Modern automotive technology is a boon for consumers but a bust for auto-repair shops.
As cars and their component parts have become better engineered and more reliable, auto mechanics are watching business drop off.
Despite some shops that have seen a recent increase in repairs for cars damaged by blizzard- blasted roads, the long-term trend points to fewer repairs.
“We used to be booked up at least a week out,” said Ron Creach, co-owner of Green Mountain Auto Service in Wheat Ridge. “Now I rarely have to put anybody off for even a day.”
At the Maintenance Shoppe in Denver’s Golden Triangle, annual revenue is down 30 percent from 2001.
“We used to have four technicians, and now we’re down to two,” owner Steve Griboski said. “It’s slow enough that I just can’t afford to have people standing around.”
Service departments at auto dealerships are not immune to the downturn in the service business.
“Generally, that trend is true,” said Lee Payne, owner of Planet Honda in Golden. “Fortunately for us, we’re selling a lot more cars. But for service, we’re just seeing less from each customer, which is a good thing for the customers.”
General Motors officials told Colorado Automobile Dealers Association chief Tim Jackson that warranty claims on GM vehicles have dropped 40 percent in the past five years.
“That would tend to verify that cars are built better, that they last longer and they require less service,” Jackson said.
Nationally, service and parts sales at dealerships flattened in 2004 and dropped 0.4 percent in 2005 to $85.2 billion.
“Cars on average are needing less service,” said Paul Taylor, chief economist of the National Automobile Dealers Association. “The better reliability of cars reduces the amount of repair business, but that is partially offset by having more cars on the road.”
The number of U.S. cars on the road has grown from 193 million in 1995 to 239 million in 2005, according to the Polk Co.
Servicing those cars has become increasingly competitive, with chains such as Grease Monkey, Jiffy Lube, Midas and Meineke siphoning business from dealers and independent repair shops, said senior automotive analyst Mary-Beth Kellenberger of consulting firm Frost & Sullivan.
Better reliability has enabled owners to hold their cars longer, 9.1 years in 2006 compared with 8.6 years in 2002, Kellenberger said.
Pro Chrysler Jeep owner John Schenden said he has fought off the industry decline in service business by trying to offer competitive pricing and extended hours.
As a result, his parts and service business has grown 8 to 10 percent annually in recent years.
“We can service quicker than the independents, and we have the right equipment,” he said. “We want the people who purchase our vehicles to be in the habit of coming back here.”
Staff writer Steve Raabe can be reached at 303-954-1948 or sraabe@denverpost.com.
