New Car Sales are up. Good or Bad News for Repair Shops?

[Joe Marconi]

The recent plunge in fuel prices combined with a recovering economy has created an increase in new car sales. In the past I viewed this a positive sign, since these cars will eventually trickle down to the aftermarket shops. But with the intense strategy to keep new car customers in their service bays, I feel that new car dealers will actively go after the service and repair market. New car dealers know that future new car sales are made by keeping those customers as service and repair customers.

 

I am overreacting? Your thoughts?

[Tires Too]

I think this year will be a good one for the aftermarket. New car dealers have definitely been doing a better job of keeping the service business over the last 5 to 8 years with "free" maintenance coverage, but new car sales have been rebounding from a low of 10.5 million vehicles in 2009 to about 16.5 million vehicles in 2014. As many of the "free" maintenance coverages expire, I don't see the dealerships having enough bays to service these older vehicles. We saw a significant hole in the age of vehicles coming into our shop as a result (I believe) of the Cash for Clunkers program. We are starting to see an increase in the 2009 through 2012 model year vehicles coming into our shop which should continue for the next 2 - 3 years.

[Richard Ehler]

I think Joe is right to be concerned. My goal is to get "everybody" within 3 miles of store to come in for something. May be tire repair, emissions test, oil change, bulb, etc. Then do my best to persuade them that if this visit was easier than going to new car dealer, why no make all visits easier by bring "all" work here.

[mspecperformance]

It can be good and bad. Not sure if there are data out there to show the trend in used car sales are. I am going to assume they are up as well which is good for the indys.

[Jeff]

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[alfredauto]

According to the latest auction report new car sales in western and central NY are way down, I wouldnt worry too much.