Auto Service World
Feature   December 1, 2008   by Auto Service World

Service Overview

Share of Service Occasions Performed by Vehicle Age

Aftermarket outlets gained service share from dealerships, a trend that started last year after five years of losing share.

Every 1% of share translates to over $100 million in revenue. The gain by the aftermarket is mainly among younger vehicles in the two-to three-year-old age groups; this is counterintuitive as this group should have more reason to obtain service at the dealership as they are still covered under warranty.

Type of Service Performed by Vehicle Age

Lube, oil, and filter (LOF) service work captured an even larger percentage of service share, with a 2% gain over last year; LOF service now accounts for 43% of all service work performed. The gain is at the expense of brake service and engine/fuel system service, both of which dropped by 1% this year. Other services, which include more involved vehicle work and tire work, both remain steady over last year and account for 17% and 12% respectively of all work performed.

Warranty Service

Coinciding with the dealerships’ loss in service share to the aftermarket is an overall decline in the percentage of service performed under warranty. Muffler/exhaust work and tire work experienced the largest declines over 2007, at 2% each.

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