NPD Group's Car Care Trac Shows Dealerships as Leading Service Outlet Channel in U.S.

NPD Group’s Car Care Trac Shows Dealerships as Leading Service Outlet Channel in U.S.

With more than 237 million vehicles on the road, there are big bucks at stake in the U.S. automotive service and repair industry. Understanding where consumers take their vehicles for service, and why, is crucial to acquiring a share of the professional service market. According to consumer and retail information company The NPD Group, consumers choose to take their vehicles to their auto dealer for 22 percent of service occasions, making the dealership the leading service outlet channel in the U.S. An analysis of what is driving traffic to the dealer channel reveals some interesting opportunities for other outlets, as well, says NPD.

PORT WASHINGTON, NY – With more than 237 million vehicles on the road, there are big bucks at stake in the U.S. automotive service and repair industry. Understanding where consumers take their vehicles for service, and why, is crucial to acquiring a share of the professional service market.

According to consumer and retail information company The NPD Group, consumers choose to take their vehicles to their auto dealer for 22 percent of service occasions, making the dealership the leading service outlet channel in the U.S. An analysis of what is driving traffic to the dealer channel reveals some interesting opportunities for other outlets, as well, says NPD.

NPD’s latest survey on the subject, called the Car Care Trac, reports on consumer purchasing behavior in the North American automotive aftermarket, including do-it-yourself (DIY) products and do-it-for-me (DIFM) automotive service purchases. Each month NPD surveys thousands of automotive product and service buyers in the U.S. and Canada to offer valuable insights into who is buying, where and why.

Distribution of U.S. Service Channel Outlets

The majority of automotive service transactions are maintenance transactions — not repair transactions, according to NPD’s research. Car dealers tend to notice a much higher percentage of their services coming from maintenance service occasions, which is the key to their lead in market share performance. When it comes time to make vehicle repairs, consumers tend to be more likely to visit a traditional repair shop or specialty outlet, such as a transmission, brake or muffler shop.

Percentage of Repair vs. Maintenance Transactions by Outlet Type

“Repair and maintenance occasions are where the battle for market share is being waged between car dealers and the aftermarket,” said David Portalatin, director of industry analysis for NPD. He adds, “The traditional advantage car dealers enjoy with new vehicles is an ongoing driver of their dominance within the maintenance market.”

Older vehicles, which are more likely to need repair, have been the traditional domain of the aftermarket. Now, dealers are working to extend their relationship with consumers throughout the life of their vehicles, in order to capture their share of the repair market.

For more information about NPD, visit: http://www.npd.com.

* Image courtesy of NPD