Date: Wed, 30 Jan 2008 12:37:21 -0900
Reply-To: Mark Tuovinen <mst@AK.NET>
Sender: Vanagon Mailing List <vanagon@gerry.vanagon.com>
From: Mark Tuovinen <mst@AK.NET>
Subject: Re: NVC Re: Stevens Creek Volkswagen in Santa Clara
In-Reply-To: <86476e250801301233v5702fe80w94b476d96cf45cad@mail.gmail.com>
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Well put Loren.
FYI many service writers are on commission, in some places it is illegal, I think California is or was this way.
Mark in AK
----- Original Message -----
From: Loren Busch <starwagen@GMAIL.COM>
Date: Wednesday, January 30, 2008 11:45 am
Subject: Re: NVC Re: Stevens Creek Volkswagen in Santa Clara
To: vanagon@GERRY.VANAGON.COM
> 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
> milewarranties 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
> (expectingfree oil changes, free tires, and the ultimate, buyer
> that actually expected
> free gas) but dealing with the factory. All of the big three were
> beatingup 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
> reimbursementthe 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
> servicewriter (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
> customerat 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
> understandthat 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
> knowledgeablebuyer. 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
> interestedin 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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