Dive Brief:
- Despite longer appointment wait times and higher prices, customers report slightly improved satisfaction with new-vehicle dealership services, according to the J.D. Power 2024 U.S. Customer Service Index Study released in March.
- Compared with other customers, non-Tesla EV owners report less trust in servicing dealers and the lowest level of satisfaction with work related to manufacturer recalls.
- “As sales of [EVs] continue to grow and the industry moves out of the early-adopter phase, the typical owner will not be as willing to tolerate a less-than-stellar service and ownership experience,” Chris Sutton, vice president of automotive retail at J.D. Power, said in a statement.
Dive Insight:
Dealerships remain the top choice for vehicle service, but more car owners are turning to general repair shops as their preferred service provider, according to a December study by Cox Automotive.
The J.D. Power study found that 35% of mass-market customers surveyed cited the ability to quickly see an aftermarket service provider as the main reason they would choose such a provider over dealer service.
Appointment wait times are much higher than they were before the pandemic. Mass-market vehicle owners wait an average of 5.2 days for a dealer appointment, while premium vehicle owners wait an average of 5.4 days.
“It’s encouraging to see an improvement in service satisfaction but, unfortunately, the capacity and wait time issues have gotten progressively worse since the pandemic and show no immediate signs of easing up,” Sutton said.
In addition, 34% of those surveyed said cost was the primary reason they chose aftermarket service. Automotive repair and maintenance service costs have outpaced inflation, growing 6.7% from February 2023 to February 2024, according to U.S. Bureau of Labor Statistics data.
J.D. Power said that, during the past two years, the average cost of a respondent’s recent dealer service increased by nearly a third. Inflation and supply chain problems, plus a shortage of automotive technicians and older cars on the road have contributed to higher prices.
The J.D. Power study, which surveyed 64,781 owners and lessees of model year 2021, 2022 and 2023 vehicles, found that, among mass-market brands, Buick ranked highest in dealer service satisfaction, followed by MINI and Subaru. Among premium brands, Lexus owners and lessees reported the highest satisfaction, followed by Porsche and Cadillac.
The survey also found that non-Tesla EV owners experienced twice as many recalls as those who own gas-powered cars.
“This is an area that automakers and dealers need to address now to help make the transition to electrification as pain-free as possible for owners in the future,” Sutton said.
