Date: Wed, 30 Jan 2008 12:33:56 -0800
Reply-To: Loren Busch <starwagen@GMAIL.COM>
Sender: Vanagon Mailing List <vanagon@gerry.vanagon.com>
From: Loren Busch <starwagen@GMAIL.COM>
Subject: Re: NVC Re: Stevens Creek Volkswagen in Santa Clara
In-Reply-To: <odb3pdjc.fsf@envisagenow.com>
Content-Type: text/plain; charset=ISO-8859-1
RE: Dealing with new car dealerships and factory warranties.
Been following this thread and will add a couple of comments that might help
put things into perspective.
First, the factory warranty. For a brief time (eight months) about 40 years
ago I sold new and used cars at a local family owned, long standing
dealership. Our line was Chrysler-Plymouth. When I left I cam away with
several lessons learned.
First, on the factory warranty. The first of the five year 50,000 mile
warranties had started just a year or so before, started by Chrysler and
followed a year or two later by Ford and GM. Within a couple of years GM
was in deep do-do with their warranties and so was Ford. Chrysler was doing
okay but did start to limit the warranty to first owner, fees to transfer to
second owner. And ALL the dealers were madder than hell. It was not just
the wild expectations of the buyers that they had to deal with (expecting
free oil changes, free tires, and the ultimate, buyer that actually expected
free gas) but dealing with the factory. All of the big three were beating
up their dealers over warranty claims. Perfectly legit claims for failed
parts covered under warranty were (and probably still are) scrutinized a d
picked apart by the regional offices. And when approved for reimbursement
the amount allowed to the dealer for replacing a failed part was usually way
below their normal shop rates. So dealers started dragging their feet on
warranty service because they knew it was a losing proposition for them.
And many dealers brought it on themselves. One classic example was at a
local Ford dealer. Get up to about 45,000 miles, slip the service manager
$100 and shazam, new engine and tranny, under warranty. So very quickly
there was direct oversite on such claims by the factory reps, required
inspection and teardown before approval. And that meant weeks if not months
of delay for the buyer. My understanding is that even in 40 years the
situation has not changed. Even the best, most honest dealers (and they are
out there) are lumped into the same boat as far as the factory rules are
concerned on warranty claims. So you can blame three groups for the warraty
problem: The new car buyer with unreal expectations (never bother to read
the paper work that comes with the car), the dealers that are being squeezed
from both side, and the factory for trying to keep from losing their arss
over things they never promised to provide.
The second point I'd like to make is don't judge an overall dealership by
the first person you meet. The parts counter guy (or gal in my case at the
local VW dealer, one sharp lady) is a tech, not a PR man. Not likely to
have a lot of people skills and bound by the company policy. The service
writer (BTW, I've never heard of a service writer working on commission.
May be so but those I've met were usually mechanics with better than average
skills for meeting people, that's why they ended up a service writer instead
of being in the work bay) again is just following the rules for that shop.
And when you are dealing with a car salesman it's a crapshoot. When I was
selling it was for what was called a 'straight house'. We met the customer
at the curb and did all, all mean all, the presentation, demonstration,
selling, closing, and delivery. No handing off to a 'closer', Insurance
man', etc. Such dealerships were rare at that time and probably more rare
today. And the commission schedule was good, the benefits very good
including a 'demo' car to drive and a gas allowance. Today I understand
that car salesmen have a very thin commision schedule, no 'demo' car to
drive and little or no benefits at most dealerships. So the people that are
drawn to that occupation become a very varied lot.
My advice would be this. If trying to buy new see if you can find a
dealership that has been handling the same marque for years, probably family
owned and in the same location for many years. Call and ask for the manager
or sales manager. Explain that you are an experienced and knowledgeable
buyer. Tell him you would like to deal with his most experienced and
knowledgeable sales man and ask for his/her name. Then contact that
salesman and make an appointment. Tell him what models you are interested
in so he can update himself on current inventory before you get there.
Keep the appointment and see what happens. When you approach a good,
experienced salesman in a business like manner you'd be surprised what a
response you can get. Also keep this in mind. It used to be and I assume
still is that dealers of the same make can get a vehicle from another
dealer. If you find the exact car you want but don't like the dealership,
go to another dealership, tell them what you want. If they don't have it
tell them where it is. Might not always work but worth a try.
And as always, YMMV.....
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