It's nearly impossible to pick up a newspaper, turn on the TV or listen to the radio without coming eye-to-eye or ear-to-ear with advertisements from car dealers touting their ability to service vehicles they sell.
Many also promote quick-service bays and some go so far as to claim they service all makes and models. And no matter which dealer is featured in a given commercial, all share one common thread: Their ads prominently assert the dealer's use of "genuine factory parts."
Once upon a time, the dealer's primary source of revenue was from new car sales. There was profit to be made in the markup of the vehicle, financing and add-on items, such as rust proofing, fabric protection, paint sealing, car alarms and sound systems. In those days, the dealer's service bays were viewed as a necessary evil; they were a prerequisite from the manufacturers.
How times have changed. Today, the margins on new car sales are minimal, add-on items are often factory-installed and interest rates for financing are at historic lows. In the past few years, manufacturers and dealers recognized the potential profit of service bays. Progressive dealers have made sweeping changes in their service departments and are putting forth significant efforts to keep vehicles they sold coming back. Incentives for new car owners include free maintenance during the warranty period and/or free oil changes for life.
At the same time, General Motors (GM) is leading a strong effort to bring clients to its dealers using the OnStar navigation system. The system uses a satellite to automatically run a monthly diagnostic check on the vehicle. The results are sent via e-mail to the vehicle owner with maintenance reminders and information on emissions, tire pressure, oil life and more. Of course, every e-mail gives the client ample opportunity to schedule a service appointment with a GM dealer.
Some manufacturers prefer to hamper competition from the independents by minimizing the amount of proprietary information they release to the aftermarket. A few tough players make their information available online — at a high price — and also create the need for expensive service tools.
As vehicles become more reliable and the competition for servicing these vehicles increases, so does the risk of manufacturers and dealers playing information games. The reality of economics brings us to the need for the Right to Repair Act.
Aftermarket parts jobbers and independent shops need to recognize OE dealers as our most serious competitors. Every day, independent service facilities close their doors and we lose market share to dealers.
We need to educate customers about the advantages of having vehicles serviced at independent service facilities, including that most aftermarket parts manufacturers produce parts equal to or better than OEMs. While price is a strong selling point, many consumers also understand the benefit of paying the same or more for a part that is guaranteed to last longer than the failed OEM part.
This educational information should be conveyed to the consumer and technician. If we want to be a worthy contender and stand strong against the dealer, we need to unify our groups and points of view. We must work together to build awareness for consumers that the dealership is not always the best place to have their vehicles serviced.
Chuck Hartogh is vice president and co-founder of C&M Auto Service Inc. of Glenview, Ill. and Vernon Hills, Ill., and is an ASE-Certified Master, L1 Technician. (ASA).
