BANDON, Ore. -

CNW Research acknowledged that hanging onto service business has become tougher for franchised dealers because of outside competitors like tire and quick-lube shops.

But CNW president Art Spinella believes dealers have held their own in recent years by offering name-brand tires, special oil change and lube coupons and “drop in” lanes where technicians are paid either a flat rate per vehicle or a smaller per-hour wage.

“The motivation for striking back at TBA operations can be largely traced to the explosion of in-car computers. A growing number of techs have hands on laptops rather than wrenches,” Spinella explained.

What’s a loyal service customer worth?

CNW suggested that better than half return to the same dealer for their next new or used car.

“The surge in using dealer service departments during the middle-to-late 1990s was rooted in the high percentage of leases,” Spinella highlighted. “Because of excess wear clauses in lease contracts, many lessees played it safe and had regular maintenance done at the leasing dealership.”

Combining ‘All’ and ‘Some’

According to CNW’s analysis, combining vehicle owners who have service done at a dealership “all the time” with individuals who report doing so “some of the time,” it’s clear that dealer service departments have been hanging onto a sizeable share of customers since 2005.

“And it’s likely buyers of new electronic-ladened models will find few shops outside of the selling dealership capable of handling glitches in displays, multi-function software or a berserk module,” Spinella projected.

“The downside of electronic glitches is that more than 40 percent of those who have suffered a mild to severe electronic malfunction say they will no longer buy from the same manufacturer or dealer,” he conceded. “That’s nearly twice the rate of abandonment seen historically when the issues were related to mechanical issues.”