Toronto, Ontario — The average cost of a visit to the repair shop has increased over 2023, regardless of whether a customer visits a dealership or independent facility, according to J.D. Power’s 2024 Canada Customer Service Index—Long Term Study.
According to the study, the average cost of a visit to the dealership is $465 in 2024, compared to $432 a year ago. Comparatively, the average cost of a visit to an independent shop is $273 today, just $11 more than a year ago when the average visit cost $262.
Not only are repair costs affected by current macroeconomic conditions, added J.D. Power; Canadians are also opting to keep their vehicles longer. Forty percent of dealership visits in 2023 were for repairs, compared to 24 percent of aftermarket shop visits.
In 2021, 31 percent of visits to dealerships were for repairs; 21 percent of aftermarket visits were repair-related, implying that owners are opting to keep their vehicles longer, according to J.D. Power.
The organization pointed out that economic pressures are pushing consumers to make different financial decisions, potentially presenting an opportunity for independent repair centres.
“As more owners opt to fix their vehicle instead of buying a new one, auto repair shops have an opportunity to attract more lucrative business in a $13 billion market by excelling in the service factors that drive customer satisfaction, mainly saving time and convenience,” said J.D. Ney, automotive practice lead at J.D. Power Canada. “[Vehicle] owners are being hit with a ‘double whammy’ and have to make different decisions in order to balance their budgets.”
The study also highlights that customers highly value convenience and saving time. Completing service within 90 minutes of drop-off and speedy send-offs are two KPIs that increased the most year-over-year, in terms of measuring overall satisfaction, noted J.D. Power.
Dealerships continued to hold the lion’s share of the auto service and repair service occasion market with a 48 percent market share. Independent shops and quick lube locations capture 27 percent and 11 percent respectively. Market shares remain changed from 2023, however. Average annual visits to the dealership stand at 1.6 visits per owner, per year, compared to 1.3 visits per year in the aftermarket segment.
As such, dealerships take a bigger share of auto service market revenue, capturing 61 percent of revenue compared to 39 percent for the aftermarket.
The Canada Customer Service Index—Long Term Study measures service usage satisfaction among owners of vehicles that are between four years and 12 years in age. The study analyzes the customer experience in both warranty and non-warranty service visits. Overall satisfaction is based on: service quality (32 percent weight); vehicle pick-up (20 percent); service facility (17 percent); service initiation (16 percent) and service advisor (15 percent). The 2024 study is based on responses from 8,750 owners.
Click here for more information on the J.D. Power Canada Customer Service Index—Long Term Study.
The post Economic Influences: Average dealership visit costs $465, compared to independent shop visit at $262, says J.D. Power report appeared first on Collision Repair Magazine.
