Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- 37% of respondents had maintenance work performed
- Dealership closings result in less service bays nationwide
- Demand for service could rise as consumers hold onto cars longer
- Recalls present repair industry with challenges, opportunity
- Dealership service and parts sales decline nearly 10% since 2007
- AutoZone leading franchise in market share, caters to DIYers
- Number of independent auto shops steadily declining, collision sales rise
- Right to Repair Act set to even field between dealerships, independents
- Independent auto shop repairs cost significantly less than dealerships
- Yet independent shops may be threatened by Walmart’s dominance
- Relationship and service quality drive consumer choice
- Shops using online outlets to sell parts
- Hispanic respondents most likely to have mixture of work done
- Black respondents more likely to compare quotes
Insights and Opportunities
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- Market preventive maintenance as a money-saving tool
- Quick lube and oil can buffer poor sales
Inspire Insights
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- Trend: Simplicity and Convenience
Market Size
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- Key points
- Consumers spent an average $86.6 billion on auto repair from 2005-08
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- Figure 1: Average annual expenditures by consumer units for automotive repair and maintenance, 2001-04 and 2005-08
Market Drivers
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- Dealership closings cause number of service bays to decrease…
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- Figure 2: Number of U.S. new car dealerships, 2000-10
- …as demand for service is rising with consumers holding onto cars longer
- With new car sales down, dealerships push more service
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- Figure 3: U.S. sales at new car dealerships, by segment, 2005 and 2009
- Decline in highway miles traveled appears to be slowing
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- Figure 4: Consumer vehicle miles traveled, all U.S. roads and streets, January-May 2001-10
- Right to Repair Act set to even field between dealerships, independents
- Recalls present repair industry with challenges, opportunity
Where Consumers Get Vehicles Serviced or Repaired
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- Key points
- Respondents visit independents, dealerships equally
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- Figure 5: Type of service location visited, by gender, June 2010
- Older respondents build loyalty, choose dealerships
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- Figure 6: Type of service location visited, by age, June 2010
- More affluent households choose dealerships
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- Figure 7: Type of service location visited, by household income, June 2010
Segment Performance—Automotive Dealerships
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- Key points
- Dealership service and parts sales decline nearly 10% since 2007
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- Figure 8: Automotive dealers’ total service and parts sales, 2004-09
- Half of service and labor sales is mechanical
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- Figure 9: Automotive dealers’ service and labor sales, by category, 2008 and 2009
- Wholesale parts sales fall nearly 20%
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- Figure 10: Automotive dealers’ parts sales, by category, 2008 and 2009
- Number of dealerships offering collision repair down 15.6% since 2007
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- Figure 11: Automotive dealers’ total collision repair sales, 2005-09
- Dealerships increase push for service business
Segment Performance—Franchise Auto Shops
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- Key points
- AutoZone leading franchise in market share
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- Figure 12: Top 20 U.S. aftermarket chain outlets, companies by store count, 2009
- AutoZone caters to DIY consumers
- AutoZone focuses on improving customer experience
- O’Reilly grows via acquisition
- Units of tire company-owned stores are in decline
Segment Performance—Independent Auto Shops
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- Key points
- Number of independent auto shops steadily declining, collision sales rise
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- Figure 13: Number of independent auto shops, 2006-09
- Collision sales increase
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- Figure 14: Independent auto shops’ total collision repair sales, 2006-09
- Independent auto shop repairs cost significantly less than dealerships
- Warranty trends provide opportunity, challenge
- New technology hurts independents, who fight back through Congress
Segment Performance—Big-box Retailers
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- Key points
- Walmart Tire & Lube Express offers service and repair at 2,500 locations
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- Figure 15: Walmart total worldwide sales, 2006-10
- Sears Auto Center partners with dealerships
- Midas Auto Service pushes preventive maintenance
Brand Qualities
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- Honest-1 Auto Care goes green
- Olathe Ford manages Quick Lane separate from main service
- Zimbrick Buick/GMC West opens free Pit Stop Lane
Innovation and Innovators
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- Online search and sales
- ACDelco, eBay Motors sell scheduled parts and maintenance online
- Repairpal.com provides local service prices
- Checkanumber.com takes advantage of dealership closings
- Volvo dealership’s mobile technician boosts PR while serving as ad
- CollisionLink system helps dealers sell OE parts
Marketing Strategies
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- Digital media
- AutoZone launches iPhone and Android app
- TeleText connects shops and consumers via text messaging
- Sears hopes to develop viral community with Exploring My America campaign
- Broadcast media
- AutoZone promotes itself as partner to DIYers
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- Figure 16: AutoZone ad, 2010
- Ford says with today’s technology as “complex as spaceship,” Ford technicians help
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- Figure 17: Ford Lincoln Mercury service ad, 2010
- NAPA utilizes texting while stressing preventive maintenance
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- Figure 18: NAPA ad, 2010
- Pep Boys ad dispels notion that car repair is a man’s world
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- Figure 19: Pep Boys ad, 2010
Nature of Work Performed on Vehicles
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- Key points
- Maintenance, preventive mixture most likely type of work performed
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- Figure 20: Nature of work performed on vehicle, by gender, June 2010
- Young respondents least likely to perform preventive maintenance
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- Figure 21: Nature of work performed on vehicle, by age, June 2010
- Middle-income respondents opting for preventive maintenance
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- Figure 22: Nature of work performed on vehicle, by household income, June 2010
Age of Vehicle Consumers Get Serviced/Repaired
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- Key points
- Model years 2005-09 most serviced
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- Figure 23: Year of vehicle needing service/repair, by gender, June 2010
- Respondents aged 25-44 have newer cars serviced
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- Figure 24: Year of vehicle needing service/repair, by age, June 2010
- Greater respondent household income means newer cars serviced
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- Figure 25: Year of vehicle needing service/repair, by household income, June 2010
What Influences Consumer Repair/Service Choice
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- Key points
- Relationship and service quality drive consumer choice
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- Figure 26: Influences on repair/service choice, by gender, June 2010
- History and quality most important factors for over-55s
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- Figure 27: Influences on repair/service choice, by age, June 2010
- Households with income $75K-99.9K value relationships, less on service
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- Figure 28: Influences on repair/service choice, by household income, June 2010
Vehicle Components Consumers Get Serviced/Repaired
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- Key points
- Filters most commonly repaired component
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- Figure 29: Components needing repair, by gender, June 2010
- Respondents aged 25-44 have multiple components serviced
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- Figure 30: Components needing repair, by age, June 2010
- Least affluent household respondents less likely to replace filters
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- Figure 31: Components needing repair, by household income, June 2010
Consumer Attitudes Towards Vehicle Service/Repair
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- Key points
- More than a third of respondents turned off by cross-sell
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- Figure 32: Consumer attitudes towards vehicle service/repair, by gender, June 2010
- Young respondents are shopping around, potentially online
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- Figure 33: Consumer attitudes towards vehicle service/repair, by age, June 2010
- Less affluent respondents less turned off by cross-selling
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- Figure 34: Consumer attitudes towards vehicle service/repair, by household income, June 2010
Reasons Against Vehicle Service/Repair
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- Key points
- Nearly a third of respondents feel they were overcharged
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- Figure 35: Consumer attitudes against vehicle service/repair, by gender, June 2010
- 25-44 year old respondents more likely to feel work expensive, inadequate
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- Figure 36: Consumer attitudes against vehicle service/repair, by age, June 2010
- Less affluent households less likely to feel overcharged
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- Figure 37: Consumer attitudes against vehicle service/repair, by household income, June 2010
Race and Hispanic Origin
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- Key points
- Hispanic respondents most likely to have mixture of work done
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- Figure 38: Nature of work performed on vehicle, by race/Hispanic origin, June 2010
- Asian and Hispanic respondents repairing new vehicles
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- Figure 39: Year of vehicle needing service/repair, by race/Hispanic origin, June 2010
- Hispanic respondents more likely to stress warranty in choosing repair shops
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- Figure 40: Influences on repair/service choice, by race/Hispanic origin, June 2010
- Asian respondents more likely to have multiple components serviced
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- Figure 41: Components needing repair, by race/Hispanic origin, June 2010
- Black respondents more likely to compare quotes
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- Figure 42: Consumer attitudes towards vehicle service/repair, by race/Hispanic origin, June 2010
- Asian respondents more likely to display strong negative opinions
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- Figure 43: Consumer attitudes against vehicle service/repair, by race/Hispanic origin, June 2010
Cluster Analysis
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- Multi-repairers
- Characteristics
- Demographics
- Opportunity
- Service Slighters
- Characteristics
- Demographics
- Opportunity
- Mechanic Loyalists
- Characteristics
- Demographics
- Opportunity
- Characteristic tables:
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- Figure 44: Car service and maintenance repair clusters, June 2010
- Figure 45: Why consumers choose repair shops, by car service and maintenance repair clusters, June 2010
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- Figure 46: What consumers get repaired on vehicle, by car service and maintenance repair clusters, June 2010
- Figure 47: Attitudes towards vehicle service/repair, by car service and maintenance repair clusters, June 2010
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- Figure 48: Consumer attitudes against vehicle service/repair, by car service and maintenance repair clusters, June 2010
- Demographic tables
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- Figure 49: Car service and maintenance repair clusters, by gender, June 2010
- Figure 50: Car service and maintenance repair clusters, by age, June 2010
- Figure 51: Car service and maintenance repair clusters, by household income, June 2010
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- Figure 52: Car service and maintenance repair clusters, by race, June 2010
- Figure 53: Car service and maintenance repair clusters, by Hispanic origin, June 2010
- Cluster methodology
Appendix: Other Useful Consumer Tables
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- Type of service location visited by race/Hispanic origin
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- Figure 54: Type of service location visited, by race/Hispanic origin, June 2010
Appendix: Trade Associations
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