Higher Reliability And Sales Slump Puts Crimp On Dealer Repair Business

The auto sales collapse that started in 2008 is hitting home in the service department in 2012.

The number of vehicles in operation that are 5 years old and newer will dip to 63 million this year, forecast to be the low point of the industry's downturn and recovery, according to J.D. Power and Associates.

Late-model vehicles traditionally represent the sweet spot for repair and maintenance work for dealership service departments. Fewer of them, combined with the continued decline in warranty work, mean a severe pinch in revenue opportunities for the service department.