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Revenues at car repairs rise, while car sales slump

25 Aug 2017
Revenues at car repairs rise, while car sales slump

Revenues at car repairs and auto-parts stores are rising despite the slump in the U.S. auto sales this year. But why is there such a bid difference between these 3, when they are basically bounded to each other? Well, old vehicles are grinding out more miles, and need replacement parts and repairs almost each month.



The vehicle fleet is still getting older every single year, in spite of our record sales, So you’ve got a significantly larger population of vehicles that require service and are coming in for service pretty regularly. Car dealers didn’t use to handle so much repair work. But when the auto market last contracted in 2008 and 2009, new-car retailers looking for a revenue boost improved their service business to win share from independent shops. They’ve managed to keep a lot of that profitable work even as new-vehicle sales recovered.



It really goes to the fundamentals of how the industry has changed since the last recession, It’s becoming more diversified. But just because your car needs more repair, doesn’t mean buying a used car is a bad idea… Each car after getting out of the dealership, becomes used, and loses almost 20% of its dealership price in the first year.


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