The Affordability Myth in Auto Repair: Rethinking How Service Advisors Present Repairs [THA 476]
About this episode
Exploring the so-called affordability crisis in auto repair, industry leaders Andy Fific and Chris Latender share insights from their multi-location shops, revealing that pushback on repair costs is often less severe than perceived. They emphasize the importance of repackaging repair options, building trust through relationships, and offering payment plans to ease customer concerns. The discussion also highlights challenges from manufacturer messaging about maintenance-free vehicles and stresses continuous education for service advisors to maintain empathy and effectiveness. Ultimately, the episode advocates for proactive communication and long-term maintenance planning to keep vehicles safe and customers satisfied.
"I think the push back is more in our head than it is in the pocketbook."
In this episode, host Carm Capriotto talks with Andy Fiffick and Chris Letendre about the perceived affordability crisis in auto repair. Both guests challenge the idea that customers can’t afford repairs, suggesting that price resistance often stems from the service advisor's mindset rather than customer reality.
The discussion highlights practical strategies for improving repair approvals, including repackaging repairs with different parts or warranty options, presenting financing as “payment option plans,” and avoiding the “Sophomore Jinx,” where advisors begin to pre-judge what customers can afford. They also address the “maintenance-free” myth promoted by automakers and encourage shops to proactively educate customers with long-term maintenance planning.
Ultimately, the episode reinforces a key truth: auto repair is a relationship business. When shops build trust and focus on helping people, price objections become far less common.
Andy Fiffick, CEO Rad Air, Listen to Andy’s other episodes HERE
Chris Letendre, American Pride Automotive
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"And we want to thank you so much NapaTrax, today's class kakui and pit crew loyalty. Hey, for over 30 years, NapaTrax has made selecting the right shop management system easy by offering the best, most comprehensive SMS in the industry. We'll prove to you that Trax is the single best shop management system in the business."
NapaTrax is a computer program that helps car repair shops keep track of their work and customers more easily.
NapaTrax is a shop management system (SMS) designed to help automotive repair shops manage their operations, including scheduling, invoicing, and customer communication.
shop management system
"Hey, for over 30 years, NapaTrax has made selecting the right shop management system easy by offering the best, most comprehensive SMS in the industry. We'll prove to you that Trax is the single best shop management system in the business."
A shop management system is a computer program that helps car repair shops keep everything organized, like appointments and bills.
A shop management system (SMS) is software used by automotive repair shops to organize and streamline their daily operations, including appointment scheduling, parts inventory, invoicing, and customer records.
Chevrolet Trax
"...ive SMS in the industry. We'll prove to you that Trax is the single best shop management system in the ..."
The Chevrolet Trax is a small SUV made by Chevrolet. It is designed to be easy to drive in cities and has space for passengers and cargo. People like it because it is not too big but still useful for everyday driving.
The Chevrolet Trax is a subcompact crossover SUV introduced by Chevrolet, known for its urban-friendly size and versatility. It offers a practical option for drivers seeking a small SUV with modern features and efficient performance, making it a popular choice in crowded city environments. The Trax is often discussed for its balance of affordability and functionality in the compact SUV segment.
service advisors
"owners, service advisors that listen are saying, wow, we haven't felt it. We're not sure."
Service advisors are the people you talk to when you take your car to get fixed. They listen to your problems and tell the mechanics what to do.
Service advisors are the professionals at automotive repair shops who communicate with customers, assess vehicle issues, and recommend repairs or maintenance. They act as the liaison between the customer and the technicians.
maintenance
"what a perfect time to talk about maintenance, getting that vehicle to last 250,000 miles."
Maintenance means taking care of your car regularly so it keeps working well and lasts a long time. This includes things like changing the oil and checking the tires.
Maintenance refers to the routine care and servicing of a vehicle to keep it running reliably and safely over time. This includes oil changes, tire rotations, brake inspections, and other scheduled tasks to prevent breakdowns and extend vehicle life.
value proposition
"If you sell the value proposition of the job and you do your job properly, we're getting no pushback."
Value proposition is how the repair shop explains why their work is worth the money, like telling you the good things about the repair so you feel okay paying for it.
The value proposition in auto repair refers to how the service advisor communicates the benefits and quality of the repair job to the customer, emphasizing why the price is justified.
coupon
"If you then re-explain the job, you offer any kind of value adjustment, i.e., offering a coupon,"
A coupon is like a special ticket that lets you pay less money for fixing your car.
A coupon in auto repair is a discount offer that reduces the price of a service or part, often used to make repairs more affordable or attractive to customers.
warranty
"offering a little bit less warranty. You know, our general warranty is a lifetime warranty on our repairs here. So you drop down to a two-year warranty using a little less quality part and you just do any kind of adjustment."
A warranty means the shop promises to fix your car again for free if something they repaired breaks within a certain time. It's like a safety net for your car repairs.
A warranty is a guarantee provided by a repair shop or manufacturer that covers certain repairs or parts for a specified period. It assures customers that if the repair fails within the warranty period, it will be fixed at no additional cost.
repackaging strategy
""...we're kind of in a locked step, I would say, Andy, as far as that repackaging strategy to taking the initial premium repair... Andy, I love what he said, repackaging. That's really, in my mind, just a smart way for a service advisor to think about any pushback...""
Repackaging means changing how repair options are explained to customers so they understand better and can afford the work, while still keeping the car safe to drive.
Repackaging strategy in auto repair refers to the approach service advisors use to present repair options to customers by breaking down or adjusting the repair scope, parts, or warranty to better fit the customer's needs and budget while ensuring safety and integrity.
white box part
""...sometimes it's switching from a premium part to a white box part...""
White box parts are cheaper car parts that are not made by the original car maker and might not last as long.
White box parts are generic aftermarket replacement parts that are typically less expensive than premium or OEM parts and may have variable quality and warranty coverage.
premium part
""...sometimes it's switching from a premium part to a white box part...""
Premium parts are better-quality car parts that often last longer and fit better but cost more than cheaper parts.
A premium part is a higher-quality replacement component for a vehicle, often OEM (Original Equipment Manufacturer) or better, which usually comes with a longer warranty and higher cost compared to aftermarket or generic parts.
payment options
"And you do have that view, and offering payment options is a big part of that, too. I cannot believe how many shops out there do not offer that option to their clients. And that is a game changer for those shops that are not doing it."
Payment options mean different ways you can pay for fixing your car, like paying a little at a time instead of all at once.
Payment options in automotive repair shops refer to the various ways customers can pay for services, including financing plans or installment payments, which help make costly repairs more affordable.
BMW
"And we didn't really tell them what vehicle to buy. Now, if you go out and buy a BMW and you're going to expect a repair at Chevrolet prices,"
BMW is a car company from Germany that makes fancy and well-built cars that often cost more to fix.
BMW is a German luxury automotive brand known for producing premium vehicles with advanced engineering and performance features.
timing chain
"If they would have done their maintenance, they might not be seeing us for that $2,000 timing chain job or other items that they ignored."
The timing chain is like a metal belt inside the engine that keeps parts moving together so the engine runs smoothly. If it breaks or wears out, the engine can have big problems.
A timing chain is a metal chain that synchronizes the rotation of the crankshaft and camshaft(s) in an internal combustion engine, ensuring valves open and close at the correct times during each cylinder's intake and exhaust strokes.
one and done
"The industry average is 54% one and done. We understand how discouraging that can be."
"One and done" means a customer comes to a shop one time and then never comes back. This makes it hard for shops to keep customers.
"One and done" refers to customers who visit a service shop only once and do not return, which is a challenge for many auto repair businesses trying to build a loyal customer base.
lifetime value
"Our clients cut that rate by up to 38%, raising lifetime value by more than 50%. Loyalty members visit nearly three times more often, creating predictable revenue without extra ad spend."
Lifetime value means how much money a customer will spend at a business over time. If customers come back more, the business makes more money from them.
Lifetime value refers to the total revenue a business can expect from a single customer over the entire duration of their relationship. Increasing lifetime value means customers return more often and spend more, which is crucial for sustainable business growth.
Carfax
"I think there was a statistic that came out from Carfax here in November that I think"
Carfax is a company that gives reports about a car's past, like if it was in accidents or had repairs. This helps people know more about a car before buying or fixing it.
Carfax is a company that provides vehicle history reports, including information on accidents, service records, and ownership history, helping buyers and owners make informed decisions about cars.
transmission flush
"something as simple as a transmission flush you know a 250-350 service may prevent you from a three to five thousand dollar transmission overhaul failure you know down the road."
A transmission flush means changing the fluid inside your car's transmission to keep it working well. Doing this can stop big problems later and save you money.
A transmission flush is a maintenance procedure that removes old transmission fluid and replaces it with new fluid to help keep the transmission system clean and functioning properly. It can prevent costly transmission failures and extend the life of the transmission.
transmission overhaul
"a 250-350 service may prevent you from a three to five thousand dollar transmission overhaul failure you know down the road."
A transmission overhaul means fixing or rebuilding the part of your car that helps it change gears. It costs a lot more than regular checkups or fluid changes.
A transmission overhaul is a major repair where the transmission is disassembled, inspected, and rebuilt or repaired to restore proper function. It is usually very expensive compared to regular maintenance like fluid changes or flushes.
return on investment
"that's very much money well spent. It's a ten to one return on investment and you know and you know if somebody gave you $250 and said go to Vegas put it on a table and I'll give you five thousand dollars back who would not take that bet."
Return on investment means getting more value back than what you spend. If you spend money fixing small problems early, you can avoid big, expensive repairs later.
Return on investment (ROI) in automotive maintenance refers to the value gained from spending money on preventive services compared to the cost of major repairs avoided. For example, spending $250 on maintenance to avoid a $5,000 repair is a high ROI.
dealer alternative
"we start seeing vehicles around the four-year mark you know we work as more of a dealer alternative we certainly don't market to really older vehicles"
Instead of going to the car brand's official service center, some people choose other repair shops that can fix their cars. These are called dealer alternatives.
A dealer alternative is an independent repair shop or service center that offers vehicle maintenance and repairs as an alternative to official brand dealerships. They often provide competitive pricing and quicker service.
oil change program
"maybe we got to figure that out we have an ultra nice oil change program we only give you half the oil the rest is an upcharge i'd love to see the point of sale on that"
An oil change program is when a shop offers to change your car's oil regularly if you pay them in advance or sign up, sometimes with different prices depending on the service.
An oil change program is a service plan offered by some shops or dealerships where customers pay upfront or subscribe for regular oil changes, sometimes with varying levels of service and pricing.
return client rate
"...a return client rate is roughly around 78 to 82 across their 11 stores you know so it's fairly high..."
Return client rate means how many customers come back to the same shop again because they like the service.
Return client rate is the percentage of customers who come back to a business for repeat service. In automotive repair, a high return client rate indicates customer satisfaction and trust.
oil changes
"...often neglected maintenance is oil changes and people are ignoring their oil changes left and right..."
An oil change means putting new oil in your car's engine so it runs smoothly and doesn't get damaged.
Oil changes involve replacing the engine oil and oil filter to ensure proper lubrication and cooling of engine components. Regular oil changes are critical for engine health and longevity.
tire pressure
"...I don't even check my oil or tire pressure unless the light comes on..."
Tire pressure is how much air is inside your car's tires. Keeping it right helps your car drive safely and saves gas.
Tire pressure is the amount of air inside a tire, which affects vehicle safety, fuel efficiency, and tire wear. Maintaining correct tire pressure is important for optimal driving performance.
Synchrony
"and that is the synchrony financing all right synchrony automotive financing everybody knows the name it's out there synchrony isn't just for people who don't have the 1800 or 2000 dollars to spend on their car repair"
Synchrony is a company that helps people pay for car repairs by letting them spread out the payments instead of paying all at once, sometimes without extra fees.
Synchrony is a financial services company that offers automotive financing programs, including options with 0% interest for a set period, allowing customers to pay for vehicle repairs or maintenance over time.
0% financing
"synchrony has some programs out there that offer 0% for 12 months you know I might have 5000 dollars in reserve to pay for repairs or maintenance or anything else"
0% financing means you can pay for something like car repairs over time without having to pay extra money as interest for a certain number of months.
0% financing is a payment option where customers can borrow money to pay for repairs or purchases without paying any interest for a specified period, making it easier to manage larger expenses.
payment option plans
"financing is uh we call them payment option plans you know try to stay away from that financing word but offering payment option plans your clients will open a big door"
Payment option plans let you pay for car repairs little by little instead of all at once, making it easier to afford bigger bills.
Payment option plans are financing arrangements offered by service providers that allow customers to pay for vehicle repairs or maintenance over time, often with flexible terms to improve affordability.
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