I made it up – gotta admit that. But I didn’t just pull it out of my… hat.
My wife’s older SUV used to cost us roughly $1,500 in annual repairs. Financially, that equated to $125 in “monthly payments” on that car we held the title to. Not a bad deal when the average car payment was over $500. However, my wife got tired of taking it to the shop. It was going in for work about three times a year. It only took two years of this for her to lose confidence in the car and want something newer.
The frustration point
The frustration point is the number of repairs made over a specific dollar amount that drives someone to be tired of their car. In 2024, we saw the dollar amount decrease to $518 from 2023’s $563 before someone traded that car in. You can call the frustration point $518 today. Then, ask, “How many times will someone pay around this amount before they are easily enticed to get rid of that car for something newer?” That number is a feat of psychology and varies for every driver.
Why is the frustration point important to a dealership?
Knowing customers have a short fuse with their car after spending $518 is an incredible stat to know! The average repair order was $515 for all of 2024 and jumped to $521 in Q4. Many people are second-guessing the future with their cars right now. If you are not providing an outlet for these customers to explore a different direction with your store, they will hunt for that direction at someone else’s store. Don’t be that lazy dealer who missed all that opportunity.
We can help. For an automated solution that doesn’t require extensive process change, take a look at TRADEiQ.
