The nation’s largest car dealer, AutoNation of Fort Lauderdale, took another step on Monday to keep repeat business flowing by acquiring a national repair firm that will fix your car at home.
The firm announced it has agreed to pay $190 million to buy RepairSmith, which is based in Los Angeles and operates more than 100 outlets in Florida.
The buyout is expected to close in the first quarter of 2023 and is subject to regulatory approvals.
In a statement, AutoNation CEO Mike Manley said the acquisition is his company’s latest effort to expand its place in the after-sales auto service market.
“AutoNation already has over 12 million customers who have shopped with us,” Manley said, adding that the acquisition of companies such as RepairSmith will increase customer loyalty and the amount of money people spend on AutoNation products.
“Although roughly 80% of vehicles sold by AutoNation receive annual service at franchised dealerships during the first three years of ownership, the percentage falls off dramatically in subsequent years,” the company said in its statement.
Mechanics go to you
Founded in 2018, RepairSmith will fix customer cars at their homes or offices. It also dispatches mechanics to businesses that operate fleets of vehicles.
The company offers a limited warranty that lasts for a year or 12,000 miles from the date of the repair, whichever comes first, according to its website. The warranties, among other things, do not apply to oil changes, wipers, and all fluids, or instances where customers seek to fix a problem on their own or touch the work performed by RepairSmith. Battery and brake replacements are limited to manufacturers’ warranties, according to the company website.
Last year, RepairSmith acquired a company called CarAdvise, an online marketplace for vehicle maintenance and repair that allows motorists to compare prices for maintenance services at thousands of shops throughout North America.
In 2020, shortly after the COVID-19 pandemic breakout, RepairSmith created a philanthropic arm called Jump Start which donated repairs worth $10,000 per organization to fix vehicles belonging to nonprofit groups.
