Loan Car

[macdub]

Hi Guys..
I just dropped my car for first service this morning. I have been charged 36$ for a loan car. Just wondering if this is normal as I think its bit pricey. I know VW being a premium brand, this could be normal but I am coming from toyota,nissan camp and they usually charge 10$. I would have thought VW would be 20$ max..

thanks

[Darks RS]

Could be worse, i remember paying in excess of $50 @ honda a few years ago.

I tend to only ask when the car is overnight, or when they stuff me up (my CC went in twice last week as they ordered the wrong part) so therefore I made them give me a car foc (albeit a Barina in the end, but didn't care as I needed a car)

[jamesatfish]

I think it's more a dealer thing than a particular manufacturer thing, and even then the arrangements differ between customers.

I know both Canberra VW dealerships offer free loan vehicles if you purchased your car from them, though some times they require you to book the loan car through the sales team rather than the service dept to get the deal which seems really silly - I don't know why it's too hard for them to just make a note on your file with the dealership that you're entitled to a fee loan car. I switched over to an independent VW specialist when one of those dealerships tried to charge me for a loan car because I hadn't booked the service through the salesman who sold me the car (who actually no longer worked at the dealership).

Neither Porsche dealership I've used charge for loan cars; the ACT Merc dealer offers free loan cars regardless of where you purchased your vehicle but the Alexandria (NSW) dealership only provides a 'free' loan car as long as you pay a ~$30 'fuel and admin fee'.

One dealership I use in Sydney doesn't offer loan cars but they will collect and return when the service work is done - apparently this is a really common model in the UK and it's a shame it's not more common here.

[Finance_Analyst]

Free loan cars are the biggest scam in car retailing IMO.

If you don't pay for it, they add it onto the cost of the service. The free breakfast in the morning while you wait and car wash (which actually causes more damage to your paintwork with those morons not washing it down properly) are all ways to make the customer think they are getting value but you are paying for it (often at hugely inflated margins). These dealers are not running a Salvation Army hostel.... So NEVER think you are getting a free lunch (first rule I learnt in business school)

[Ryan_R]

I was given the option to pay $25 or to replace the fuel I used myself. Might take more time, but I saved $20.

[Finance_Analyst]

I just catch the train to and from the service centre. Costs $6.30 all up!

[Johnbu]

Free loan cars are the biggest scam in car retailing IMO.

If you don't pay for it, they add it onto the cost of the service. The free breakfast in the morning while you wait and car wash (which actually causes more damage to your paintwork with those morons not washing it down properly) are all ways to make the customer think they are getting value but you are paying for it (often at hugely inflated margins). These dealers are not running a Salvation Army hostel.... So NEVER think you are getting a free lunch (first rule I learnt in business school)

If the service centre offer you one for free (I've found only VW have charged for one) and you don't take up the offer- you're not going to get a discount.

I find it amusing, actually insulting that VW charge for a hire car when their services cost so much.



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[Finance_Analyst]

If the service centre offer you one for free (I've found only VW have charged for one) and you don't take up the offer- you're not going to get a discount.

I find it amusing, actually insulting that VW charge for a hire car when their services cost so much.



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Of course - that is my point. It is perceived to be 'good customer service' for suckers, but behind that veil, it is a cunning way to make them look better. Either way, my VW independant does not offer loan cars, and the local dealer can do city drop off.

Bottom line - you never get something for nothing. Life is a zero sum game.

[jamesatfish]

Of course - that is my point. It is perceived to be 'good customer service' for suckers, but behind that veil, it is a cunning way to make them look better. Either way, my VW independant does not offer loan cars, and the local dealer can do city drop off.

Bottom line - you never get something for nothing. Life is a zero sum game.

I'm clearly a sucker - providing a free loan car is indeed good customer service in my mind.

I'm also not sure that a free loan car is always aligned with increased service costs. I did a phone-around of my 3 closest Merc dealers last week to figure out where to get my wife's car serviced, and whilst all 3 quoted prices within $10 for the standard first service only 2 of the dealers offered a free loan car.

Whilst the provision of a free loan car isn't my main reason for selecting a particular service centre, when comparing otherwise equal options it is certainly a contributing factor. Indeed I ended up booking the service at one of the dealers offering the free loan car even though I won't actually be using the car on this occasion.

[phantomcamel]

Hi Guys..
I just dropped my car for first service this morning. I have been charged 36$ for a loan car. Just wondering if this is normal as I think its bit pricey. I know VW being a premium brand, this could be normal but I am coming from toyota,nissan camp and they usually charge 10$. I would have thought VW would be 20$ max..

thanks

An average cost. Dealerships have only a couple of loaners as it is not feasible to run a fleet of loan cars as there is limited DEMO support.
It generally is a "first come, first served" basis. If you have a good relationship with the sales person & are a loyal customer you are more likely to get someones drive-car for the day then someone who has shopped for the best price around the whole of OZ. margins in VWs are not what you may think...

[Finance_Analyst]

I'm clearly a sucker - providing a free loan car is indeed good customer service in my mind.

I'm also not sure that a free loan car is always aligned with increased service costs. I did a phone-around of my 3 closest Merc dealers last week to figure out where to get my wife's car serviced, and whilst all 3 quoted prices within $10 for the standard first service only 2 of the dealers offered a free loan car.

Whilst the provision of a free loan car isn't my main reason for selecting a particular service centre, when comparing otherwise equal options it is certainly a contributing factor. Indeed I ended up booking the service at one of the dealers offering the free loan car even though I won't actually be using the car on this occasion.

Well, given it is a Merc dealer, the servicing is way overpriced anyway (no different to when I had an SLK). They get you everywhere with Merc and BMW, from the initial purchase price, to servicing and finally spare parts and their resale values are pretty appalling too. You are probably lucky the others didn't charge much more - although I suspect that like for like, they will find 'something else' that needs replacing to recoup the cost which is kinda dodgy if not critical (happens more often than one thinks).

As I said earlier, these dealers ain't running a charity. People are very naive/stupid if they think so and someone (if not always yourself directly if you know what you are doing) is paying for it one way or the other (e.g. $40 to replace windscreen wipers, $20 to replace a battery (cost of battery = $3) in the car key?????).

But hey, we live in a free market economy and these guys are running a business to make lots of $$$ and I am all for that (otherwise I would have studied law/social work and not commerce). Just don't believe that good customer service = charity case.

[jamesatfish]

Well, given it is a Merc dealer, the servicing is way overpriced anyway (no different to when I had an SLK). They get you everywhere with Merc and BMW, from the initial purchase price, to servicing and finally spare parts and their resale values are pretty appalling too. You are probably lucky the others didn't charge much more - although I suspect that like for like, they will find 'something else' that needs replacing to recoup the cost which is kinda dodgy if not critical (happens more often than one thinks).

No argument that the Merc dealer is charging a higher rate for their service work than my local VW dealership does - but then again I'd expect that servicing a $170K vehicle with all sorts of electronic gizmos would require a better skilled, higher trained technician than a $30K Polo. It also reflects the increased capital requirements for servicing certain types of vehicles - things like manufacturer specific diagnostic and programming equipment.

I'm not suggesting the dealership is giving me a loan car out of a sense of charity - of course I realise it's a commercial decision where the benefits of providing the loaner service to customers outweigh the costs of maintaining the loan car fleet. In my situation it's more about the fact that I consider the availability of a free loan car to be something that comes hand-in-hand with vehicle ownership, and I'd prefer that dealers factored this service into their standard pricing rather than tacking on extra charges.

It's an economically irrational position for sure, but I would prefer to use a dealer who charged $530 for a service including a 'free' loan car rather than a dealer who charged $500 for the service then slugged me $30 for the use of the loaner.

[elephino]

Of course - that is my point. It is perceived to be 'good customer service' for suckers, but behind that veil, it is a cunning way to make them look better. Either way, my VW independant does not offer loan cars, and the local dealer can do city drop off.

Bottom line - you never get something for nothing. Life is a zero sum game.

It depends on how you look at it. For someone who requires a loan car, it's cheaper for them to get a free one with the service as the dealership wouldn't be adding the full $36 (or whatever they'd charge) to the service when offered free.

While saying that, I haven't seen a (paid) loan car from a dealer's service centre under $50 for ages, so $36 is good.

[GTi Bhoy]

When you are doing the deal to buy the car make free loan car for service part of the deal.
This is very common and just incase the sales person leaves or you think they might try and pull a fast one when it comes to giving you your free car always take a copy of the order form which states FREE LOAN CAR FOR EVERY SERVICE/WARRANTY BOOKING.
$36 is not bad.
Replace fuel used is also very common and fair.

[Rockman]

At Klosters you have to book a car, or they will drop you off at work, and pick you up later.



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