FIXED OPS JOURNAL SERVICE COUNTER Light brigade Automotive diagnostic firm CarMD identified the 10 most common repairs related to check-engine lights in the U.S. last year. TOTAL AVERAGE REPAIR COST (PARTS AND LABOR) % OF REPAIRS 1 (tie) Replace ignition coils and spark plugs 1 (tie) Replace oxygen sensors 3 Replace catalytic converters with new original equipment catalytic converters 4 Inspect for loose fuel cap and tighten or replace as necessary 5 (tie) Replace ignition coils 5 (tie) Replace evaporative emissions purge control valve 5 (tie) Replace mass airflow sensor 8 Replace evaporative emissions purge solenoid 9 Replace fuel injectors 10 Replace thermostat Source: 2019 CarMD Vehicle Health Index 5.8% 5.8% 4.9% 4.2% 3.6% 3.6% 3.6% 2.8% 2.7% 2.4% Average performers The National Automobile Dealers Association compiled this profile of the average dealership's service and parts operations in 2018. Income breakdown Dealerships' total service and parts sales, in billions, in 2018 Service labor sales Customer mechanical $20.67 Warranty $9.86 Reconditioning $8.92 Sublet to other repairers $4.00 Customer body $3.77 Other $4.43 Total $51.65 Parts sales Wholesale Customer mechanical Warranty Reconditioning Customer body Counter Other Total* $391 $244 $1,371 $26 $218 $150 $341 $154 $450 $245 $18.33 $18.30 $12.26 $6.24 $3.42 $3.02 $7.03 $68.61 Total dealership net profit as a percentage of service and parts sales 16.2% Total repair orders written 18,544 Total service and parts sales per customer repair order $298 Total service and parts sales per warranty repair order $343 Parts sales per service labor sale $1.58 Number of technicians (including body shop) 16 Total parts inventory $405,392 Average customer mechanical labor rate (per hour) $118 Source: NADA Data 2018 Service managers' pay gap Average pay for service managers at new-vehicle dealerships rose by 15% from 2014 through 2018. Their compensation continued to trail that of dealership F&I and sales managers. Service manager Sales manager F&I manager *Subtotals don't add to total because of rounding. Source: NADA Data 2018 Source: 2018 Dealership Workforce Study, National Automobile Dealers Association PAGE 6 JUNE 2019