Higher Profit Margins For Car Repair Businesses
With the sluggish economy Americans are keeping their cars on the road than longer before. The average of a vehicle on U.S roads is now 10 years. As a result, owners have no choice but to get their vehicles repaired and serviced more often. As a result the auto repair industry has experienced a 7% increase in sales from January to December of 2014.
Profits margin have increased significantly as well; the average net profit increased more than 5% in 2014 which is significantly higher than in preceding years. What this means for auto repair shops is higher dividends and more profits to reinvest back into new technology, services, products and skilled technicians. Individuals who do not currently own a car are also likely to purchase one in the future which means even more business. The U.S Census Bureau has reported more sales activity to the tune of 11% in 2014.
We spoke with Carlsbad Collision in regards to how consumers can keep their vehicles running longer without major issues. Regular services such as oil changes and spark plug changes are required in order to get the vehicle running. Fixing small problems once they arise can prevent costlier repairs down the line. Refer to your vehicle owner’s manual in order to find the recommended time intervals for repairs and services.