The auto repair industry has been one of the most attractive investment sectors for a long time. However, its glory is slowly fading away as new technology brings in more hacks for car owners. Here are some challenges facing the industry in 2021.
The production of modern vehicles due to new technology has affected the auto repair industry. People use modern cars and SUVs for years and miles without repairs such as oil and oil filters. In the early days, people used to visit auto-repair shops for these specific issues regularly. The vehicles have synthetic engine oil designed to last longer before they need any maintenance.
Car dealers continue to bring more challenges to the industry. New vehicles come with years of warranty where sellers offer to repair the car for a certain period. Therefore, the number of car owners needing repair continues to decrease. The number will decrease in 2021 as new technology continues to emerge.
The New Way of Getting Vehicles
The vehicle leasing industry is slowly taking over the auto repair industry. Car leasing has increased from one million to 4.5 million in the last few years. People have found that it’s less expensive to lease a car than to buy one.
People are more attracted to the leasing industry due to their offers. You do not have to worry about car maintenance after leasing as long as you return it in the right conditions. The sector will service and maintain their vehicle. Besides, they may cover the car’s minimal damage you may have caused during your road trip.
The new technology means fewer jobs for the auto repair industry. With this new sector, few people will take their car for maintenance and repair. Furthermore, the current economic situation makes it hard for people to buy new vehicles, thus opting for leased vehicles. The trend will continue affecting the industry unless they team up with leasing companies.
No More Auto Part Replacement
The reduced demand for auto parts replacement will continue to affect the industry in 2021. Advanced technology in car making makes it harder for car owners to repair their vehicles in auto repair shops. Car owners have to get the manufacturers’ parts, while other cars have stable features that do not need repair.
Many investors have pulled out of the business as a result. Shares in big auto parts stores such as O’Reilly automotive have decreased by 20 % as investors fear that the industry will soon become obsolete. Experts have confirmed their worry. They suggest that the industry’s value decreases in 2021 and years to come as manufacturers continue to produce cars with complicated and durable parts requiring less maintenance and repair.
Retired Shop Tech
The auto repair industry has fewer trained people to handle modern vehicles. The primary cause of the shortage is that many tech shops have retired over the years. Their vacancies remain unoccupied since the industry has less trained. The auto care association has formed a job board to help the industry address the shortage of technicians in 2021.
Automobile tech stopped becoming a dream job for many. People used to flock to the automobile industry immediately after manufacturing the first bunch of vehicles since there were many jobs. However, more advanced technologies opened doors to work in other sectors. Within the years, people who trained in automobiles retired, but no new trainees joined the industry.
Preference for Car Dealers
Car owners have much more faith in car dealers than auto repair technicians. Most vehicles are costly, and car owners are unwilling to risk them to the auto repair industry. There is an increasingly low quality of services in this industry due to the increased number of untrained techs. As a result, car owners would rather pay a higher price to take their cars to car dealers’ shops than to allow the local technicians to interfere with their classy vehicles. The trend is also a result of the emergence of the car leasing industry.
These are the challenges faced by mobile auto repairs in 2021. The emergence of car leasing, few techs, quality vehicles, and less need for auto spare parts may bring industry problems.