Repair Shops Beating Car Dealerships in Service - Tire Review Magazine

Repair Shops Beating Car Dealerships in Service

Repair shops are reportedly performing better than car dealership service departments, Wardsauto.com reports.

Marylou Hastert, director of product marketing for DealerSocket, a customer-relationship software firm, told Wardsauto.com that independent repair shops – including tire dealers – own about 75% of the service market.

According to DealerSocket’s Dealership Action Report on 6,500 auto dealerships, 53% of the average dealership’s gross profit comes from the service department, but only 30% of sales customers return for service within the first year of buying the car. After three years, returning car sales customers drop to 13% and to 2% after five years.

That means that car dealers lose some 70% of their sales customers to independent service providers, and that number grows as the vehicle ages.

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