Tag Archives: franchised dealerships

When is a fixed price not a fixed price?

The ASA upheld a complaint about a recent Toyota advert which claimed that its fixed price car servicing offer meant what it said, whereas some garages were more likely to add extras to theirs.

We knew what Toyota meant and I definitely sympathise with their sales tactic. The problem is that we are talking about an unregulated garage industry with quality workmanship and occasionally ethical problems so nothing is as straightforward as it seems…

For example, in this industry there is no agreed definition of car servicing types or tasks and there is no requirement that the staff carrying out these services should be qualified. Yes, we are told that garages subscribing to The Good Garage Scheme follow an industry standard service but their checklist isn’t the same as the one supplied by Halfords Autocentres or Toyota’s, for example.

So how is a foxy lady going to compare long lists using different jargon before she knows which one is best value for her and her car? She probably won’t; this is a such minefield for motorists.

For example, here are some variations on a type of servicing called an ‘interim service.’
* Buy one from a Good Garage Scheme (GGS) subscriber and it includes 28 items/checks.
* Buy one from Toyota (it’s called an intermediate service) and it includes 30 items/checks which don’t seem to be the same as the GGS…
* Buy one from Halfords Autocentres and it includes 35 items/checks…

And so on… with similar discrepancies when it comes to servicing options such as ‘oil servicing’ ‘full servicing’ and ‘major servicing’…

One thing is for certain – no FOXY Lady has the time to compare and contrast different servicing lists that contain items/checks she isn’t used to and may not understand.

Car servicing differences…

But there are other important differences too, for example…

1 Toyota’s servicing prices (from £99) include manufacturer qualified staff (mostly to Automotive Technician Accreditation ATA standards which means they have demonstrated that they can repair all makes) and car collection/delivery service in addition to dealership standards in terms of waiting areas and washrooms.

2 Halfords Autocentres servicing prices (from £119) are also carried out by ATA accredited staff with the Halfords brand to live up to; but they don’t collect or deliver your car.

3 Good Garage Scheme members are all individual garages who can set their own prices, which may or may not be fixed and who may or may not follow the industry standard service schedule supplied by the scheme owner Forte Lubricants. More importantly, Good Garage Scheme members don’t need to demonstrate any minimum quality standards to join the network – all they have to do is promise to use their so called industry standard checklist and sell Forte Lubricant products to order.

And then there’s the question of the best (not just cheapest) car parts…

NB: Some garages/dealerships discount the cost of an MOT that is done at the same time as a car servicing and others don’t. FOXY advice – always ask for and expect a discount when buying car servicing and an MOT together.

Garage brokers…

And if this isn’t complicated enough you then have schemes run by third party garage brokers like NSN, servicingstop.co.uk and service4service.co.uk where the motorist deals direct with these brokers but doesn’t know which garage will be servicing their car or what their credentials are. Needless to say (but this is a significant factor) if a garage is paying a broker commission and is expected to perform to keen car servicing prices as well, this suggests that the garage will be looking to shave its costs to turn a small profit at the end of the day.

But back to the title of this blog…

Q: When is a fixed price (car servicing) not a fixed price?

FOXY answer: When the work reveals a problem that could not have been predicted. Which is fair enough providing the customer is told or shown the problem and given a quotation for the new work.

Fortunately this exercise has taught us a few important lessons…

1 Car servicing is a very competitive arena with franchised dealers, independent garages and fastfits jostling for position. So shop around for price AND measurable evidence of quality.

2 Dealerships aren’t always the most expensive car servicing solution but at least their work is carried out by manufacturer approved/trained staff and will normally include a car collection service.

3 The same old quality concerns arise because this is an industry that isn’t regulated.

What other industries treat a ‘straightforward, swift complaints procedure’ as a selling point?

And what is the point in any quality garage initiative if it’s a voluntary standard that only the good guys belong to and the rest don’t have to join?

Finally, if I struggle to get my head around all this (and garage quality is supposed to be my specialist subject) how will Joanna Public fare, thinking that all garages and car servicing options are the same?

No wonder so few women enjoy their garage visits… This is all far too confusing.

FOXY

With or without the OFT?

The Office of Fair Trading’s future is uncertain and may affect Consumer Codes Approval Schemes.

A cost cutting proposal in a Government Green Paper is to suggest the merger of the Office of Fair Trading (OFT) and The Competition Commission. Consumer protection will pass to the busy local Trading Standards and Citizens Advice departments.

What will this mean to existing OFT Consumer Code Approval Schemes like the ones sponsored by Bosch Car Service and/or VBRA? Will they lose their relevance and quality teeth for women drivers if the OFT is not there to police them?

The CCAS website confirms this uncertainty re new schemes so perhaps the Motor Codes service and repair scheme may not now reach Stage Two to gain full approval?

Fortunately most of their subscribers are dealerships who can be expected to perform to higher standards than the undemanding ‘honest and fair services’ ‘open and transparent pricing’ and ‘work completed as agreed’ Motor Code standards.  I never really understood why the likes of Ford garages needed this when most are ATA employers already and they get rigorously inspected by the RAC. A waste of money even?

Either way, after c60 years of attempting to put its garages in order, the motor industry has done little of note because bad garages don’t join industry code schemes and still exist. And woman are most likely to be the ones overcharged, patronised and sold things we don’t need.

Despite Trading Standards efforts here (including a few Motor Trade Partnership schemes FOXY likes) these are regional not national bodies.

What is surely needed, with or without the OFT, is a fully regulated garage industry, to include independents, fastfits, bodyshops and franchised dealerships, because shoddy work can mean dangerous cars and compromise our road safety.

But garages’ll still need FOXY Choice’s marketing services to identify the genuinely female friendly businesses because even regulation won’t guarantee a business that understands what we women want!

FOXY

Find out about FOXY Choice approved female friendly UK garages

Female fog factor re garage choices

Car maintenance, including MOTs, car repairs and all aspects of their routine servicing is a £9bn sector of the UK motor industry which is dominated by independent players. The older the car the more likely it is maintained where overheads are less and prices therefore lower.

Understandably the battle for this valuable business is intense because car dealerships have been used to maintaining most new and nearly new cars within their warranty and, in the light of fewer garage services following fewer new car sales in 2008/9/10 they will be looking to replace this lost garage income by finding new customers to look after, those driving older cars who would otherwise use independent garages…

This has become more interesting following new EU rules concerning the repair and maintenance of cars which came into effect on 1 June 2010. The intention was to benefit motorists by making it easier for independent garages to get access to technical support from car manufacturers – who had previously been known to encourage women (and men) drivers to have their cars maintained, serviced and repaired by their franchised dealerships whilst within warranty. This often resulted in the customer paying more than she could have done because typical franchised hourly rates are higher than in most independent garages.

If you end up paying more than you need to, without having been given a choice, you do feel ripped off and you may well complain about this which may have something to do with the level of complaints about dealership services (on a par when I last looked with independent garages…).

So all in all, anything that gives the customer more choice of value for money and quality garage Who is best to repair your car?services is a good thing?

Yes, of course but I believe there is still a grey area here from the female motorist’s point of view…

On the one hand car manufacturers can no longer make a warranty conditional on having oil changed or other services carried out in authorised garages. That’s the good news.

But car manufacturers can still ‘request’ repairs that are covered by the warranty and to be paid for by the manufacturer be carried out within the authorised manufacturer’s network.

Of course this is understandable as it is in the best interest of manufacturers that their franchised dealers do well in this area. I THINK this means that all oil and routine car services can now be carried out where the customer wants the work done but that when there is a necessary repair (examples invited to help me understand some circumstances here) and the manufacturer is clearly liable, that the manufacturer should be able to ‘dictate’ where the work is done.

But who is to define what happens if the manufacturer ‘requests’ an authorised repairer which isn’t as convenient for the customer as another? Isn’t the word ‘dictate’ a more honest representation of what is likely to be the case?

And isn’t it also likely that dealerships have a vested interest in muddying the waters here a tad by suggesting to female motorists (who are likely to be confused here) that the definition of ‘repairs’ within a warranty period includes servicing to maintain that warranty. This would be an easy message to convey even though the easiest way is for them to compete with independent garages would be on the basis of

  • ATA qualifications
  • high customer service levels/facilities
  • female friendly garage standards (FOXY Choice plug but definitely relevant here)

I’d also like to know who in the UK motor industry is responsible for telling women drivers about this change to their car servicing rights?

And how are we expected to find out? I haven’t read anything about this in the sort of publications I read 😉 although if it was titled ‘Block Exemption’ (its catchy EU nom de plume) I wouldn’t read on any further…

FOXY

Find out about genuinely good and female friendly garages for your MOT, car servicing and repair work.

Do women drivers haggle in garages?

I have just read an interesting article claiming that independent garages are better equipped to cope wth the effects of the recession than main franchised dealers.

According to Colin Bruder of Network Automotive, independent garages are more flexible and more likely to react to women drivers haggling for a lower price.

And if the business wants to introduce a discount to target a seasonal offer, for example, the Service Manager in a new car dealership is less likely to have the authority to do this whereas the independent garage is more likely to be run by the business owner who can make her/his mind up there and then.

I found this interesting for two reasons; firstly because the industry has been encouraged to work to a fixed price menu (what irony if they are now expected to better this…) and secondly I can’t think of a woman driver who would haggle in a garage with a fixed price – we’d rather shop around and then pick the best value deal based on a range of choices.

I don’t imagine that many female motorists will haggle in this situation,  so perhaps Colin’s theory is based on male experience?

But I do agree that the independent garage is in a better situation to market/promote seasonal deals in the local media and online. I speak to many staff in main dealers, often part of a dealership group, who are not interested in any marketing opportunity that might work for them if it costs them money regardless of the outcome. Either they haven’t got the budget or the interest in doing something different even if this means scoring over their local competitors.  It’s a form of blinkered complacency which is misplaced in a recession, especially when their neighbours are seeing the opportunity and grabbing it ahead of them.

I also know this is true because FOXY Choice subscribers are invited to make an offer to members of FOXY Lady Drivers Club and many more independents than franchised dealerships have taken this up.

Needless to say there is much that can be done rather than dropping the price – added value services can be marketed more effectively such as local car collection and delivery and a free wash and vac with every car servicing/repair. I have just been talking to Falkland Performance in Glenrothes and they have a deal with the local gym for their women drivers – that’s something different and to be celebrated.

I’d add to Colin’s theory that FOXY finds that flexibility is in the mind of the business owner and/or the Dealer Principal. Those who are fearful of the current climate and doing nothing are letting their competitors steal an advantage whereas those realists that know there will be a buoyant business tomorrow, are planning to be ahead of the game when tomorrow arrives. Good on the creative business thinkers – I wish them the success that will surely come their way!

And as I keep on saying, there is a place for independents and franchised dealerships to carry out MOT, car servicing and repair work because as long as the female customer has choice, she can choose which one she prefers based on her car, budget and expected service levels.

Long live both the independents and the franchised dealers and may competition prevail to keep prices down for all customers and add value for women drivers in particular.

FOXY

“My formula for success is rise early, work late and strike oil.” JP Getty.