C
Curbee, which provides technology for auto dealers, said Monday a study shows market forces are making the case for more mobile vehicle service by dealers.
According to the study, there are 16 independent auto repair shops for each franchised dealership in the U.S.
“The average American drives past 16 places that can service their car before they get to their local franchised dealer. That’s bananas,” Curbee CEO Amit Chandarana said in a statement.
“But it’s also a massive opportunity,” he added. “Dealers who ‘go mobile’ literally meet their customers where they are, deliver speed and transparency, and win loyalty without adding bricks and mortar.”
Traditionally, vehicle owners took their cars and trucks to dealerships, garages and other providers of service for such things as oil changes, tire rotation, battery replacement, and work related to recalls. The time needed for such services can vary. Vehicle owners either waited while tasks were performed, or arranged to have rides until such work was completed.
Advocates of mobile service, such as Los Angeles-based Curbee, say it can be more convenient and save time for vehicle owners. With mobile service, routine work is performed at a customer’s home by mobile service units.
Also, vehicles are increasingly computers on wheels. At times, vehicles sometimes require software updates, similar to personal computers and smartphones. Such updates can be provided by mobile service units.
The new study was based on public information from various sources. Those sources included the Auto Care Association; trade publication Automotive News; Cox Automotive; the National Automobile Dealers Association; the U.S. Bureau of Labor Statistics; IBISWorld; and S&P Global Mobility.
Some findings of the study:
Older vehicles: The average age of U.S. vehicles is now 12.8 years. Amid rising vehicle prices, consumers are holding onto their cars and trucks longer. That also means there are more vehicles with expired warranty plans. Regular work, such as oil changes, can stretch the life of vehicles.
Shift away from dealers: Curbee said dealer service appointments down 6% year-over-year, citing Cox Automotive’s Xtime. The dealership business has been consolidating. The number of dealership owners has declined as owners of single or only a few stores sell out to large groups. At the same time, independent repair shops are seeing increases in year-over-year appointments.
There are more than 302,000 auto mechanic businesses compared with about 18,000 U.S. dealers, Curbee said, citing information from Automotive News and IBISWorld.
Curbee’s report “finds independent repair shops are perceived as closer, faster, less expensive and more flexible,” the company said.
For dealers, mobile service “doesn’t just retain customers, it brings back the ones who already left,” Chandarana said in the statement. He said mobile service allows dealers to boost customer satisfaction.
