Canadians are spending about 7% less on vehicle repair and maintenance this year, according to a new survey by J.D. Power and Associates.
On average, annual spending has declined to $856 this year from $920 in 2008 and more Canadians are looking for the cheapest place for service with 23% of respondents looking for the most affordable route from 17% last year.
"In a difficult economy, vehicle owners seem to be delaying what they perceive to be non-essential maintenance or seeking out the lowest-cost option," said Darren Slind, senior director and J.D. Power and Associates' Canadian automotive practice leader. "In the long run, this may prove more costly in terms of vehicle reliability, but in the short term, consumers are dealing with other spending priorities."
The study also found that new car dealers are losing market share to after-market service providers. The survey found, overall, after-market providers now account for 59% of the estimated $11.2 billion annual service market for vehicles between three and 12 years old, up from 57% in 2008.
"This equates to more than $220 million in lost revenue annually for dealers," said Slind. "We expect that dealers will fight back aggressively in the coming year to recapture this lost market share."