Studies Show Consumers May Turn to Independent Repair Shops Before Dealership Service Centers
A couple studies released late last week focused on the service side of the dealership, with one online survey showing customers may need a bit more incentive to visit in-dealership repair shops over independent stores.
The AutoMD.com survey revealed that while consumers are generally satisfied with their dealership experience, they trust independent repair shops over dealerships for auto repairs by two to one.
Why?
According to the survey, better prices and mechanic relationships are the keys for independent repair shop preference, with 80 percent surveyed reporting they felt they had been overcharged for a repair at a dealership, and over 90 percent believing they can save at least 10 percent by visiting an independent shop.
And those that did prefer the dealership repair branch report choosing the dealership service center instead of an independent repair shop because their vehicle was under warranty/recall, the site shared.
"It is no secret that consumers are holding onto their vehicles for record lengths of time, meaning more and more visits to the repair shop or dealer service center," said Brian Hafer, vice president of marketing for AutoMD.com.
"We conducted this snapshot survey to provide a window into how today's car owners feel about their repair shop/dealership service center options, and found that price and relationships are making consumers push the independent trigger — unless their vehicle is under a dealership warranty," he continued.
"But, with so many aging cars now falling outside the warranty, this survey indicates that consumers are going to compare repair quotes — and then go where they believe the price is right."
Highlighting a few key findings from the study, 67 percent of respondents said that they trust an independent repair shop more than a dealership to repair their vehicle.
When asked why they preferred the independent repair shop, the top two reasons were: 1) a relationship with their local mechanic (40 percent) and 2) better pricing (at nearly 30 percent).
But there was some good news for dealerships.
Looking into some more positive numbers, 47 percent of those who utilize dealership service centers said they were either satisfied or very satisfied with their experience, with 23 percent feeling neutral.
Auto Insurance Claims Satisfaction Increases
Also reported last last week, a recent study from J.D. Power and Associates highlighted that as repairable and total loss claims are being paid faster, overall claimant satisfaction with the auto insurance claims process increases in the fourth quarter of 2012, compared with the fourth quarter of 2011.
This is according to the J.D. Power's 2013 U.S. Auto Claims Satisfaction Study — Wave 1 released Friday, which measures claimant satisfaction with the claims experience for auto physical damage loss.
Overall, claimant satisfaction with the auto claims process in the fourth quarter of 2012 has increased by six points to 861 (on a 1,000-point scale) from the fourth quarter of 2011.
J.D. Power attributes this climb primarily to an 11-point increase in settlement satisfaction.
"Regardless of the claim type, the faster the claimant is paid and can move forward with a repair or to replace their vehicle, the more likely they are to be satisfied," said Jeremy Bowler, senior director of the insurance practice at J.D. Power.
"In addition, satisfaction with the claims professional is at an all-time high, indicating that the process is becoming smoother, with more frequent updates throughout contributing to a much more satisfying experience," he continued.
But it seems customers are not quite as happy about the repair process in dealerships and independent shops .
In fact, satisfaction with the repair process is 862, a decrease of two points from the fourth quarter of 2011.
"Contributing to lower satisfaction is a decline in the percentage of vehicles being fixed right the first time — 89 percent in the fourth quarter of 2012, compared with 91 percent in the fourth quarter of 2011," officials noted.
"While insurers have made significant progress in the past 12 months to improve the efficiency of the claims process, the repair providers have not kept pace," said Bowler. "Failure to repair a vehicle correctly is critical to the customer experience as average satisfaction scores tumble over one hundred points for those who had to bring their vehicle back for repeat repairs."
The 2013 U.S. Auto Claims Satisfaction Study — Wave 1 is based on responses from more than 3,000 auto insurance customers who settled a claim within the past 6 months.
Sarah Rubenoff can be reached at srubenoff@autoremarketing.com. Continue the conversation with Auto Remarketing on both LinkedIn and Twitter.