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Subject:Re: NVC Re: Stevens Creek Volkswagen in Santa Clara
From:Mark Tuovinen
Date:Wed, 30 Jan 2008 12:37:21 -0900

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.....
>