The Mobile Auto Repair Threat: Is Your Car Dealership Ready for Turo?

Dave Bentson Car FAQs, Dave Recommends, Expert Insight

Do you remember the first time you heard about Uber?

It’s one of the more prominent examples of a disruptive business model that has turned an industry (in this case, taxi cabs) upside down and redefined how we go about our day-to-day lives.

Another four-letter word is now on the rise and any auto dealership leader must not only face it, but embrace its effect on their operations: Turo, a communal car-service app that is essentially an Airbnb for cars, particularly high-end models.

With the growing popularity of mobile auto repair businesses, dealerships’ profit margins are being threatened. If you are a dealership owner and you have a service department, then you know that is where you cover most of your operating costs with a gross profit that is upwards of 60% or 70%.

Those huge numbers may already be in your rear-view mirror, though. Somebody buying a Porsche and only allowing a franchised dealership to work on their prized possession—that era is over.

There are many small to mid-size independent shops whose sole focus is convincing your clients that their Porsches can receive the same high-quality care that you provide, but at a significantly lower cost.

Every quick-lube shop is obviously not an imminent threat to your survival. However, it’s not enough to acknowledge that your clients are busy people who place a premium value on their time. What are you doing about it?

At minimum, much along the lines of Turo, offer a concierge pick-up/drop-off service that comes with a loaner car that allows them to go about their day in seamless fashion.


PAG Client Testimonial I

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