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Need Help On Loaner Cars

Joe Marconi
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Randy Apprentice

Randy

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In an effort to compete with the dealers we are considering loaner cars. We already sell used cars, so converting one or two of our cars into loaners would not be any great cost. I would like to know if there are any experiences and tips from those shop owners who have a loaner program or just if anyone has an opinion, I would greatly appreciate it.

I think this is a great tool and not very expensive.I was really thinking about this as well.Do you think it would bring in more clients.And has any one been offering this service.

  • 2 weeks later...
kellyurl13 Rookie

kellyurl13

Posted
Posted

We have seen a lot of new people come to us due the closing of so many new car dealers. Many of them are used to loaner cars. I don't want to loose this customer base.

 

I think for me, it's worth the try.

 

 

 

The shop I left before opening this one has used loaner cars for about 10 years. Customers love it and don't mind paying a small fee for the convience. They were charging a $15 maintainence fee and replace the fuel you use.

 

The down side was the cost of insurance, cost of maintainence, lots of customers did not replace fuel(especially when gas was higher) . We were constantly cleaning and refueling cars. I think it would be important to have someone inspect and clean upon return to avoid any body damage and low fuel.

 

I would do a cost/benefit analysis and see if it would be better to work a deal with a local rental car agency.

CARMandP Proficient

CARMandP

Posted
Posted

I worked at two different new car dealership's before starting my own business. One of them had their own loaner cars that they could offer to a customer if the customer needed one. The other dealership had a deal with Budget Car rental (I think) that they used for their loaner cars. You might want to see if there is any car rental places that would give you a deal that way the car is the responsibility of the customer/rental place and not your expense. You could add a small fee to the customer ticket if they wanted a loaner car and you may have to eat some of the cost. You would have to think about the difference of the cost of owning and maintaining your own cars verses just paying a little each time to a rental company and not having to worry about your own car.

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    • Joe Marconi
      The Toolbox is Last to Leave, First is the Heart
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      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.

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