Auto Service, Maintenance and Repair - US - December 2014

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
The market
Consumer expenditures on auto maintenance top $160 billion
Figure 1: Total consumer expenditures and fan chart forecast for auto maintenance and repair parts and services, 2009-19
Vehicle age at an all-time high, creating more demand for repair
Figure 2: Average age of cars, light trucks, and total light vehicles, 2002-13
The consumer
One third of respondents choose dealerships for auto service
Figure 3: Where auto service or repair was completed, September 2014
Three quarters of respondents performing preventive maintenance
Figure 4: Type of service/repair last done on vehicle, September 2014
Most auto work is preventive, routine
Figure 5: Specific components worked on at last service or repair, September 2014
Men spend far more than women on maintenance and repairs
Figure 6: Average amount spent on vehicle maintenance/repairs in past two years, by gender, September 2014
Divergence in attitudes and behaviors between ages
Figure 7: Attitudes toward auto maintenance, by age, September 2014
Young consumers eager for instruction
Figure 8: Attitudes toward auto ownership, care, and maintenance, by age, September 2014
What we think
ISSUES AND INSIGHTS
Can preventive care be marketed as a money-saving tool?
The issues
The implications
How can non-dealerships continue to compete?
The issues
The implications
How can brands market their experts?
The issues
The implications
TREND APPLICATION
Trend: Influentials
Trend: Locavore
Trend: Survival Skills
MARKET SIZE AND FORECAST
Key points
Consumer expenditures on auto maintenance top $160 billion
Figure 9: Total US consumer expenditures for auto maintenance and repair parts and services, at current prices, 2009-19
Figure 10: Total US consumer expenditures for auto maintenance and repair parts and services, at inflation-adjusted prices, 2009-19
Fan chart forecast
Figure 11: Total US consumer expenditures and fan chart forecast for auto maintenance and repair parts and services, 2009-19
MARKET DRIVERS
Key points
Average age of vehicles at all-time high
Figure 12: Average age of cars, light trucks, and total light vehicles, 2002-14
Far fewer dealerships now than pre-recession
Manufacturers offering free maintenance incentives
Tesla’s downloadable software upgrade foreshadows future
Right to Repair Act still in legal motion
RETAIL CHANNELS
Key points
Dealers, independents popular while franchises highly segmented
Figure 13: Retail stores visited and services received – Tune-up, April 2013-June 2014
Dealerships account for approximately half of car service expenditures
Figure 14: Automotive dealers’ total service and parts sales (Franchise dealers), 2004-13
Number of dealerships in steady decline
Figure 15: Number of dealerships selling new cars, 2003-13
Service and repair account for 11.6% of dealership profits
Figure 16: Automotive dealerships’ revenue split, by new, used sales and service, share of total sales dollars (Franchise dealers), 2002 vs 2013
Dealerships competing with “quick lube” services
Figure 17: Breakdown of franchise dealership service and parts operations, average dealership vs all dealer totals, 2013
Franchise sector highly fragmented
Pep Boys
Jiffy Lube
Firestone
TBC Corporation
Driven Brands
Goodyear Tire & Service
AAMCO Transmissions
Monro Muffler Brake
INNOVATIONS AND INNOVATORS
Hyundai Blue Link infotainment provides Car Care features
Consumers benefit from convenience and competition with apps
MARKETING STRATEGIES
Quanz Auto Care emphasizes local touch
Figure 18: Quanz ad, brothers, July 2014
Pep Boys rebrands with relationship-based message
Figure 19: Pep Boys ad, The boys will get you there, July 2013
AutoZone partners with fighter Chuck Liddell to show durability
Figure 20: AutoZone ad, Duralast battery walk the walk, March 2014
GMC markets free Pro Grade maintenance program
Figure 21: GMC ad, pull the chains, March 2013
AUTOMOTIVE SERVICES COMPLETED
Key points
Tire rotation most common auto service
Figure 22: Automotive services completed in last 12 months, April 2013-June 2014
Maintenance service more common as household income rises
Figure 23: Automotive services completed in last 12 months, by household income, April 2013-June 2014
HOUSEHOLD VEHICLE OWNERSHIP
Key points
Most households own one or two vehicles
Figure 24: Number of vehicles in household, September 2014
More affluent households own more cars
Figure 25: Number of vehicles in household, by household income, September 2014
Passenger car most common vehicle type
Figure 26: Type of vehicles owned, by gender and age, September 2014
SUVs/crossovers become more common as household income increases
Figure 27: Type of vehicles owned, by household income, September 2014
New cars slightly more favored
Figure 28: New, used, or CPO, by gender and age, September 2014
WHERE AUTO SERVICE OR REPAIR WAS COMPLETED
Key points
One third of respondents complete service at dealerships
Figure 29: Where auto service or repair was completed, September 2014
Older consumers far more likely to visit dealership for repairs
Figure 30: Where auto service or repair was completed, by age, September 2014
Dealerships most popular among more affluent consumers
Figure 31: Where auto service or repair was completed, by household income, September 2014
Big box retailers twice as popular among parents
Figure 32: Where auto service or repair was completed, by presence of children in household, September 2014
How car purchased (new/used) determines where serviced or repaired
Figure 33: Where auto service or repair was completed, by new, used, or CPO, September 2014
TYPE OF SERVICE/REPAIR
Key points
Three quarters of repair work is for preventive maintenance
Figure 34: Type of service/repair last done on vehicle, by age, September 2014
Parents, performing less routine maintenance, need more repairs
Figure 35: Type of service/repair last done on vehicle, by presence of children in household, September 2014
Preventive maintenance often performed at dealerships
Figure 36: Type of service/repair last done on vehicle, by where auto service or repair was completed, September 2014
METHOD OF PAYMENT FOR LAST PURCHASE OF SERVICE/REPAIR OR PARTS
Key points
Younger consumers having service paid by provider
Figure 37: Method of payment for last purchase of service, repair, or parts, by gender and age, September 2014
Provider more likely to pay for more affluent consumers’ car service
Figure 38: Method of payment for last purchase of service, repair, or parts, by household income, September 2014
New cars twice as likely to be paid for by provider
Figure 39: Method of payment for last purchase of service, repair, or parts, by new, used, or CPO, September 2014
SPECIFIC COMPONENTS WORKED ON AT LAST SERVICE OR REPAIR
Key points
Most auto work is preventive maintenance
Figure 40: Specific components worked on at last service or repair, by age, September 2014
Household income has little effect on type of repair
Figure 41: Specific components worked on at last service or repair, by household income, September 2014
Used car owners performing more preventive engine maintenance than new car owners
Figure 42: Specific components worked on at last service or repair, by new, used, or CPO, September 2014
Big box retailers visited for many types of work
Figure 43: Specific components worked on at last service or repair, by where auto service or repair was completed, part 1, September 2014
DIYers focus on engine preventive, tires, and brakes
Figure 44: Specific components worked on at last service or repair, by where auto service or repair was completed, part 2, September 2014
AMOUNT SPENT ON VEHICLE MAINTENANCE/REPAIRS
Key points
Consumers spend $1,700 on vehicle maintenance and repairs
Figure 45: Amount spent on vehicle maintenance/repairs in past two years, by gender, September 2014
25-34 year-old consumers spend far more on vehicle maintenance
Figure 46: Amount spent on vehicle maintenance/repairs in past two years, by age, September 2014
Amount spent on maintenance/repairs increases with household income
Figure 47: Amount spent on vehicle maintenance/repairs in past two years, by household income, September 2014
New vehicles cost the most to repair and maintain
Figure 48: Amount spent on vehicle maintenance/repairs in past two years, by new, used or CPO, September 2014
ATTITUDES TOWARD AUTO MAINTENANCE
Key points
Majority of consumers don’t service their vehicles regularly
Figure 49: Attitudes toward auto maintenance, by gender, September 2014
Divergence in attitudes between ages
Figure 50: Attitudes toward auto maintenance, by age, September 2014
Less affluent looking for affordable, local repair shop
Figure 51: Attitudes toward auto maintenance, by household income, September 2014
New car owners more responsive to maintenance signals
Figure 52: Attitudes toward auto maintenance, by new, used, or CPO, September 2014
ATTITUDES TOWARD AUTO OWNERSHIP, CARE AND MAINTENANCE
Key points
Men far more likely than women to be auto enthusiasts
Figure 53: Attitudes toward auto ownership, care, and maintenance, by gender, September 2014
Young consumers eager for instruction
Figure 54: Attitudes toward auto ownership, care, and maintenance, by age, September 2014
Less affluent consider car as method to get from point A to point B
Figure 55: Attitudes toward auto ownership, care, and maintenance, by household income, September 2014
Car maintenance can provide an “escape” for parents
Figure 56: Attitudes toward auto ownership, care, and maintenance, by presence of children in household, September 2014
IMPACT OF RACE AND HISPANIC ORIGIN
Key points
Hispanics far less likely to complete service at dealership
Figure 57: Where auto service or repair was completed, by race/Hispanic origin, September 2014
Blacks, Hispanics do less preventive work, suffer more repair
Figure 58: Type of service/repair last done on vehicle, by race/Hispanic origin, September 2014
Hispanics paid an average of $2,531 on recent repairs
Figure 59: Amount spent on vehicle maintenance/repairs in past two years, by race/Hispanic origin, September 2014
Hispanics, less likely to perform service, not necessarily drawn to local
Figure 60: Attitudes toward auto maintenance, by race/Hispanic origin, September 2014
Blacks and Hispanics purchase automotive accessories
Figure 61: Attitudes toward auto ownership, care, and maintenance, by race/Hispanic origin, September 2014
APPENDIX – OTHER USEFUL CONSUMER TABLES
Household vehicle ownership
Figure 62: Number of vehicles in household, by race/Hispanic origin, September 2014
Figure 63: Type of vehicles owned, by race/Hispanic origin, September 2014
New, used, or CPO
Figure 64: New, used, or CPO, by household income, September 2014
Figure 65: New, used, or CPO, by race/Hispanic origin, September 2014
Where auto service or repair was completed
Figure 66: Where auto service or repair was completed, by method of payment for last purchase of service, repair, or parts, September 2014
Figure 67: Where auto service or repair was completed, by number of vehicles in household, September 2014
Figure 68: Where auto service or repair was completed, by type of vehicles owned, September 2014
Type of service/repair completed
Figure 69: Type of service/repair last done on vehicle, by household income, September 2014
Figure 70: Type of service/repair last done on vehicle, by type of vehicles owned, September 2014
Figure 71: Type of service/repair last done on vehicle, by new, used, or CPO, September 2014
Figure 72: Type of service/repair last done on vehicle, by where auto service or repair was completed, September 2014
Figure 73: Type of service/repair last done on vehicle, by method of payment for last purchase of service, repair, or parts, September 2014
Method of payment for last purchase
Figure 74: Method of payment for last purchase of service, repair, or parts, by presence of children in household, September 2014
Figure 75: Method of payment for last purchase of service, repair, or parts, by type of vehicles owned, September 2014
Figure 76: Method of payment for last purchase of service, repair, or parts, by race/Hispanic origin, September 2014
Specific components worked on
Figure 77: Specific components worked on at last service or repair, by gender, September 2014
Figure 78: Specific components worked on at last service or repair, by presence of children in household, September 2014
Figure 79: Specific components worked on at last service or repair, by type of vehicles owned, September 2014
Figure 80: Specific components worked on at last service or repair, by race/Hispanic origin, September 2014
Figure 81: Specific components worked on at last service or repair, by type of service/repair last done on vehicle, September 2014
Amount spent on vehicle maintenance
Figure 82: Amount spent on vehicle maintenance/repairs in past two years, by presence of children in household, September 2014
Figure 83: Amount spent on vehicle maintenance/repairs in past two years, by type of vehicles owned, September 2014
Attitudes toward auto maintenance
Figure 84: Attitudes toward auto maintenance, by presence of children in household, September 2014
Figure 85: Attitudes toward auto maintenance, by type of vehicles owned, September 2014
Attitudes toward auto ownership, care, and maintenance
Figure 86: Attitudes toward auto ownership, care, and maintenance, by new, used, or CPO, September 2014
Figure 87: Attitudes toward auto ownership, care, and maintenance, by type of vehicles owned, September 2014
APPENDIX – TRADE ASSOCIATIONS