The slowing economy could be a boon to body shops – a decrease in new car sales means more aging cars could be in need of repair. However, a survey of 50 Maaco shops across the United States by information-gathering company TickerMine revealed that only 6 percent of shops saw an increase in business over recent months.
About 50 percent of Maaco shops reported business was down, and 44 percent said business was steady. TickerMine still expects consumers to spend more on auto repairs in the coming months, and the majority of Maaco shops agreed that customers were now more likely to spend money on major body work to prevent needing a new car and to preserve the vehicle’s resale value.
Because of the weak economy, Maaco customers are now more likely to use insurance claims to pay for repairs, according to the survey. Consumers are also looking for other ways to cut repair costs – 66 percent of Maaco stores reported an increase in customers using coupons and other discount promotions when paying for work.
Although business appears to be steady or slowing for Maaco shops, as cars are stretched further into their useful lives, the flow of owners seeking major and minor repairs to put off purchasing new vehicles is likely to increase, according to TickerMine.
