Average Age of Cars = 13.6 Yrs, CO Dethrones CA, Billions Lost Due To Poor Experiences

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

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As we enter a new week, we’re considering how the average age of cars is affecting parts and service. Plus Colorado is now the most EV state in the US, topping California, and a new study is showing that bad customer service is costing retail stores billions.

Show Notes with links:

• Despite a record number of aging vehicles on the road, the auto repair and parts industry is facing challenges as economic pressures affect consumer spending habits.
  • The average passenger car is now 13.6 years old, up from 8.4 years three decades ago, creating a high demand for maintenance.
  • Inflation, higher interest rates, and supply chain issues have led consumers to defer maintenance or opt for cheaper, off-brand parts.
  • Companies like Monro, Genuine Parts, and Valvoline have reported significant drops in sales, citing cautious consumer spending.
  • Carfax data shows 30% of vehicles are overdue for tire rotations, while 19% are late for oil changes, despite the high return on maintenance investment.
  • Executives from AutoZone and O’Reilly Automotive predict a bounce-back as deferred repairs eventually become unavoidable.

• Colorado has dethroned California, emerging as the nation’s leader in EV sales, with a stunning 25.3% of new vehicle sales being electric in Q3 of 2024. Here's what’s driving the surge:
  • Residents enjoy up to $12,500 in combined state and federal EV tax credits.
  • Over 5,500 public charging ports are operational, with $5M allocated for 576 additional ports in 2024.
  • 82% of EVs sold in the state are fully electric, signaling robust consumer demand.
  • Governor Jared Polis champions EVs as key to achieving net-zero emissions by 2050, urging residents to act before state tax credits decrease in 2025 from $5000 to $3500.
  • Will Toor, Colorado Energy Office Director, states, “Our commitment to making electric vehicles affordable and reliable is paying off.”

• Retailers are losing an estimated $262 billion annually due to inadequate in-store experiences, according to a study by Forsta.
  • Nearly half of negative customer reviews are tied to issues like mismanaged checkouts and unhelpful staff, leading to frustration and lost sales.
  • The study revealed that 74% of US adults will abandon a store without making a purchase after a bad experience.
  • While online sales on Black Friday saw a 14.6% increase, in-store sales grew just 0.7%, with foot traffic dropping by 3.2%.
  • Forsta CEO Kyle Ferguson emphasized the importance of in-store experiences, stating that poor service erodes trust and loyalty. He pointed to Walmart’s use of AI-powered tools to improve customer interactions as a model for others to follow, urging retailers to prioritize in-store environments during peak retail periods.

Hosts: Paul J Daly and Kyle Mountsier
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