Business opportunity for auto dealers: Service

With soft car sales (and some would-be buyers unable to find financing), auto dealers are hurting and looking for new ways to bring some money in the door. One answer may be to put a new emphasis on the service department. Some recent research indicates that dealers may need to work on their image in that department.

According to the current issue of Consumer Reports, 84% of car owners surveyed were “very satisfied” with maintenance performed at independent shops, compared to only 77% who had service done at a dealership. The survey by the Consumer Reports National Research Center involved 349,000 vehicles owned by Consumer Reports subscribers.

While satisfaction was higher with independent mechanics, some new car dealerships scored much higher than others. Lexus (no surprise) scored 85%, with Buick at 83% and Acura 82%. At the other end of the spectrum, Volkswagen dealers scored only 67%, with Suzuki at 69%, and Jeep and Nissan each at 70%.

Among owners whose cars needed repairs as well as maintenance, the difference in satisfaction with dealers and independent shops was even more pronounced: 75% were very satisfied with independents versus just 57% with dealerships.

Despite the turmoil surrounding the American auto industry, six American automakers (Buick, Saturn, Mercury, Cadillac, Lincoln and Oldsmobile) ranked among the top ten in terms of customer satisfaction with dealership maintenance.

"In many cases, we heard that independent shops were more thorough and consumers were more satisfied with repairs they made, there was less of a difference in routine service," said David Champion, senior director, Consumer Reports Auto Test Center.

The obvious business opportunity is for auto dealers to advertise their service department and emphasize that they do not service only the brand that they sell. That could be an important opportunity if a nearby dealership for another nameplate has recently closed its doors.

Be warned, though. Before launching an ad campaign for their service department, the dealer had better be sure that the service department really is up to snuff. Drawing consumers in for a bad experience won’t build business.

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