Quantcast
Jump to content


Forming an Alliance with a New Car Dealer? Seriously?


Joe Marconi

Recommended Posts

There is a large repair shop in the mid Atlantic states (they want to remain anonymous) that just formed an alliance with a local new car dealer to service their used cars.  I will change some of the details; a request from the shop owner. But, the story brings up a few interesting facts. And, the big news is: This shop is profiting from this relationship!

The shop owner was approached by the GM of the dealer to service some of the used cars they have been taken in on trade and want to sell.  The dealer techs are not trained and not familiar with the different car lines, being a Chrysler-only dealership. Due to the shortage of cars these days, the dealer is taking in on trade, all makes and models and wants to sell the used cars. And we all know profitable used cars are. 

The repair shop performs a multipoint, which they get paid for,  and then they do many of the services and repairs, which includes tires, brakes, wheel alignments, oil changes, air and cabin filters, wipers and other simple services. Most of the cars are newer cars, and the work can be done by a GS tech.

I don't know the pricing, sorry.  But, I am interested to see where this goes.  

Imagine, a new car dealer asking an independent repair shop to service and repair their used car fleet???

 

Link to comment
Share on other sites



Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Similar Topics

    • By carmcapriotto
      Key Talking Points
      Growth Option: Satellite Location Wanted to grow, needed more production space, couldn’t expand. Options was buying second location or a satellite location Found office space with industrial area ½ mile away- former call center but had 20 ft ceiling and old garage doors Put his best technician to the satellite location All customers go to the original location Opportunity for more heavy line work, and alignment/tires and hiring Culture of teamwork to shuttle back and forth  Has office space now and leases other spaces- offsets mortgage  Creative thinking as a solution  Up 63% last year Connect with the show:
      Aftermarket Radio Network
      Subscribe on YouTube
      Visit us on the Web
      Follow on Facebook
      Become an Insider
      Buy me a coffee
      Important Books
      Check out today's partner:

      Dorman gives people greater freedom to fix vehicles by constantly developing new repair solutions that put owners and technicians first. By always innovating, Dorman has led the way in growing the aftermarket. Here you will see a few examples of a Dorman OE Fix. An OE FIX is a Dorman repair solution you can’t get from the original equipment manufacturer. It means they found a situation where they believe the OEM wasn’t giving repair professionals what they wanted, so we fixed it. Everything Dorman does is centered around providing customer value, both in the quality of products, and the creativity of solutions. Our engineers and designers go out of their way to save repair technicians time and save vehicle owners money. Want to really go under the hood? Take the Dorman Virtual Tour at www.DormanProducts.com/Tour
      Tom Grady founded Redhawk Auto Service in 2005 with the goal of providing the Temecula Valley with high-quality automotive service that emphasizes excellence, value, and convenience. Tom Grady has over 35 years of automotive industry experience as a former executive with Ford Motor Company and Nissan. He was also an automotive dealer in Orange County and New York. Mr. Grady has an M.B.A. degree and a B.A. in Economics. The Grady’s also own full-service hand car washes and founded Redhawk Hand Car Wash in 2003. Mr. Grady has been actively involved in the community through the Rotary Club and as the past Chairman of the Lake Elsinore Chamber of Commerce. Listen to Tom's previous episode HERE  

      Click to go to the Podcast on Remarkable Results Radio
    • By Obsidian Motors
      Has being approved by an insurance company made a difference to your bottom line? I had a vehicle towed in recently and the customer's insurance company was to pay for the work done. About a day or two later an insurance adjuster showed up to the shop, gave an inspection and approved our location. The caveat was that the invoice he eventually submitted was a complete lowball. I'm wondering if it was that particular company (small and regional) or would a major insurance company provide a more realistic approved quote?
      Also, do you guys think it's worth it to request to be on all area insurance companies list of approved shops in the long run?
    • By Thewizardsauto
      Hi I own an auto repair shop in Arkansas. We do a lot of work for used car lots. I am just curious if anyone else does this as well what’s the average labor for them. Good and bad experiences? I have a total of 5 car lots we rotate on fixing for the week and it’s a never ending cycle of cars. Some lots beat us up on price while others do not any one have tips from experience?
    • By bantar
      @JerryK  Hi Jerry, in the Shop Labor Rate thread, you posted 3 labor rates, regular, euro and Pre-1975 cars.    I find it interesting that you've set your labor rate very high for these cars.   It either means that you don't want those, or it's more expensive to work on them, so you charge more, or it is a specialty skill set that you possess and thus it's a more valuable service, or you are building in an inherent storage fee due to the extended time it takes to get parts, etc or ?   I'm interested to understand your thinking regarding this particular rate.   Also, why is 1975 the cutoff date?
      We've been working on a number of older cars, and I've taken the approach that it's a time and materials job.   If it takes me 3 hours to remove the stuck drums off of your old car, then your brake job will cost more.  If I above-normal spend time looking for parts, then this is billable time too.    We shouldn't absorb the added difficulty of rust, age, etc.   Maybe I'm approaching this incorrectly.   I took in a 1984 project car on Friday... non-standard engine, but newer, bubba's electrical wiring mess, etc, but overall in good shape.    We started with 5 hours of labor to assess and possibly fix.   It's partly a test to see if he's serious on fixing the car.  
       
      P.S.  I live in Plano, but my shop is in McKinney.    In my previous life, I worked not far from your shop. 
    • By MINI4U
      We are in desperate need of techs. I tried Indeed and was very dissatisfied with the "talent" they sent us. I am considering Find A Wrench they post on Indeed as well as Zip Recruiter and some 90 other companies as well as social media. Has anyone tried them or ACT Auto Staffing? 


  • By Joe Marconi, in Automotive Management,

    By champtires, in Automotive Industry,

  • Our Sponsors



×
×
  • Create New...