The oil change industry in 2005 saw many changes and emerging trends. Competition is getting a little tougher in both large and smaller regional markets. Wal-Mart Super Centers are challenging price points. Labor and technician shortages are troubling and turnover rates are killing franchise and chain operators as costs of oil, supplies and materials rise, while regulation increases and price points fall. 2005 did not see the predicted problems associated with hybrids and fuel cell cars, which would not need oil changes that many industry analysts had feared.

One trend we will continue to see is Auto Dealers will do more in-house services such as oil changes due to the trend of AutoMakers to offer free-maintenance and specialty oil to help them comply with further tightening of emissions regulations. Daimler Chrysler for instance is now offering free fuel for two-years and free maintenance for as long as you own the vehicle if you buy a new Jeep. Other AutoMakers will follow and match such deals. Meaning the oil changes will be done where they are free, at the dealership and not the independent oil change shop or franchise oil change chain outlet. BMW now has specialty oil, as do other AutoMakers that must be used to uphold the warranty and offers free oil changes as well. Free will continue to be the consumers favorite price and extremely hard to compete against, as was the $12.95 oil change price point of the past few years offered by Wal-Mart Super Centers. Think on this.

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