Auto Repairs on the Rise

The decline in new-vehicle sales during the recession is belatedly helping the auto repair and parts business as vehicles on the road are aging.

Carolina Tire & Auto experts say sales of auto repair parts and labor flattened or fell during the recession; while people bought fewer new cars, they also tended to neglect the ones they had. Doug Faulhaber, sales manager at the Carolina Tire & Auto in Pineville, N.C., recalls people coming in with brakes badly worn. "They were overdue," he said.

Now, with new-vehicle sales still well below pre-recession levels and the average vehicle on the road nationwide about a decade old, neglect is catching up with vehicle owners, says Jim Seidel, who tracks the market from the Indian Land office of XL Tire, Inc.

"For a lot of the routine maintenance that makes up the bulk of the products and services in the aftermarket, you've seen deferred maintenance taking place," Seidel said. "Now, people are circling back around, having made the decision to keep their cars a few more years."

Tom Beagan, Charlotte area manager for NAPA, said Tuesday at the Carolina Tire store that high gasoline prices have spurred sales of items that increase fuel efficiency, such as engine air cleaners. "Customers are more interested in their maintenance now," he said.

Ron Rossi, director of research for the Automotive Aftermarket Industry Association in Bethesda, Md., says industry revenues totaled about $210 billion in 2007, stayed flat in 2008 and fell in 2009 to about $207 billion. They rose to $215 billion last year and are forcast $224 billion for this year.

AutoZone, the repair and parts chain based in Memphis, reported May 24 that its earnings rose by 12 percent in its third fiscal quarter ended May 7, to $227.4 million — exceeding analysts estimates. AutoZone has more than 4,000 locations in 48 states, including 13 on Long Island, according to its website.

In April, Atlanta-based Genuine Parts said its first-quarter profits rose 26 percent from a year earlier, to $126 million. Genuine Parts is majority owner of the National Automotive Parts Association (NAPA), a trade group that distributes auto parts nationwide to about 6,000 stores.

As consumers continue to invest their money into their vehicles, they are very interested in what other people say about their auto repair business. Internet search engines and websites like Google and Angie's List allow consumers to post reviews of their experiences at businesses they patronize. Seidel believes that this is the holy grail as it pertains to acquiring new customers. "Our online reputation is second to none in Charlotte for auto repair facilities, which include all the car dealerships." Seidel noted. Carolina Tire & Auto has over 200 positive reviews online and are well on their way to 300 positive reviews. They appear to have discovered the way to work together with customers to help their reviews and business grow in auto repair and tires sales in Charlotte. According to Angie's List website, Carolina Tire & Auto had a perfect score with over 20 customer reviews and is an Angie's List "Super Service Award Winner".