Rising Gas Prices and the Automotive Repair Industry

9:24 am General Interest, Service Manager

Rising_Gas_Prices_DenLors

 The photo above was taken outside a bar in Tampa, Florida.  The business owner’s humorous statement attracts attention from possible patrons.

Has a slowing economy along with climbing gas prices affected auto repair shops for better or for worse?

As gas prices increase along with almost everything else, most people will inevitably be keeping their cars longer and that means more vehicles with more repair needs.  But, does that mean automotive repair shops will have an influx of work to do?  That depends…

Shops rely on people to bring in their vehicles for oil changes where they hope to find additional auto repairs that will help them turn a profit.  However, with tougher economic times encroaching, many people who would normally bring their vehicle in for a simple oil change will be choosing instead to change the oil themselves and save a few dollars.  People will be more willing to drive their vehicle without air conditioning or take the rise of not getting extensive brake work as long as the vehicle “stops”.  Bare minimum crucial fixes combined with a hope-for-the best mentality will keep many repair shop’s profits down.

On the flip side, because more people are driving older vehicles, many are making repair purchases with more of a preventative mentality by keeping their car in good working order so it will “last”.  So although there might be less work to be had, the shop owner who is able to offer competitive pricing along with having an honest reputation will most likely be the one who drives more people into their shop.

2 Responses
  1. Josh Maxwell :

    Date: June 22, 2008 @ 9:31 am

    I just stopped by your blog and thought I would say hello. I like your site design. Looking forward to reading more down the road…These gas prices are really getting out of hand. Fuel costs are affecting the price of everything, not just in the automotive repair industry.

  2. dennisb :

    Date: June 22, 2008 @ 3:53 pm

    Josh, Thanks. You are right the price of fuel is not only going to change how Americans commute but will affect every aspect of our life due to increases in all of our products. I expect many auto repair shops along with everyone else will be using the Internet even more in the future to shop for auto tools and other products.

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