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It may seem counterintuitive, but as cars get better, dealers
make less money.
The most recent J.D. Power and Associates Initial
Quality Study shows cars are continuing to get better and show fewer problems
when delivered to customers. That means the dealer knows there is going to be
less manufacturer-paid warranty work and that once a car leaves the showroom floor
it's possible the dealership will never see that customer again. But
what's not-so-good for the dealers seems to be working out well for consumers. To
make up for the loss of warranty work, many savvy dealerships are trying to lure
back customers for non-warranty work, such as oil changes, routine brake service,
new batteries and even replacement tire sales. And when warranty
work is required, another J.D. Power survey shows, dealerships are making a greater
push to make sure repairs are done right the first time. This
push toward customer satisfaction by some dealers appears to be working. In
a survey this year of 84,485 owners of cars ranging in age from 2004 to 2006 models,
52 percent returned to dealerships for non-warranty service, up from 49 percent
in 2004. Those customers who paid for the work out of their
own pocket gave their dealerships higher marks for quality of service than those
who had factory-paid warranty work done, but both scores showed improvement from
previous years' surveys. The dealership brands that ranked
highest in the survey were Jaguar, Buick, Cadillac, Lexus and Mercury, in that
order. At the bottom of the heap was Isuzu, followed by Suzuki, Volkswagen,
Land Rover and Jeep.
Owners cited many factors on why
they thought they did or didn't get satisfactory
service, but among the reasons cited was honest
communication between the customer and the service
representatives.
Another
reason owners may be turning toward dealerships for non-warranty work is the increasing
complexity of today's vehicles and a feeling that a neighborhood repair shop may
not be up to snuff on the latest technology. So how should
a consumer decide whether to go to a dealer or take their car elsewhere? For
fairly routine work such as oil changes, most dealers are competitive with independent
shops and many dealers also offer the same quick service. For
other types of work, check the dealer's hourly rate versus other shops. While
there was a time when hourly rates at dealerships were far above independent shops,
the playing field has leveled somewhat as shops have had to invest in new equipment
and hire more skilled workers. Consumers should also check
for some other perks, such as free loaner cars and free washing of your car after
service. In the end, what it may come down to is a feeling
of trust that your car will be fixed properly and at a fair price. As
with the process of buying a car, doing your homework is paramount. But don't
immediately discard those overtures from your dealer to come on back.
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