Dealership service activity decreased by nearly six percent in July 2022, according to a study conducted by Cox Automotive, with parts and labor shortages contributing to long wait times for consumers to get their vehicles serviced.
According to Cox’s Repair Order Volume Index, which is designed to provide a glimpse into service department performance at franchised dealerships in the U.S., was down six percent month over month from June and 9.8 percent year-over-year from July 2021. The average revenue generated per repair order also decreased by $4, reaching its lowest level since February, while Cox’s Repair Order Revenue Index for measuring service revenue was also down 0.7 percent from June and 10.7 percent year-over-year.
Cox Automotive Chief Economist Jonathan Smoke said the decline in dealership service appointments is due to parts shortages and increased wait times. These less-than-ideal conditions are also leading some consumers to delay service appointments as long as possible.
“In speaking with dealers, I am hearing that this unexpected decline in service appointments observed in July Xtime data is likely related to their own capacity and labor challenges,” said Smoke. “This situation is creating wait times for consumers to get cars serviced.”
“Technician shortages limit capacity, and at the same time ongoing supply chain issues are impacting the delivery of some parts,” he added. “It is also a difficult time to get loaner or rental cars, and that may be creating an additional inconvenience. Consumers may be delaying service and repair appointments, hoping the situation will improve in the future.”
Cox is able to calculate dealership service data as its Xtime subsidiary provides software that helps auto dealers schedule service appointments, facilitating more than 10 million service appointments in the U.S. annually.
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Comments
$125 labor will do that
No… 9.1 and 8.2 inflation, gas prices in 4-7 dollar range, and high grocery prices. Pick your poison, car maintenance or food on the table for the kids, meaning less driving to spend money on gas and wear and tear… Saving what you can for kids sporting activities and back to school stuff. Don’t forget the dreaded credit card usage of charging to pay what the inflation took away from the paycheck.
Car maintenance can be viewed as preventive (pay me now or pay me later) or extend my preventive until I the car feels different…
Getting vehicles serviced is a problem now a lot of times they don’t have the parts . And have to keep your vehicle for a day or more .
Labor shortage started with the baby boomer generation retiring. Born 1946-1964. We are only about 1/3 through so it will get worse.
I dont think a 6% drop is what I would call significant. In all honesty, with people driving less to save fuel and less new car sales, I would expect this to be more in the 15-25% drop in activity.
Dealerships flat rates have always been exorbitant compared to the independent repair shops. After all you’re paying for their big overhead costs. Service reps will always try to up sell you for services you don’t need, that’s how they make their spiffs (extra commissioned income). And if it’s something under warranty (Which GM pays a whole lot less) you’ll get the old reply, “We’ll get back to you on that”, and they never do. I suggest you find a good, honest, reputable independent auto repair facility. Their flat rates are normally half that of a dealership and also the cost of parts.
Took my GMC Terrain in for the second free oil change at 8000 miles. Service tech said I really need to spend the $200 on a throttle body cleaning. I guess dumb people fall for that. I avoid the stealership at all costs.
The engine has a problem if it needs to be cleaned a 8k,tel them that.
Trade it in,get lowballed on your trade and pay additional dealer mark-up.
People may be driving less but they are still fixing their cars, just not at the dealership. Look at the data a little deeper and outside of Cox dealer data. Parts sales are up at O’Reilly auto parts. What does that tell you???