Automotive Repair Shops Facing Biggest Problem Yet – Technology

We may be buried under many many inches of snow, but that has never stopped us from doing what we do best, and that’s baring the frigid temperatures and continuing to push through. In light of the recent snow storms we have been getting (literally every week for 3 weeks consecutively in January till now), I decided to write about something I should have released a post on since the very beginning (so sorry!) but I feel now is the best time to over any. For this week’s article, we will be taking a dive into how the modern day technologically advanced vehicle is having an impact on automotive repair shops. 

I’m sure for many, especially in the younger generations today, hearing the line “Things are so different now than they were back in my day” is one that is heard almost everyday in relation to so many different things. And as annoying as it can be sometimes to listen to, it’s true, and we are starting to see this more in the automotive industry now as well. Specifically, I’m talking about cars, and how advanced they have become, not only in the way that they are modified, but also in the way they are taken care of. Many vehicles nowadays are filled with technology, whether it be through the Bluetooth connection, a wired connection through a USB port, or even just the capability to have entertainment (and by this I mean your child’s favourite show playing while you drive); the way we are and continue to be connected is actually getting quite scary admittedly. 

Taking your vehicle into an auto repair shop is nothing now like it was back when cars were first introduced. Sure, at the time, cars that had the capability of including a built-in phone experience did exist, but very few actually owned one and those who did, could afford to bring it to the best of the best to get things fixed when needed. Nowadays, with the way that technology is advancing and at such a quick pace too, it’s very hard to keep up with the latest tech when it’s always changing. Now this isn’t to include all auto repair shops under this blanket, as many exist in partnership with the dealership, but we are focusing more on the independent ones in society, which could also prove to be much cheaper too. Sure, it’s easy to find a repair shop that can perform the basic repairs to a car, take for instance repairing a windshield, changing/rotating tires, or even repairing a bumper. But it’s when it gets down to the finer details like recalibration that the actual issue arises.

This recalibration process involves technology, either through a scanner, a computer, or both working to clear and adjust the numbers internally from the work just performed. In order for this to be successful, the shop must obtain access to very specific data in relation to the vehicle, which is where many are finding the roadblock. Oftentimes, a repair that includes recalibration and requires an access code may be locked by the manufacturer, leaving the shop with only 2 options – call the dealership or pay a subscription fee to obtain the data, overtime creating a very expensive venture thanks to the variety of makes and models that exist. Once the dealership is contacted, there is more costs involved especially for the consumer – they have to pay to get the vehicle towed to the dealership, which at that point the dealership will assess the problem and the consumer will have to pay for the repair to be finalized there; essentially paying out of pocket 2 times for the same fix.   

Then there’s the many vehicles that have been produced within the last decade or so that allow the dealership to send over-the-air updates to the vehicle directly, completely eliminating the need to visit an auto repair shop to get the same maintenance performed. According to a statistic included in the article linked here, without even trying to and having their hand forced, when an auto repair shop located in an urban setting turns away one customer every week, that means they are losing around $15,600 or 9% from their annual profit numbers. Now, these numbers get even scarier for auto repair shops located in a rural setting – under the same conditions, a rural auto repair shop would lose around $9,360 in profits overall which is equivalent to a 16% hit.   

A recent study revealed that car owners prefer to get their work done at these independent auto repair shops mainly due to the cost savings for the various work done to their vehicles. They save on average around $10-$15 per transaction for the same work that would be done at the dealership, with common repairs such as an oil change for example, seeing anywhere between a 10-25% cheaper cost. 

I just want to make something clear, it’s not to say that all hope should be lost if you are an auto repair shop worker or owner however, simply due to the fact that there has to be diversity in the market. If economics taught me anything, it’s that the increase in competition should force other competitors to lower their prices which in the eyes of the consumer, they will slowly realize that dealerships are beginning to monopolise on this technology aspect, and hopefully the consumers will start to put their feet down. Technology can be seen as a good thing and a bad thing. In this instance, it is bad because it’s bad for business, but technology is developing and becoming more abundant in our everyday lives. 

Final Thoughts 

The hurdles faced today within this line of work, although it may be deterring and discouraging to many, everyone should stay hopeful. There will be a point in time where things will get better for this sector, the unfortunate reality right now though, are these people are just sitting ducks until this happens.