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Posted

I have never offered car rentals for my customers however we do run into situations where we need the car past the allotted time and many times the vehicle is not in a drivable condition (we have all been there!).

 

What do you guys do to provide rental car service for customers?

Posted

When we do not have a loaner available, we do use Enterprise Rental. We sometimes will pay for the rental or sometimes just coordinate getting the rental set up and dropped off for the customer.

Posted

What kind of rates do shops get for daily and weekly rentals?

 

I am thinking of just buying a couple of mid 2000 Toyotas here soon to have as loaner cars.

Posted

I would call and reserve car in customers name. Make sure they had proof of insurance and credit card. I help get customer to and from rental car but they often get there own ride. Customer pays rental car at "Shop Repair Rate" and I give them rental car rebate off the repair invoice.

Posted (edited)

does anyone know how the insurance and liability is handled with loaner cars? Worst nightmare is a customer getting into a major accident with your vehicle.

With todays blame game climate, develop an eye to eye,on a first name relationship with a rental car companies personnel. Set things up for customer to pay and have them picked up or dropped off as needed.

I want to service, repair and worry about Customer Pay cars not My Fleet Of Loaners.

 

 

Now if I Sold cars I would have a different answer.

Edited by FROGFINDER
Posted

We have a policy that if a repair bill, not counting tires, is $300 or more, then the client is entitled to a rental car free of charge for one day (only if necessary.) We have a deal with the local rental company (Enterprise) where we get cars for $30 per day. We will take our client to Enterprise for the car with the understanding that if they don't return it on time, then they pay the difference. We have a charge account with Enterprise, but we take a $30 check to them for the first day. That way my client sees us pay for it, and sees the benefit to them.

 

I had a lady to come in this past Monday A.M. She had a bad radiator in her 2008 Mini-van. Being on her way on an out-of town business trip, she had no other way but her van. When I told her about my courtesy car policy, she had her problem solved. I sent the $30 check and when she returned Friday she paid the other days. Her bill with me for repairs turned out to be a $788 invoice. The shop supplies charge was $22.88 so the rental car only cost me $7.12 since I charged for anti-freeze on the R-O. Her husband came in with her to personally thank me for providing transportaion to his wife.

 

I thought about having 2 or 3 loaner cars, but with Enterprise the client gets a new car with a full gas tank, and I have no, zero, zilch, liability because it is rented in the client's name. I just pay for it.

 

Sometimes a car comes in at say....2 to 3 in the afternoon, and needs work that will make a pretty good invoice. If we cannot service it the same day, I will offer a free car til the next day. This assures I get the job, and the client knows we care.

 

I have had as many as 6 cars at a time rented. It had proven to be very profitable, popular, and client-retaining!!

 

 

  • Like 2
Posted

Loaner cars are great to have when you have a problem child vehicle because it can buy you time. We do not have a fleet of loaners but we do have two vehicles that we use.

I just purchased a Toyota as a loaner car. This seems like a good idea to have for problem child cars. But, "nobody" is answering the questions about how to "reduce liability" when we do loan them out. Yes, Enterprise is great in many cases. They come to our store and pickup the customer for us also.

Posted

I just purchased a Toyota as a loaner car. This seems like a good idea to have for problem child cars. But, "nobody" is answering the questions about how to "reduce liability" when we do loan them out. Yes, Enterprise is great in many cases. They come to our store and pickup the customer for us also.

Again, http://www.ratchetandwrench.com/RatchetWrench/August-2014/Managing-a-Fleet-of-Loaner-Vehicles/

Posted

We have used a few loaner cars for years. I have to be careful with what insurance companies give us quotes. Yes cars cost about $600 a year for insurance but as a transmission shop paying for rentals become costly. We always use the "borrowed vehicle agreement" from Reynolds & Reynolds. This transfers the liability to the borrower first and my shop second. Without this we would have been on the hook for the one incident we have had lately.

  • Like 1
Posted

I called my insurance company several months ago to get a quote for insurance for a loaner car. I was told that they could not find anyone who would write a policy. My question to those that have loaner cars is this. When you got insurance, did you tell them exactly what the car was being used for?

 

Scott

Posted

I called my insurance company several months ago to get a quote for insurance for a loaner car. I was told that they could not find anyone who would write a policy. My question to those that have loaner cars is this. When you got insurance, did you tell them exactly what the car was being used for?

 

Scott

Yes. It was a headache as most insurance agents have no experience in this area. You'll have to exercise some patience in handling this. Your best bet is to call around and see if you can find out if anyone local has any experience with this insurance situation. Obviously, laws will be different state to state so it's difficult to give advice.

  • 2 weeks later...
Posted

I advertise free rental cars if the vehicle is scheduled for that morning and it doesn't get finished by 5. I call enterprise, they come pick up the customer. The customer gives them their credit card for incidentals, and the customer is responsible for the gasoline but I pay for the actual car rental. Enterprise just sends me the bill.

  • Like 1
Posted (edited)

I talked with my insurance rep the other day, and brought up this topic again. He told me it is insured as a business opened vehicle, and can be driven by customers as a LOANER, but not a RENTED vehicle. My business insurance is the PRIMARY insurance on the vehicle at all times but there are agreements that can be signed to attempt to have the customers insurance cover it before mine does. However, if anybody calls my insurance to make a claim, it trumps any agreement I may have with the customer.

Edited by Mario
Posted

Shielding from liability is the major concern for loaner cars. I would love to have loaner cars with some nice decals or vinyl for advertising purposes however liability is such a huge concern especially where I am at.

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  • Have you checked out Joe's Latest Blog?

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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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