expensive.”
Sometimes you win the battle, but it’s hard to win the war with some customers.
This story was originally published by Joe Marconi in Ratchet+Wrench on October 1st, 2019
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By Joe Marconi
If there is one thing that doctors and dentists do very well, it's that they book the next appointment for their clientele. I have heard every excuse possible why many auto repair shops don’t do this. But the fact remains that everyone in your shop today will need future service and repairs. And the question is, “Are they coming back to you.”
Another reason for booking the next appointment is that there are times when not all the recommended services were done today. Some were postponed due to budget and prioritizing what’s most important. So, before that customer leaves, make sure the customer commits to a future date to have the work done. After all, why did you recommend it in the first place?
Car delivery is the time to review all the work done today, continue to build the relationship and to inform your customers of upcoming work and services. But don’t leave it to chance that the customer will remember. Be proactive, discuss future dates and put those dates in your calendar.
Lastly, call customers a few days before the appointment as a reminder. If the appointment has to be moved, then move it.