Inflation has driven up the cost of auto repair and maintenance in Canada — and is also driving up the age of the nation’s vehicles.

J.D. Power’s 2024 Canada Customer Service Index — Long-Term Study found the average cost of a visit to a dealership service department rose 7.6% from the previous year, from $432 to $465, and the average independent shop cost increased 4.2% to $273.

The study measured service usage and satisfaction among 8,750 owners of 4- to 12-year-old vehicles in May and June and analyzed the customer experience in warranty and non-warranty service visits.

J.D. Power said rising costs throughout the economy and higher interest rates are also pushing owners to keep aging vehicles longer. According to the study, repairs accounted for 40% of visits to dealerships and 24% of visits to aftermarket, up from 31% and 21% in 2021, which analysts said shows car owners are investing in fixing their vehicles rather than buying new ones.

“With inflation pushing auto repair costs upward and interest rates making larger-ticket items like mortgage payments and new-vehicle purchases more expensive, owners are being hit with a double whammy and have to make different decisions in order to balance their budgets,” J.D. Power Canada automotive practice lead J.D. Ney said in a news release.

“As more owners opt to fix their vehicle instead of buying a new one, auto repair shops have an opportunity to attract more lucrative business in this $13 billion market by excelling in the service factors that drive customer satisfaction — mainly saving time and convenience.”

Lexus dealerships earned the highest score for customer satisfaction in the dealership segment for the third consecutive year at 836 on a 1,000-point scale, followed by Mercedes-Benz at 818 and General Motors at 810.

Great Canadian Oil Change topped the list of aftermarket service facilities with a score of 838, ahead of Jiffy Lube (834) and Midas (813).

Satisfaction scores are based on five factors: service quality, vehicle pick-up, service facility, service initiation and service advisor.

Other study findings include:

  • Time and convenience are the main factors that affect customer satisfaction. Completing service within 90 minutes and fast paperwork and key pick-up are the two key performance indicators that increased the most year-over-year in importance as ranked by survey respondents.

 

  • Dealerships continue to hold nearly half (48%) of the auto service and repair service occasion market share, with independent shops at 27% and quick lube locations 11% — virtually unchanged from 2023. Dealerships again averaged 1.6 visits per year while aftermarket visits were up from 1.2 last year to 1.3 in 2024. Dealerships accounted for 61% of the auto service market’s total revenue, also unchanged from 2023.