The category known as the aftermarket sweet spot is seeing a major rebound this year — but will it last?
An argument can be made that the jump in sales from $6.6 billion in 2021 to $10.9 billion in 2022 in the four- to 12-year-old vehicle category could be the result of pent-up demand and people putting work into their vehicles as they drive them more again.
That may be true, but there are also other factors driving growth, such as the lack of available new cars, observed J.D. Ney automotive practice lead at J.D. Power Canada in the latest episode of Auto Service World Conversations.
He joined host Peter Bulmer to explore the results of the company’s recent Canada Customer Service Index—Long-Term (CSI-LT) Study.
“The impact of the difficulty in buying new cars at the moment, combined with the historically extremely high prices of used vehicles, we think we’re seeing some Canadians hold onto vehicles a little bit longer than they might have traditionally, which obviously then carries with it, usually, some added repair and maintenance bills,” he said.
But what about when new vehicle supply recuperates? Why do dealers still draw in more money than aftermarket shops? And what correction has Ney been waiting to make for the last year since he last appeared on our podcast?
Tune into the latest episode by clicking the banner above or through this link.
Leave a Reply