Car Maintenance
More than 85% of all National Parts Inventory is less than 6 month old
The National Average during the last 3 months shows that 85% of all Dealer Parts Inventory is aged less than 6 months. On average, 7% of all Dealer Parts Inventory is aged between 7 – 12 months, 4% is aged 13 – 24 months and 4% is aged more than 25 months.
(Click graph to enlarge)
Parts Age by Category
(All Makes / All States / All Age Categories)
National Warranty Service Sales Mix on the decrease
The National Average for Warranty Service Sales Mix has been on the decrease, dropping from 19% in June to 15% in August. This also represents an associated increase in the National Average Retail Sales Mix from 49% in June to 55% in August. (Click graph to enlarge)
Service Sales Mix
(All Makes / All States / All Models)
Despite the National Average Warranty Service Sales Mix trend, the National Average for Holden has remained consistent at 19-20% over the last 12 months. (Click graph to enlarge)
Service Sales Mix
(Holden / All States / All Models)
Average Customer Labour Sales on the Increase
The National Average Labour Dollar spend per Customer Repair Order increased by over $12.00 in July, and has continued to increase in August.
Ford now has the highest Average Labour Dollar spend per Customer Repair Order of the top 5 selling makes, edging in front of Holden… Both are significantly higher than the National Average benchmark. Mazda’s increase in July was less than Hyundai’s, both are now just above the National Average. Toyota have consistently remained under the National Average, recording a decreasing trend over the last 12 months, and clearly have the lowest Average Labour Dollar spend per Customer Repair Order of the top 5 selling makes. Click to enlarge
Customer Labour Sales per Repair Order
(Ford / Holden / Hyundai / Mazda / Toyota)
Service Sales diminishing however some Brands are faring better than others
Average sales value per repair order continues to diminish, dropping by $66 or 17% over last 5 weeks trading.
 |
 |
 |
Upon investigation of the decline in average sales value, $43 of the reduction is in parts sales per repair order. Parts sold per repair order have dropped from $128 in March 2009 to $85 in early May 2009 trading being a 33% decline.
|
 |
|
Service Customer Retail Sales continue to decline in February and early March trading
A challenging trend continues in total customer retail service sales per repair order. A decrease of $15 per customer retail repair order from October 2008 through to February 2009 and a further reduction of $17 per customer retail repair order in early March 2009 trading.
|
|
|
|
|
The trend is more evident by vehicle brand, with Ford averaging $81 more per customer retail repair order than Toyota in February and early March 2009 trading. Holden has also seen a reduction, although of a lesser value of $20 per customer retail repair order since October 2008.
|
|
|
|
|
Repairing With New VS Old Parts
Car repair is never an easy or even affordable event to go through. More then likely that damaged car is the only source of transportation you have so this can be especially frustrating. You will be faced with many decisions as you strive to get your beloved car serviced and one of those will be using new parts or old parts.
While you may want to jump to the new and shiny equipment first, a comparison should really be made. Often times, going with something else will save you hundreds of dollars while providing the same, if not better performance. First, let us take a look at these “new parts”
Original Equipment Material or OEM is used far more often by mechanics instead of just saying new parts. OEM parts and equipment are not necessarily built by the company that constructed the car, but by the company that created the parts in that car. Many find OEMs preferable without giving any real thought to why. Often times, Aftermarket equipment will run far less then OEMs in price range and may even provide a higher quality product. Aftermarket materials are created by other companies and are still considered new.
On the other hand, “old” parts and material will be much more affordable then either OEMs or Aftermarkets but due to the stigma attached to these parts they are overlooked or rejected. These old parts are recycled or remanufactured from previously owned vehicles. These parts and materials are called Like Kind Quality, or LKQs. The LKQs will come from a vehicle that is the same year, model, and make as yours and have the same quality as OEMs. The only difference between this and other types are that LKQs are not new and have been previously used and restored. Since LKQs were previously owned and used there may be minor visual blemishes or differences.
How Does Servicing A Car Affect The Resale Value?
Resale value is a very important factor for many car owners. Many car owners do not plan to own just one vehicle throughout their entire lifetime. Often times, an owner will keep a car for a year or two, or until the car loan is paid off and then trade in that vehicle for something new. Resale values effect trade-ins as well as traditional sales.
Many factors affect the resale value. For one, the resale value of the car diminishes as soon as you drive it off the lot. This is unavoidable and owners will try to offset that loss by cosmetic improvements and changes. Another factor that may or may not be unavoidable is accidents.
The diminished value due to a car accident varies car to car all due to the damage incurred. There are several reasons why an accident diminishes the car’s value; the most obvious is the damage. Of course, if the owner does not repair the exterior and the interior damage of the vehicle it will not be nearly as much as it was once worth. However, should the owner have the car in for servicing they may be in for a shock.
After an accident, the car will loose considerable amount of its resale value. Even if the owner or the Insurance company pays for top of the line parts for the car repair. This is because future buyers will see that accident as a black mark and even though everything was repaired, they will still be very wary of it.
How Can You Ensure The Optimum Fuel Consumption?
While petrol prices are perfect for late night talk show fodder, the truth is that with prices continuing to rise sharply, drivers are looking for ways to reduce fuel consumption more so than in recent years. So how can motorists make certain that they are getting to that Shangri-la of driving, that optimum fuel consumption level? Common sense just may be the deciding factor.
For those looking to purchase a car, opt for one with the best kilometres per litre and not one that will virtually devour petrol as if it were salt water taffy. For those that already own a car and are not in the market for a new one, just use your head while driving.
The basic advice in achieving optimum fuel consumption is to drive only when necessary. However, if this seems unrealistic and just plain silly, there are plenty of other ways to save. Common maintenance and upkeep issues can reduce consumption such as replacing worn spark plugs, changing air filters, and keeping up with the oil are wonderful and relatively easy ways to help with the issue of fuel.
The way you drive affects how much fuel you use so make sure to drive smart and safe. Keep the acceleration at a constant speed and avoid unnecessary stop and go procedures. This does not mean run stop signs but just be mindful of the road up ahead. Keep the speed at which you go near the recommended speed limit. Going past the speed limit will result in wasted petrol and ruin other efforts of conserving fuel consumption.