Singapore’s car population is getting older. Here’s what it means for workshops. This is part 3 of a three-part series where Steer explores the aging car population in Singapore.
Part three explores what an aging car population means for workshops:
More business for independent workshops
New cars typically get 3 to 5 years of warranty from their authorised dealerships, and therefore tend to get serviced at car dealerships despite the lift of warranty restrictions on the use of independent workshops.
As more Singaporean car owners hold on to their older cars, there will be fewer new cars which will head to their authorised workshops for their servicing.
Instead, independent workshops will get more jobs, as prices are typically lower.
Ticket size of each job rises
Older cars tend to require not just more care and attention but also added expertise resulting in workshops tending to charge more per job.
In part two of our series, we explained why it will be more expensive to service an older car.
It boils down to 1) more expensive car parts, and 2) higher compensation for time taken to source each car part.
Great for workshops with old car expertise
Having a higher number of older cars on the road means that there will be more servicing done at workshops that specialize in older cars.
Steer believes there are two factors that are critical to be able to service older cars:
1) Expertise to fix older cars: Mechanics with knowledge in older cars are becoming rarer. Workshops with experienced mechanics will have a competitive advantage and will be able to accept more jobs which involve older cars.
2) Ability to source car parts: Older car parts are harder to find and are typically more expensive. A car workshop that has strong expertise in finding car parts will be much more competitive. The time required to complete each job reduces, which is great for the customer and for the car workshop which wants to maximize profitability with minimum time spent.
Car workshops with these two attributes will be able to service older cars better and hence be more competitive.
Steer: For any car, not just new ones
Owning an old car is tough and we understand that.
With Steer, you will be able to find the most suitable workshop for your car.
Chat with us today for quotes, recommendations and any help you might need.
If you are a workshop…
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