Consumers scrimping on auto repair costs during a difficult economy: J.D. Power and Associates

Average annual expenditures on vehicle maintenance and repair services have declined by approximately 7% from 2008, according to J.D. Power and Associates’ recently released 2009 Canadian Customer Commitment Index Study.
Conducted between April and June 2009, the study is based on responses from 14,388 owners across Canada whose vehicles are between three and 12 years old.
The survey found that average annual spending on vehicle maintenance and repair services declined to Cdn$856 in 2009, down from Cdn$920 in 2008.
Furthermore, the proportion of customers who said they “go to the cheapest place I can find for service” increased to 23% from 17% in 2008.
“In a difficult economy, vehicle owners seem to be delaying what they perceive to be non-essential maintenance or seeking out the lowest-cost option,” said Darren Slind, senior director and Canadian automotive practice leader at J.D. Power and Associates. “In the long run, this may prove more costly in terms of vehicle reliability, but in the short term, consumers are dealing with other spending priorities.”
The study also found new-car dealers continued to lose market share to after-market service providers. Overall, after-market providers now account for 59% of the estimated Cdn$11.2-billion annual service market for vehicles that are between three and 12 years old, up from 57% in 2008.
“While a two-percentage-point shift may not seem substantial, this equates to more than [Cdn]$220 million in lost revenue annually for dealers,” said Slind.
“Given declining new-vehicle sales — which are down more than 16% in Canada so far this year — dealers must rely more than ever on their service and parts operations. We expect that dealers will fight back aggressively in the coming year to recapture this lost market share.”
When customers were asked how service providers could make their hours of operation more convenient, nearly 40% cited extended weekday (evening) hours.