Safelite, Lithia & US Auto Body Shops: In-Housing Glass Repair

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Yes, apparently rock chips account for more than 80% of all glass damage. What's the average attach rate for the windshield warranty at Lithia or Penske? Out of 100 new cars sold, how many would opt for this windshield extended warranty?

I'll answer this in two parts. The basic warranty sold to the customer doesn't include glass coverage, just mechanical defects. Most dealerships are selling at about a penetration rate - which I think you call adoption rate - averaging anywhere from 40% to 50% of cars sold. About 40% of customers are buying the mechanical extended coverage. Out of those, a very small percentage, about 10% to 15%, are buying the glass coverage. In most customers' experience, they buy cars every three to five years and just go to Safelite for glass repair for $100 to $200. It used to be very cheap, but now customers are finding out it's much more expensive.

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When I take my car to the Lithia dealership, how often would you send me to a specialized glass repair shop versus deciding to fix it on-premise?

About 10 years ago, 80% of the time, they would outsource it because the market was small. If the dealership only makes $20, $30, $40, or $50 on replacing your windshield, they'll send it elsewhere. They don't want to pay their mechanics high wages for it. Nowadays, with all the technology, dealerships almost have to do it in-house due to calibration needs.

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