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?
I am running a tire shop, but we also do some auto repairs. I hope to eventually do a lot of repairs, but right now we're only doing a few here and there.
My question is this- how do I get a scanner for my mechanic without spending thousands and thousands of dollars.
Our last mechanic had a $4000 scanner, and now we had to fire him for stealing money, so I am about to hire a new guy. I'm wondering how I can get this done without spending a ton of money. We are cash flow NEGATIVE right now, so I gotta get it done cheap.
I've seen stuff on the internet for $100, are these any good? What would you recommend?
thanks guys for the advice.
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
At the end of each year, it's typical of tool reps and salespeople to give you tax advise. Often they will tell you that buying tools and equipment can be used as a way to lower income taxes. While this may be true, no one has a better handle on your financial situation that a good tax accountant. Listen to the expert, not the tool truck rep. Spending money to save on taxes also reduces your cash flow. I am not an accountant, but sometimes its better to pay a little extra in taxes and maintain a cash reserve.
I think we all know that diagnostics is the most costly service we provide in the automotive repair business today. In today's automotive repair environment, you need to be selling diagnostics, and getting paid for it. I'm looking for feedback on when things don't go exactly as planned.
Let's say a car comes in and you sell some diagnostics, by the hour, or from a menu. After you complete that work, and you still don't have an answer, do you go back to the customer and sell some more? Do you continue at your expense? If you do go back to the customer, and you have nothing conclusive after that, then what? Do you keep going back and selling more diagnostic work until you solve the problem? If you continue to go back and sell more, how many times can you do that? We've all had that car that we've worked on for weeks to find some strange problem. I doubt many customers are willing to pay for the 40 hours you spent on the car.
Now lets say after 5 hours of work that the customer agreed to, you are no closer to finding the issue than when the car came in. Do you charge them for the 5 hours and send them down the road even though you have not provided them with a diagnoses? Do you start spending your time trying to solve the issue because you have a hard time charging for 5 hours and are unable to provide any answers?
I'm asking these questions as I am rethinking my business strategy on diagnostics a little. Our shop is known for its abilities to diagnose problems. We have other shops bringing cars to us on a regular basis because of these abilities. I actually get several calls and emails weekly from across the county for help diagnosing problems. There are times, a lot of times, when I think this is more of a curse, than a blessing. I know we are in the business of fixing cars, and we need to be able to find problems if customers are going to keep coming back. But after my lead tech and I spent a considerable amount of time over the last 15 days diagnosing the strangest intermittent no start issue on an Audi, and watching his frustration grow everyday, not because of the difficulty of the issue as we both love the challenge, but because it held him back from addressing the other work that was coming in the shop.
So, as rewarding as it was to solve that mystery, I can't help but look back at what it cost me financially, and the frustration to the technician, and realize we have to come up with a way to try to avoid going down those rabbit holes. Right now my idea is to give it 1 hour. If after an hour, we are not relatively certain that we will find the issue, with another hour or two, then let the car go. Let the customer know that it's not that we can't fix the car, but that we cannot fix it efficiently. If I lose that customer, it would probably still be cheaper that working on his car for 2 weeks.
Love to hear your thoughts.