Lexus and Great Canadian Oil Change Rank First in Their Respective Segments
TORONTO, September 05, 2024–(BUSINESS WIRE)–Owners of vehicles aged 4 to 12 years are feeling the impact of inflation in Canada as the cost of maintenance and repairs continues to rise, according to the JD Power 2024 Canada Customer Service Index—Long-Term (CSI-LT) Study,SM published today. The average cost of a dealership visit has increased from $432 a year ago to $465, while a similar visit to an independent garage has increased from $262 to $273.
Macroeconomic conditions and higher interest rates are not only affecting the cost of car maintenance and repair, but are also pushing owners to keep their aging vehicles longer. The study shows that 40% of visits to dealerships and 24% of visits to independent garages were for repairs. This is compared to 31% and 21%, respectively, in 2021, implying that owners are choosing to invest in repairing their vehicles rather than buying new ones.
“With inflation pushing up auto repair costs and interest rates making larger expenses like mortgage payments and new vehicle purchases more expensive, homeowners are facing a double whammy of making different decisions to balance their budgets,” says JD Ney, Automotive Practice Leader, JD Power Canada. “As more owners choose to repair their vehicles instead of buying a new one, auto repair shops have the opportunity to attract more lucrative business in this $13 billion market by excelling in the service factors that drive customer satisfaction, primarily by saving time and generating convenience.”
Read more
Here are some of the key findings from the 2024 study:
-
Convenience : Time savings and convenience are the top factors driving customer satisfaction in this year’s study. Service completion within 90 minutes and fast closing (paper and key handover) are the two key performance indicators (KPIs) that increased the most year over year in terms of importance in measuring overall satisfaction.
-
Unchanged market shares: Dealers still hold nearly half (48%) of the market share for automotive maintenance and repair services, with independent garages and quick lube sites accounting for 27% and 11% respectively. These market shares remain virtually unchanged from 2023. Average annual visits also remain stagnant year-over-year, with 1.6 visits per year in the dealer segment and 1.3 in the spare parts segment (compared to 1.2 in 2023).
-
Dealers take a bigger share of the revenue: With an average of $465 per visit, dealerships account for 61% of total automotive service market revenue, with the aftermarket segment capturing the remaining 39%. These proportions remain unchanged from 2023.
Study Rankings
THE Lexus dealers ranks first in the dealer segment for a third consecutive year, with a score of 836 (on a 1,000-point scale). Mercedes-Benz dealers finished in second place (818) and the GM dealers at the third position (810).
Great Canadian Oil Change (838) ranks first among after-sales service facilities. Jiffy Lube (834) finished second and Midas third (813).
See the segment ranking table at http://www.jdpower.com/pr-id/2024097.
The Canada Customer Service Index—Long-Term (CSI-LT) Study measures service usage and satisfaction among owners of vehicles aged 4 to 12 years old and analyzes the customer experience during both in-warranty and out-of-warranty service visits. Overall satisfaction is based on five factors (in order of importance): service quality (32%); pick-up service (20%); facilities (17%); hospitality (16%); and advice (15%). This year’s study is based on responses from 8,750 owners and was conducted in May and June 2024.
For more information about the Canada Customer Service Index—Long-Term (CSI-LT) Study, visit https://canada.jdpower.com/automotive/canada-customer-service-index-long-term-study.
About JD Power
J.D. Power is a global leader in consumer insights, consulting services, and data and analytics. A pioneer in using big data, artificial intelligence (AI), and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence into how consumers interact with brands and products for more than 50 years. The world’s leading companies across major industries rely on JD Power to guide their strategies to improve the customer experience.
JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit https://canada.jdpower.com/.
About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info
The text of the press release resulting from a translation should in no way be considered official. The only version of the press release that is authoritative is that of the press release in its original language. The translation must always be compared with the source text, which will constitute precedent.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240905883021/fr/
Contacts
Media Relations
Gal Wilder, NATIONAL Public Relations, Toronto ; 416-602-4092, [email protected]
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
Related News :