Aftermarket Facilities Continue to Capture the Majority of Post-Warranty Auto Service Business

Lexus Dealers Rank Highest in Satisfaction with Vehicle Service for Third Consecutive Year; Shell Ranks Highest Among Aftermarket Service Providers

October 30, 2002

Westlake Village, Calif.— Despite the fact that automotive dealerships have at least three years of warranty experience to develop relationships with their customers, the majority of consumers visit non-dealer service centers for post-warranty repairs and service, according to the J.D. Power and Associates 2002 Service Usage and Retention StudySM (SURS) released today.

“Customer treatment during the warranty period continues to determine whether customers remain loyal to their dealer or seek alternatives in the aftermarket,” said John Harbicht, director of service/dealer satisfaction at J.D. Power and Associates. “With consumers becoming more time sensitive, particularly when waiting for maintenance work, they are seeking flexible appointment times or the ability to drop in for maintenance and oil changes. Aftermarket facilities are often better suited for this type of work.”

The study finds that the large majority (79 percent) of service work performed by aftermarket service facilities is routine maintenance and oil changes. Dealerships perform a higher share of more difficult repair work, with 56 percent maintenance and 44 percent repair work. While independent garages (service and repair facilities not affiliated with national and regional chains) do more repair work than do other non-dealer shops, routine maintenance comprises 65 percent of their business.

“Because owners are reporting fewer major repair problems with their vehicles, dealerships and aftermarket facilities are vying for this relatively easier maintenance business in an increasingly competitive market,” said Harbicht. “Aftermarket locations often have an advantage by providing the quick, easy service desired by customers.”

The study finds that luxury-vehicle owners are far more loyal to dealers than are non-luxury customers. Approximately 70 percent of luxury vehicles are serviced at dealerships.

Lexus ranks highest in service satisfaction among post-warranty customers for the third consecutive year, followed by Infiniti. Both makes demonstrate strong performance with uncomplicated appointment processes, “hands-on” service advisors, honest and courteous customer treatment and quick, knowledgeable responses to service requests and questions.

Shell ranks highest among major aftermarket service facilities, with customers particularly appreciating the ease into and out of service as well as the treatment provided by the service advisor. Independent facilities, as a whole, also tend to receive high ratings from their customers, due mainly to the direct interaction with service operators/technicians and the speed of service.

The 2002 Service Retention and Usage Study, based on responses from more than 30,000 owners of 1998 model-year vehicles, is designed to provide automotive service organizations with valuable, relevant information to assist them in improving customer satisfaction. The study is now in its sixth year.