Independent auto repair shops are increasingly working on older vehicles as they struggle to keep pace with rapid advances in automotive technology, said an industry shop coach.
Murray Voth, president of RPM Training, said the shift is happening gradually and often without shop owners realizing it. As dealerships retain a growing share of newer vehicles, independent shops are left servicing much older vehicles, a trend he said is eroding profitability and increasing operational strain.
“We have now slipped into [servicing] older cars, not because dealerships are taking all the work, but because we have not paid attention to technology,” Voth said.
During his session at the AIA Canada National Conference, Voth pointed to industry data showing independent shops continue to lose market share, despite steady demand for repair work. He said many shops still appear busy, which masks the underlying problem.
“Shops wake up every morning and fix what shows up,” Voth said. “They do not notice the vehicle mix changing.”
Older vehicles, he said, are not necessarily easier to work on. They are often harder to diagnose, harder to source parts for and more likely to be owned by consumers under financial pressure. That combination increases friction at the counter and reduces opportunities for higher-value repairs.
“The older the car, generally, the more financially challenged the person that owns it, and those cars are harder to work on and harder to source parts for,” Voth said.
Most independent mechanical shops in Canada are small operations, Voth noted. About 60 per cent have between one and four employees, while nearly 90 per cent have fewer than nine. Smaller shops, he said, often lack the capital and time to invest in ongoing technology upgrades and training.
As a result, they fall behind newer vehicle systems, including advanced electronics and driver assistance technologies, pushing newer cars back to dealerships for service.
Financial pressures compound the issue. Voth said the average Canadian carries significant consumer debt, including rising auto loan balances. While vehicle ownership costs continue to climb, maintenance and repair spending is often deferred.
This creates a cycle where consumers hold onto older vehicles longer but underinvest in proper maintenance, leading to more breakdowns and unperformed repairs, he observed.
Voth estimated there are billions of dollars in deferred maintenance across Canada, representing lost opportunity for independent shops. Closing that gap requires better communication with customers and a stronger focus on professional service rather than price competition, he said.
Shops that fail to adapt, Voth warned, risk being trapped in a low-margin segment of the market, working harder on older vehicles while falling further behind technologically.
“Everybody in this room should be passionate about keeping Canadians in the cars they already own for longer, instead of pushing them further into debt,” Voth said.
Image credit: Depositphotos.com
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Shops that are not able to keep up with technology will fall the way of the dinosaurs. Shops owe their customers the ability to service their vehicles no matter what year the vehicles are. Older vehicles may be simpler but obtaining parts is increasingly difficult. Give the consumers a reason to change their service provider and they will look for someone who can look after their vehicle requirements. In today’s market you have to pay to play.
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I cant believe these consultants get paid for their knowledge. In one breath he says shops should be keeping up with newer technology and working on newer cars because older cars are harder to diagnose. Possibly but generally that is not true. Then in the next breath he says that we should be keeping Canadians in their cars they already own for longer, which I presume those cars would then become the “older” cars he is referring to. He states that billions of dollars of deferred maintenance are not being performed requiring better communication with customers. He then states because of deferred maintenance and repairs “This creates a cycle where consumers hold onto older vehicles longer but underinvest in proper maintenance, leading to more breakdowns and unperformed repairs” That’s a very inaccurate and confusing statement. If a customer does not maintain their car and it starts costing to much money in repairs then that vehicle will be replaced. This leaves me to question, while we are losing billions in deferred maintenance are we not making much more money in breakdown repairs? But what he is not mentioning is that manufactures today are building a throw-a-way product regardless of the maintenance performed. Fifteen years of continual cam and lifter failure issues on domestic trucks, Korean GDI oil consumption and crankshaft bearing failures, Ecoboost exhaust manifold bolts breakage are all failures that end up with vehicle replacement and unperformed repairs. Those are just some of the deferred repairs I’ve seen in the last couple of weeks and the list goes on and on. Successful shops go after the general repairs and slowly implement new technology. Jumping on every band wagon and every new tool that comes your way, will surely put you in receivership. I myself will train for the latest and greatest to be ready to tool and implement a service or repair into my shop; if and only if there is a revolving door of revenue to be made. Until then I have no problem sending my customers back to the dealer, with no doubt in my mind that those same customers will be returning to my shop.
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Ever try calling a dealership for service? At least in our town there is not much to be desired at the dealerships. They even struggle to find staff to fill the huge shops. We are always keeping up with the latest and greatest scan tools, training, and what ever we can do. I make purchases for our three locations carefully, and thoughtfully. When it comes to buying equipment, tools etc I always buy the best I can afford at the time.
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I don’t understand why the people expressing their opinions in this magazine always brag about their own accomplishments and come across like they are marketing their business for consumers. Consumers don’t read this magazine your peers do. Regurgitating gospel from con men does not mean you operate a successful business. It means you belong to a cult. Stating the fact that you work on all makes and models from the Ford Model “T” to a Bugatti is not truthful. Stating that your shop is equipped with the latest and greatest equipment including all manufacture interface devises and subscriptions, the ability to flash and reprogram any make and model vehicle including theft deterrent and key fob programming with ease, and all ADAS and EV equipment is not achievable. Stating that dealerships are not professional businesses is not accurate and needs to stop. Your not helping other shops and the next generation succeed. Your making people feel incompetent compared to your supposed greatness and are scaring everyone out of this industry. The success of the aftermarket industry is not about what your falsely promoting, and the next generation needs to hear this.
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