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used car story of the week


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So as a few of you know I got into selling used cars as a supplement to the garage work. It generates headaches faster than it generates cash. Here's what's on my plate for this week: a girl bought a pacifica from me with 90k miles. Paid about $5k. I made $800. Clean car, no issues. I gave her a written 30 day warranty per NY law. That was in February. The first I hear back from her was last week, she is suing me in small claims court for $3,800. Huh? She claims she spent that much in repairs the last month and I'm responsible. So while the car was under warranty it didn't break. In the first 4 months of ownership it didn't break. Now 5 months later and 10,000+ miles something broke and its 100% my fault because I sold it to her. It really blows my mind the mentality of some people. The sad part is if any of my paperwork is out of order I'll probably have to pay her something. If she's friends with the judge I'm really screwed. Since when is a car dealer responsible for the life of a car? I just don't get it.

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I had a dealers license for a couple of years and found it was too much of a headache for little return. I could have perfectly good reliable car that was in someones budget and every thing is perfect except they want a red car and not a blue one. I let my guys buy a few cars from customers that have blown head gaskets or something the customer no longer wants to repair. They spend some time on the weekend and sell them on Craigslist pretty quick. It's a perk for them and they make a little extra cash. I usually get a small cut for the use of the shop. They have to create a shop ticket for any supplies they use. I have found it's easier to broker the cars for people and get a small cut for finding the seller a buyer. I have found that you can sue anybody for anything and it takes very little work or money to do so. The times people have sued me I just let them and then I counter for all my expenses when it's all said and done. The judge is a very good friend of mine so he usually recluses himself on those grounds, but the replace is a "friend" also. It's still a waste of time as I have judgements against several people which I will probably never see. I would be happier just punching them in the face but I guess that causes other problems.

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I am following this subject. Real curious to see how court goes for you. I have about ten used cars I have slowly accumulated over two years. My guys work on them when it is slow. It seems like they are unable to fix any of my cars. Each time we fix one problem another occurs. I'm getting to the point I want to send all ten to the scrapper.

Edited by Handson
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I haven't gotten a verdict yet but I'll fill you in when it shows up. Used cars are funny, I drove one as my own commuter car for like 4 weeks. 2000+ miles. I wanted to make sure it would be 100% troule free. The same day I sold it the starter quit on the guy, had to tow it. I fixed it under warranty but ??really?? How can a different driver turn the key different than me?

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I've had decent success with used cars. Here are some good tips. Charge yourself a wholesale rates at least for the shop. Put it up for sale as soon as you do final test drive. Keeping for couple weeks sounds good, but notinreality Cars break. At somepoint, yours willtoo. Sell It as is and offer discount on future repairs if you want. Better idea is to sell away from your shop bc customers think since you're a mechanic the car should be perfect. And if you charge for the repairs to yourself, then techs are motivated to get it done bc you are a customer. It's working for me thus far. Oh yeah, n don't put too much into a car. $4000 outlay for $800 profit isn't optimal, but it does happen. .

Edited by davine4real
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There is a shopping center next door to my shop. When I have a car for sale, I advertise it on Craigslist. I don't have a "for sale" sign on the car (SUV, Truck, etc.) When I get a call on my cell phone, I tell them that the car is at the shopping center where AutoZone is. To go take a look and if they like it, I can meet them there after work. This way they never know I have a shop, and it is strictly a car for sale "By Owner." I am honest in answering questions, but sell the car as is where is. I previously sold them at the shop until I found out that the buyers thought they were guaranteed for life.

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Got a letter in the mail today. I owe $3000. No explanation. My paperwork was good. The customer (ex customer) admitted the vehicle was fine for 90 days. Words can't describe how I feel. The used car dealer, in this case, me, was deemed liable for damages long after the warranty expired. I hired a lawyer to appeal. I assumed the 30 day used car warranty protected both parties, I was wrong. Just a warning to you guys, for $25 anybody can sue you and win without any legal justification. Its simply the consumers word vs the business. I'll let you know how the appeal goes, I assume when we go into a real court facts, laws, and precedent will carry more weight. I hope.

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Got a letter in the mail today. I owe $3000. No explanation.

 

That's strange, the ruling in her favor should state the facts that led to the decision in her favor.

 

For those of you that the Law is a mystery, take this course for your own protection.

 

http://www.jurisdictionary.com/?refercode=CH0002

 

It has been worth every penny to me.

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  • Have you checked out Joe's Latest Blog?

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      Got your attention? Good. The truth is, there is no such thing as the perfect technician pay plan. There are countless ways to create any pay plan. I’ve heard all the claims and opinions, and to be honest, it’s getting a little frustrating. Claims that an hourly paid pay plan cannot motivate. That flat rate is the only way to truly get the most production from your technicians. And then there’s the hybrid performance-based pay plan that many claim is the best.
      At a recent industry event, a shop owner from the Midwest boasted about his flat-rate techs and insisted that this pay plan should be adopted by all shops across the country. When I informed him that in states like New York, you cannot pay flat-rate, he was shocked. “Then how do you motivate your techs” he asked me.
      I remember the day in 1986 when I hired the best technician who ever worked for me in my 41 years as an automotive shop owner. We’ll call him Hal. When Hal reviewed my pay plan for him, and the incentive bonus document, he stared at it for a minute, looked up, and said, “Joe, this looks good, but here’s what I want.” He then wrote on top of the document the weekly salary he wanted. It was a BIG number. He went on to say, “Joe, I need to take home a certain amount of money. I have a home, a wife, two kids, and my Harly Davidson. I will work hard and produce for you. I don’t need an incentive bonus to do my work.” And he did, for the next 30 years, until the day he retired.
      Everyone is entitled to their opinion. So, here’s mine. Money is a motivator, but not the only motivator, and not the best motivator either. We have all heard this scenario, “She quit ABC Auto Center, to get a job at XYZ Auto Repair, and she’s making less money now at XYZ!” We all know that people don’t leave companies, they leave the people they work for or work with.
      With all this said, I do believe that an incentive-based pay plan can work. However, I also believe that a technician must be paid a very good base wage that is commensurate with their ability, experience, and certifications. I also believe that in addition to money, there needs to be a great benefits package. But the icing on the cake in any pay plan is the culture, mission, and vision of the company, which takes strong leadership. And let’s not forget that motivation also comes from praise, recognition, respect, and when technicians know that their work matters.
      Rather than looking for that elusive perfect pay plan, sit down with your technician. Find out what motivates them. What their goals are. Why do they get out of bed in the morning? When you tie their goals with your goals, you will have one powerful pay plan.
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