It would seem like now is the perfect time to own a shop that works on cars. Vehicles on the road have never been older, but “older” in this sense means a car that was built in the early 2010s. These are cars that often require more specialized knowledge to repair than even my early-2000s car needs.
You won’t be surprised to hear that service is the biggest chunk of revenue a dealer is likely to earn, but the actual amount some dealers are seeing may surprise you. The Morning Dump is thinking about dealerships today, as the big National Auto Dealers Association annual conference is about to start.
Right now, you wouldn’t want to necessarily be a Volkswagen dealer, as that brand has been in rough shape. Could a name change for an existing model help? Maybe VW, as a brand, could learn from Renault, which has continued to find ways to grow in a challenging environment.
The most challenging environment in the automotive world might be Le Mans, and this year’s Goodwood events will have three of the most famous cars.
85% To 90% Of Revenue At Stake
Last week, I talked about how direct sales were a threat to dealers. This week, I want to talk about service. If there’s a commonality between both, it’s that dealers have long had a huge advantage that’s slipping away due to both consumer preference and technology.
There’s a piece from Automotive News talking about the importance of dealer service centers:
Service departments can generate between 85 and 90 percent of revenue for a majority of dealerships, Rick Wegley, an instructor and consultant at NCM Associates of Kansas City, Mo., told Automotive News.
“There is not a department in any dealership in America more important than the service department,” said Tom McCollum, chairman of the Audi National Dealer Council and CEO of Forbes Todd Automotive Group.
For most brands, margins on new cars are slim, and used cars represent yet another challenge. Service centers aren’t necessarily a slam dunk, though. There’s the ongoing technician shortage, and parts are getting more expensive, plus less foot traffic to stores means fewer chances to grab customers.
The older the car, the more cautious the owner, said Alan Dibre, chairman of the Acura National Dealer Advisory Board and dealer principal of Acura dealerships in New York and New Jersey.
“Customers are very cautious in terms of what their spending is,” he said. “You’re seeing less traffic.”
There are lots of concerns being voiced here, but this can still be a profitable business, as Car Dealer Guy reported last year:
According to Reynolds and Reynolds’ recently released Fixed Operations Golden Metrics, profit per repair order jumped for dealers in nearly all markets with some variation depending on volume levels.
- As of May, major urban stores averaged $414 per customer pay repair order (RO), up $33 year-over-year.
- Metro stores rose $23 to $349 in total, and community-based stores accrued $268—adding $9.
- Rural location gained $2 and averaged $225 per RO.
As always, there’s an upper limit to what someone with a 2014 Nissan Rogue is going to want (or be able) to pay for repairs. There’s also an issue of convenience. Bringing your car to a dealer to be told that it can’t easily be fixed now, and that the fix will be expensive, is a terrible outcome.
One growing solution is mobile service and more technology to reduce errors/labor needs, which automakers like Ford are pushing with its dealers. Here’s Bozard Ford explaining how it works:
Our strategy mirrors a hospital system’s model, that utilizes urgent care centers to manage less severe cases. Similarly, our mobile vans, equipped with Wi-Fi, handle minor issues like computer downloads or quick fixes directly at the customer’s location. This prevents these simpler tasks from occupying valuable bay space in our main service center.
This strategic division allows our primary service center to focus on its core strengths: major repairs like transmissions and engines, and supporting our used car and accessories departments. It’s an efficient approach that maximizes profitability. While our Quick Lane provides fast maintenance, mobile service extends this efficiency by taking an even broader range of services out of the shop, significantly boosting our overall capacity.
Perhaps it’s because I have an old BMW, but I’d be hesitant to take my car to a BMW dealer out of fear of what they’d tell me. I’m not sure yet what I’m going to do with my Honda as it ages out of its warranty.
VW ID.4 To Become The ID.Tiguan?
Volkswagen’s naming convention for its EVs is kinda terrible, right? The ID.Buzz, the ID.4, the ID.7. Whatever. Maybe you like it, but it’s such a shame when the brand has such fun names as Beetle, Tiguan, and Polo.
Oh, hey, speaking of Tiguan and Polo, VW already announced it’ll use the name Polo for its ID.2-sized subcompact, and there’s maybe a name change coming, according to CarExpert:
It’s expected the ID. Tiguan will follow suit with a redesigned cabin where the much maligned capacitive buttons and sliders will be binned. Like the ID. Polo, the ID. Tiguan should also feature the company’s latest touchscreen infotainment system with faster response times and an improved interface.
Under the skin, the rechristened ID. Tiguan will use a heavily updated version of the MEB architecture. Cheaper lithium iron phosphate (LFP) battery technology is likely to be adopted for some variants, with nickel manganese cobalt (NMC) lithium-ion batteries to continue in longer-range versions.
So ID.4 becomes the ID.Tiguan. It’s not clear if this will happen in the United States, but it makes sense. [Ed Note: ID.Tiguan is not a great name. Just call it Tiguan EV and be done with it. -DT].
Renault’s Five-Year Plan Is Working
Renault is the most interesting European automaker right now, and while my focus has been on the clever EVs they’re building, the long-term plan from the company was to shift from dependence on China and Europe towards emerging markets.
This plan goes back a few years to after the pandemic, and according to S&P Global, it’s working:
Among the expected outcomes of this plan is the launch of eight new products by 2027. Several have already been launched and have contributed to the sales uplift in 2025. A key product has been the Renault Kardian, a compact crossover that is based on the automaker’s long-standing CMF-B architecture. Renault highlighted the model’s contribution to the growth it saw in Latin America and a 44.8% y/y uplift in Morocco.
Another product contributing to this improvement is the Renault Grand Koleos. Built in South Korea and born out of the relationship between the French automaker and China’s Geely—from which this model sources the GEA—the midsize crossover helped boost Renault’s sales in South Korea by 55.9% y/y in 2025.
Overall, this has meant that sales in Renault’s international market represented a 30.5% share of its worldwide sales, up from 28.6% in 2024.
The whole world wants cars, but the whole world isn’t going to be buying electric cars yet. Being able to build cars for the EU market and emerging markets isn’t a giant business, but it ain’t a small one, either.
Goodwood Is Getting The Le Mans 1-2-3 Ford GTs
I don’t know if I’m going to Goodwood this year, but there’s at least one more reason why I’d consider it: The 1-2-3 finishing Le Mans Ford GTs from the 1966 24 Hours of Le Mans will be there.
For the first time in a decade, the three Ford GT Mk IIs driven by Bruce McLaren and Chris Amon, Ken Miles and Denny Hulme, and Ronnie Bucknum and Dick Hutcherson will not only appear together, but also run.
These legendary cars – chassis P/1046, P/1015, and P/1016 – will take to the Goodwood Hill during the Festival of Speed as the event celebrates some of motorsport’s greatest showdowns with the theme ‘The Rivals – Epic Racing Duels’. Entirely apt, as 2026 marks the 60th anniversary of the intense battle between the combined forces of Ford Motor Company and Carroll Shelby’s Shelby American, and Ferrari.
In September, the trio will reunite once more at Goodwood Revival, where they will run on the historic Motor Circuit, offering fans a rare chance to witness these icons in action.
Sweet.
What I’m Listening To While Writing TMD
I just learned that the opening orchestral sound from Portishead’s “Mysterons” is from a British TV show called Captain Scarlet and the Mysterons. There is just so much incredible and weird puppet-based TV from the ’60s I never knew existed (I learned this from Bandsplain, FYI).
The Big Question
Who was the last person to fix one of your cars?
Top photo: Ford
Me. A quick oil change on one of the cars the other day in 20 degree F weather; the forecast for that night was -15F, I’d piled on 5k miles on that car in five weeks, and had a 600-mile trip a few days later. The rest of elective car work is on hold till it warms up a bit, i.e., a few days with temps above freezing.
Last time one of the cars went to a shop for work was a year ago. The oldest Saab in the fleet needed exhaust manifold studs… again, as they eventually fatigue and break off in the head (this time around, at about 370k miles). While I have most of the tools and have done this miserable job before, I didn’t have the time or patience. Took two months to get onto the schedule at the Saab shop three hours’ away, let them take their sweet time, and picked the car up a month later. They’re busy, and just having it sit there covered winter storage for a month, versus having it take garage or driveway space at home. 🙂
The last “real” repair I did myself – shocks and struts on the F-150. Cost about a third of what the dealer quoted me.
Last quasi-repair was for the fifteen year old Fit. One of the tires kept losing air, but no matter how far it was driven after re-inflation, the TPMS light wouldn’t go out. Took it to the dealership, and they told me one of the pressure sensors was the source of the leak and one was bad, but they were all old and ought to be replaced, to the tune of about $1,500.
Considering that’s probably closing in on half the value of the vehicle, we passed.
A couple of months later, the tire goes completely flat while driving and destroyed the sidewall. Decided to replace all 4 tires at a local tire shop. They also replaced all four sensors, for a grand total of about $800 including taxes, tire disposal fees, etc.
And the dealerships wonder why people don’t like them.
OUCH!!
If your DIY capable it’s worth looking into replacing those sensors on your own. They run about $60/set on Amazon (for my car anyway), and according to YouTube its possible to replace them using a tire jack, a couple of blocks of wood, some rope and the weight of your car. If you’re careful to match the weights of the old and new sensors you might not even need to rebalance the tire.
If I had a better garage/shop situation or better weather, I’d have gone this route. We’ve blown way past subfreezing and into subzero, so we’re at the point where I’m willing to open the wallet. 🙂
When the sensors go I don’t replace the, I just ignore the idiot light. I check the tire pressures visually when I get into the car and physically once a week with a tire gauge.
Ignoring the idiot light is what resulted in the tire getting destroyed.
My daughter was driving it at the time, and probably didn’t do an adequate visual check because of the bitterly cold temps. She was smart enough to pull over before the alloy wheel got destroyed though, so I give her props for that.
The last person to fix my cars was myself. It’s not just because of the money I save, I like learning a bit along the way. I also don’t have to worry about scheduling an appointment, getting my car to and from a shop that is likely only open during the hours I should be working, finding a ride from the shop once I have my car dropped off, and hoping that the work was done throughly and correctly. I can take my car back to my shop, work on it at my leisure, drive one of my other vehicles in the mean time, and have an understanding of how everything goes together.
I want to drive a Grand Koleos. I have no idea what it is, its quality or lack thereof, if it meets my needs, its price or if it’s available in Depressing Gray color. I just want to tell people I drive a Grand Koleos.
In warranty, I go to the dealer for everything including oil changes. Out of warranty, no.
If it’s any relation to Ambassador Kollos, better wear those special safety glasses!
Sounds like they just admitted that the entire front of the house is just unneeded bloat.
As a career tech, I do all my own work and I’m horribly out of touch with labour costs for jobs.
Unless I need specialized equipment like an alignment rack or tire mounting/balancing, it all happens in my garage.
Finally, I feel VW needs to get get away from the Clinical names and inject some fun.
“The new, all electric, ID.GUANA“
More like ID.GUANO.
“You’ll go BATTY for our new model!”
Just as long as it’s not the ID.10t
You’d be one if you DIDN’T buy one!
I have a Mazda that came from the factory with non adjustable rear camber. Unfortunately it’s notorious for chewing tires, sometimes within the span of an oil change.
I lived with it for a few years till I hit the worst pothole I’ve ever seen. It took out two tires, rims, and shocks. I filed a claim with the city and they offered to pay!* So I took the opportunity to address the tire chewing by swapping the fixed upper control arms for adjustable ones out of a Ford Focus.
Of course the car also needed a full four wheel alignment so as an experiment I did all four wheels myself with a level, a laser pointer and a plumb. When I took the car in for its new tires a week later I was told everything was – to use a phrase – dead on balls accurate.
Give that a try and perhaps you can go into the shop for one less thing.
*FWIW when I spoke to the adjustor about my claim I was told they were happy to pay because thanks to my DIY my claim was VERY reasonable compared to most.
Dealer services are for warranty/recall work only.
Last weekend, I took my partners Honda Pilot to the stealership for recall work. A new backup camera cable, fuel pump, and fuel injector service cost me $0.00.
When I took my 2001 BMW e46 to the dealer to do the Takata airbag recall, they suggested like $6000 in repairs. On my $2000 beater. And that $6k didn’t even come close to fixing all the things wrong with that car.
this is where the majority of dealers make their money on the warranty/recall work. If direct sales are a think the manufacturer will likely do the servicing as well.
I prefer local independent shops.
When I must use a dealer…I challenge every invoice line.
This started when my local Audi dealer charged me $400 for a simple oil change. When I dug into it, they replaced the gasket for the oil filter housing (joint between the oil filter housing and engine block)…and claimed that it was required. Since the car was under warranty, I challenged that if this part needs replacing, Audi needs to cover. Alas, they said I was wrong.
The internet is a weapon.
Audi service manual for the oil change DID NOT require replacement of this part. Furthermore, when I searched online for the part cost…the Dealer’s own parts department charged 50% less for each part they used.
I put this together in a package and chased down the dealer GM. He begrudgingly refunded my money…but never ONCE apologized.
So, its no surprise that the service departments are a major source of dealer profits and also reinforced my poor opinion of dealerships in general.
“85% To 90% Of Revenue At Stake”
Which is exactly why dealerships are so reluctant to sell EVs, with their lower maintenance needs/costs.
Even folks doing maintenance themselves or using independent shops: Most of the parts used are still coming thru dealer channels.
Last service I took it to the dealer.
Because taking it to the independent shop who still got parts from the dealer wasn’t saving me much money on my 17 year old car. Especially when it came to being recommended new brake pads and discs two years ago, when there’s not been a need since (state inspection in Nov by the dealer confirmed no need) – plus the Uber rides back and forth and being stranded at home unable to make client appts vs free dealer loaners and the ability to continue business in a brand-new Mercedes-Benz.
I do 99% of my own mechanical work. Pretty much only go to a shop for work I can’t do myself, like changing tires.
The last person was myself. I only take the car into the shop for work I cannot do myself due to tools or equipment that only the dealer has.
Check out Supercar, Fireball XL5, UFO, Stingray, Thunderbirds, Joe 90 and Space 1999. The series were a staple of my yout viewing.
For a musical link to UFO the Starbase commander played by Gabrielle Drake is the sister of Nick Drake.
Check his catalog out for some great music.
I’ve used a local shop for a long time for the larger repairs I can’t do myself. The owner just retired, but most of the mechanics are still there, with one of them now the owner, so I’ll stick with them. All of my cars and trucks are older, and I’ve never been to a dealership, except for specific parts I needed.
I go a shop that has one guy to give me an estimate, one guy to take my keys, one guy to do the work, one guy to text me that the car is done, one guy to take my money, one guy to give me my keys.
Yes, they are all the same guy.
My cars are older Toyota products, so not difficult for him to work on. There is a Toyota dealer down the road for OEM parts if needed, and he gets them. I don’t go to the dealer, because I want to talk to the person who works on my car, and there are three people between him and me. The person at the front tells me I need this and that, but they were simply told to tell me that, and they haven’t even looked at my car. They have the smiling face that gets me to agree to do work that may or may not be needed.
Have I plugged Taylor Automotive in Chesapeake lately? Because I love them. My Olds passed VA State Inspection with no issues and they also passed my Miata and did rear brakes for me. I’ve been “part of the family” there for a couple of decades and they do everything properly. It’s a 20 minute drive to get there. Totally worth it for someone I trust with my 1968 Olds.
If you think about it, it would seem that all OEMs have to do is wait it out until Dealers decide they dont want to sell as middlemen…
I had the oil changed in my truck at the local dealership. The showroom is pretty empty so there are plenty of empty desks to work while waiting.
Most recent repair was done by the dealer.
All fluids except oil (transmission, transaxle, differential and brake) for $600.
Also found problem with the fuel injectors and that replacement was covered by the manufacturer extended powertrain warranty.
Needed tires and they quoted $1600 plus installation. Got a set of Michelin’s from Sam’s Club for $900 and have free rotation and balance for the life of the tires.
I was the last to work on my car.
Sounds like VW bought lot of extra chrome Is and Ds.
Captain Scarlet
He’s the one who knows the Mysteron game
And things they plan
Captain Scarlet
To his Martian foes a dangerous name
A Superman
They crash him, and his body may burn
They smash him, but they know he’ll return to live again
Captain Scarlet
As the Angels are flying wing to wing
Into the scene
Spectrum is green
Captain Scarlet
Though the Mysterons plan to conquer the Earth
This indestructable man will show what he’s worth
Captain Scarlet
Indestructable Captain Scarlet
I distantly remember this show. I remember the maincharacter’s head/face, sort of, and the how the song goes CAP-TAIN-SCAR-LET. And the spooky voice “this is the voice of the mystereons,” provavly with heavy reverb, that would come out of nowhere, and the camera would pan around like the characters are trying to to find where it’s coming from.
All of which could be inaccurate, but that’s what happens when the memory of a fourish-year-old gets accessed decades later.
That’s it. Captain Scarlet was a later Supermarionation show from Gerry and Sylvia Anderson (Fireball XL 5, Stingray, Thunderbirds, Joe 90, etc.). The marionettes appeared more realistic than previous shows characters because microelectronics located in the chest (instead of the head) controlled the eyes, mouth and head movements which allowed the heads to be smaller, in scale with the bodies.
Captain Scarlet was a member of Spectrum, an Earth defense force that featured an airborne Cloudbase with an all female fighter squadron (Angels) as well as extensive ground equipment. Scarlet was killed on a mission to Mars and resurrected by the Mysterons to be an infiltrator, but he escaped their influence. The treatment rendered him basically immortal, like Mysterons themselves. Captain Black, also converted by the Mysterons, became Captain Scarlet’s Mysteron controlled nemesis. Fun show.
High margins on service because they don’t pay the actual workers shit and overcharge the hell out of the customers, hence the shortages of both.
I worked on my car last. There’s an open recall for a rapid blinking tail light that can happen if the sunlight hits them just right at a low angle, but they won’t just hand me the parts to do this 10-minute job myself and I don’t feel like driving 1/2 hour to wait in the sitting room for hours wondering if the one guy who claims he can drive a manual will eat 100k miles off my clutch pulling it in only for the actual work to take 10 minutes, then drive another 1/2 hour home, so I live with the 3 times a year it flashes and the annoying weekly calls informing me of this bullshit “safety” issue. Anyone convinced it’s a genuine safety issue has had it far too easy.
I grew up in a household with multiple people working in the back of the house at a dealership. It has always been the case that the service side carries the sales side, and sales are really just there to make new customer relationships. But it seems like now the actual relationships don’t matter anymore.
But the service experience seems to be declining for decades now. My last out-of-warranty dealer visit was for a somewhat complex BMW repair. They took literal months to complete the job and ultimately botched it leading to a different broken part due to high wear a couple months later. That drove me to an independent shop that gives a way better experience (I really don’t car that they don’t have a latte machine) and exudes more confidence, and 0 screw ups so far. They also explained exactly how the dealership screwed up my previous repair, and why they have a different procedure for the same fix.
Throw on top that I of course received an automated survey from BMW for the dealer fix that I answered honestly, and subsequently received a tirade from the service manager, and that closed the books on any non-warranty dealer service ever again. Even when it seems like you want to go to the dealer for more knowledge, by the time the warranty is up, it seems like they are actually at a disadvantage.
My parents kept going to the dealership for oil changes and even tires after their ToyotaCare ended on their 4Runner. They were getting frustrated at long waits for service they scheduled well in advance, but the real kicker was when changing the tires took hours longer than expected and the reason they were given is that they were heavy tires. My dad has a log truck and the tire guy can come out and sell him more tires, all of which are heavier, and get them all mounted in the driveway in half the time it took them to do the change. They’re back to home oil changes and buying tires at tire shops.
My Kia warranty work soured me on both Kia and Dennis Dillon dealership service departments. I had a solenoid clicking sound coming from my charging port. Over the course of a few months, they had me in there several times so that they could break the charging port door in 2-3 different ways (wouldn’t close, wouldn’t open, and they replaced the whole door because I think they cracked it) and only give me a loaner after I called them out on all the ways they had screwed up over the course of the repairs.
The last time I went to pick my car up from the dealer, I had to wait ten minutes for them to find the one guy who could drive a standard so they could bring it to me.
Similar story. When I bought my Scion (in 2013) I had to wait for the car wash kid to pull it around because no one in sales new how to drive stick. It’s an epidemic.
I purchased two new Scions. I wonder how many people can say that.
Having been disappointed by the service of every Lotus specialist within reasonable range I’ve now found a garage I’m happy with.
The train ride back from dropping it off for its last service took 4 hours.
It’s a lesson I’ve learnt from my Triumph but it was only 1.5h instead of your 4h; I should have got a Honda.
I’ve got a nice sensible Toyota too. I can get that serviced anywhere.
Lots Of Trouble, Usually Serious.
There’s a reason it’s hard to find a good shop for them!
That’s a common mistake, it actually stands for “Loads Of Taped Up Shit”.
How long is the drive there?
An hour.
Public transport in the UK is only not terrible if you want to go to and from somewhere big.
I was the last person working on my cars. I honestly can’t remember the last time I had a shop do anything outside of an alignment. Even tires I do myself as I am lucky enough to have a friend who owns tire machines.
Whats funny about that citation from Reynolds and Reynolds is that it says PROFIT from every division of the market is up. In an article also describing how parts prices are up and they are tech short. So they are paying more, but still making sure they are charging enough to not only cover those increases, but net their own increases as well.
I bring it to a shop for alignment, tire balancing, engine machine work and AC.
Dealerships survive on the timid and the uninformed consumer. Customers with a small amount of gumption and knowledge will leverage the internet and their personal contacts to find local independent shops to do work for half the price.
I do take my cars into local dealerships for recall or warranty work, but the last three dealership visits have resulted in the following: A.) an etched windshield (some sort of caustic fluid must have splashed onto it during the service?) that they didn’t fix, B.) about five pounds of mystery gravel in the bed of my truck (what were they doing with gravel in my truck that was in for a wiring recall?), and C.) grease marks from dirty hands all over the car’s interior. Who wants to experience this sort of bad service on the regular, while paying far more for the pleasure?
I’m not buying the “fuzzy math” with which dealers claim they don’t make much when selling a new car. Sure, there may not be much profit in selling the car itself, but there are gobs of profits on all of the add-ons like paint protection, nitrogen tires, window tint, along with the shenanigans of the F&I office and the financing kickbacks and extended warranties. I’m not weeping for new-car profits.
Paid a shop to replace front wheel bearings on the daughter’s Prius. Probably pay my shop to replace the front stuts on the partner’s Corolla this spring. Rust belt suspension work is no joy without a lift and heavier air tools than I own.
For our daily-driven cars (both of which are less than 4 years old), we always take them to the dealerships as both cars came with included service for several years (from the OEM, not talking about a high-margin 3rd party dealership service package). None of the dealerships have ever given us a reason to take our business elsewhere, with service being quick, transparent, and the bigger dealerships have loaner cars, shuttles, mobile service, etc.
I took my old YJ to a small independent shop for the rear main seal and a transmission tune-up, and while they did a good job for a fair price, I had to take Ubers to drop it off / pick it up, there was no waiting room area, and it took an extra day. Not the end of the world as it’s not my daily, but dealers due have scaling advantages for perks like that.
I work on my DeLorean myself, as no shop in the area has ever seen one before, let alone understands K-Jet fuel injection…
Does that need much work? We had a few cars with K-Jet and we never had to touch it.
Well, mine had the original 44-year-old fuel lines, so yes, but I’m told it doesn’t need much maintenance once it’s sorted. Mine ran ok before I started replacing the old rubber parts, so it hasn’t needed anything tuning-wise. Apparently, that’s the part that can be a bear.