Lexus rates highest among new-vehicle dealerships for customer satisfaction for repair or maintenance, while NAPA AUTOPRO is tops among aftermarket shops, according to a new Canadian survey by J.D. Power. Mercedes-Benz and GM (Chevrolet/Cadillac/Buick/GMC) dealerships rated second and third, respectively, behind Lexus. For aftermarket, those positions were held by Great Canadian Oil Change and Midas.
J.D. Power said that as more people return to their pre-pandemic levels of driving, there’s expected to be a strong rebound in the service industry for working on used vehicles between four and 12 years old. The industry is expected to generate $10.9 billion in 2022, up from $6.6 billion in 2021; and $10 billion in 2019.
While there will be more service visits adding to the total, much of the revenue increase is actually due to the price of repairs. The average cost per visit at a dealership rose from $332 in 2021 to $394 in 2022; while aftermarket shop visits went from $226 to $247 over the same period. Even with higher costs, overall visits to dealership service departments increased slightly, while the number of people taking their vehicles to aftermarket shops went down from last year. Dealerships accounted for 47 per cent of all service visits, and 58 per cent of industry revenue.
When asked if all the work was completed right the first time, 95 per cent of aftermarket customers said it was, but that’s down from 97 per cent in 2019. Dealerships were marginally worse, at 94 per cent of customers getting their work done correctly the first time, but that is unchanged from 2019.
The study found that whether it’s a dealership or aftermarket shop, customer loyalty depends on a positive prior experience, the location being convenient to them, and word-of-mouth recommendation from family and friends.
The J.D. Power Canada Customer Service Index study polled 8,605 vehicle owners about their warranty and non-warranty visits. Overall satisfaction is based on service quality, vehicle pick-up, the service facility, service initiation, and the service advisor.
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Shops are rated on a 1,000-point scale, and Lexus topped the list at 829 points. Other dealerships, in order, were Mercedes-Benz, GM, Mazda, Toyota, Kia, and then Volkswagen at the 799-point segment average. Those below the segment average, in order, were Honda, BMW, Ford/Lincoln, Nissan, Audi, Hyundai, Acura, Stellantis (Chrysler/Dodge/Jeep/Ram/Fiat), and finally Subaru at 780 points.
Among aftermarket service shops, NAPA AUTOPRO rated 868 points. It was followed in order by Great Canadian Oil Change, Midas, and Jiffy Lube at the 810-point average. Below the average were Costco, Kal Tire, Mr. Lube, and Canadian Tire at 764 points.
“In addition to driving more, some owners are catching up on repairs that were put on hold because of the pandemic, and others are hanging on to their vehicles longer due to inventory shortages and the high price of used cars,” said J.D. Ney, automotive practice lead at J.D. Power Canada. “While auto service shops are doing well, they are not immune to other pandemic-related effects, such as a tight labour market and the challenges of attracting and retaining technicians.”
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