I agree that dealers are stuck with high overhead as requested by their contract with the manufacturer. For many years I dealt with a really good indy who was located in a low cost area in an industrial park. His shop rates were about half of a dealer’s.
Some years ago when I took my car (Chevy Caprice) into a GM dealer (because they were close by) with the typical heater core leak (fogged window) the dealer said they would need most of the afternoon to figure out what the problem was. I got on my cell phone and my indy friend told me exactly what the problem was and how many hours it would take to fix it.
But that just makes asemaster's point more relevant. The independents are leaving cash on the table if they don't take advantage of their competition's need to charge so much more/hour to pay for their location advantage.
Completely disagree with that. Dealers NEED drive-by customers. Mechanics don’t. Dealers are in the business of selling cars…they fix them too…but that’s not their main business. I know a couple dealers in MA where the dealer has two locations. One for car sales- right on the main drag…and their garage is a couple blocks away.
Dealers are in the business of selling cars…they fix them too…but that’s not their main business.
So what, that’s not the point. The point is, people needing service have basically two options; dealers and independents. As long as the independents are less than the dealer, they will continue to have a steady customer base. If the only other option is a dealer, then why would independents continue to only charge 50% of what the dealer charges? That’s just leaving money on the table. You just as easily charge 75-80% and still have the same customer base…
Reason why people don’t go to the dealer is COST. And if the cost is close enough…they’ll choose the dealer because of a misconceived notion the dealer mechanics know more about their vehicle and can fix it better. So Independents have to entice them to choose them over the dealer…easiest way is lower cost…and much lower cost gets more customers at least looking at them. Some of the independents do charge close to the dealer…but I’ve found that their service/knowledge isn’t any better then a good small independent who’s charging less.
OK, so now we agree on the premise, let’s talk about the magnitude. As I said a couple of times now, a 20% savings would be plenty to entice people. You don’t need to be 50%, that’s just giving away money. For example, you’ve found someone who does a good job for less than even the other independents. I’m betting you would still go there if he was priced the SAME as the other independents because he is good. Therefore, he is actually losing money compared to his competition. His reputation will drive more business than selling himself short financially…
OK, so now we agree on the premise, let's talk about the magnitude. As I said a couple of times now, a 20% savings would be plenty to entice people.
Let’s get a couple things straight…I’m NOT the one setting the rates…all you’re debating is to WHY they choose the rates. There could be many reasons. I’m just attesting to what the rates ARE…These are the FACTS…As to why the dealer is at $175 and the Independents are at $90…I suspect they know what their customer acceptance price point is…and what other independents in the area charge.
I am not as concerned about the cost of a repair as I am about having the job done right. If I have a,specific problem and I know that there is,a good mechanic at the dealer, I’ll go to the dealer and request that that mechanic do the job even if I have to wait a couple of days. Years ago, there was a Sunoco station near the campus where I taught. There was an outstanding mechanic who did the work. However, if it was a job too big to be handled in the service station, he knew who would do the job and do it right and the would refer me to that person. That Sunoco station is long gone and the mechanic past away a number of years ago. Today, for me, the cost of the job is secondary. I soon forget the cost if the job is done right. However, no matter how cheap, if the job is botched, I don’t forget, no matter how cheap the price.
I agree with many here. The cabin filter is PROBABLY a very simple and easy job for most people. Watch videos on youtube and save yourself $50-60 on that job.
The rest of the services don’t seem out of line at all. That timing belt change is a good deal in this neck of the woods where labor rates are not all that high. It is low enough that I would be concerned about them not changing all the idlers, tensioner, etc. I would make sure these are done at the same time as well as the water pump. You will lose 1/2 or more the coolant anyway during the water pump job so have the coolant changed then.
I do not know what the change interval is on the timing belt for this car but Hyundais are typically interference engines. Neglecting this service and having the belt break can turn a $400 job into a $4000 one. You don’t want to change just the belt. If a tensioner or idler locks up or breaks, you risk the same type of catastrophic failure.
all you’re debating is to WHY they choose the rates
Finally. Yes, that was the crux of it from the get go when asemaster initially brought it up.
I suspect they know what their customer acceptance price point is…and what other independents in the area charge
OK Mike, I can see that a reasoned discussion as to the wisdom of those choices is beyond your desire to interact on the topic…'nuf said.
OK Mike, I can see that a reasoned discussion as to the wisdom of those choices is beyond your desire to interact on the topic.
Anything we debate is a GUESS. That’s fine. After thinking about the reason for the rate differences for a while…I suspect the price is so much lower then the dealer is because they have to compete with places like PepBoys and JiffyLube which do repairs and at very low rates. Competition is probably the key…but the independents are NOT competing with the dealer…just each other. Many people go to the dealer no matter what…because of a misconceived conception that the dealer is BETTER. There are people who buy oil from the dealer thinking the manufacturer designed and built the oil specifically for their vehicle.
Most dealerships have four or five departments–each with its own manager. The departments are 1) new car sales, 2) used car sales, 3) service, 4) parts,and somerimes, 5) body shop. Each department is expected to make a profit. The used car manager may farm out work on a used car if the job can be done for less than the in-house service dept
The service department may run specials on oil changes. The service departments that I know will usually service any make. My dad often had the DeSoto/Plymouth dealer work on his Buick. Service Dept’s need to show a profit. The used car manager gets cars from other soirces, than new car tradeins.
I had a good friend that bought a Mercedes Benz 240 D back in 1977. The dealer was 60 miles away in a big city. My friend would schedule an appointment with the dealer, drive down in the morning and leave the car at the dealer. The dealer would give them a ride downtown where my friend and his wife would eat at a nice restaurant, go shopping or take in a movie, and then call the dealer who would come pick them up. They would then go to another nice restaury for dinner, then go to a play or concert before driving back home. Mrs. Triedaq liked that idea so when I took our vehicle to be serviced, we would drive a mile to to our independent shop, walked to the McDonald’s next door and had lunch while the car was being serviced and then went back to work. It wasn’t as extravagant as what our friends did, but I saved money.
To many people, anyplace that touches a car is just like any other place. These people only shop by price. As I stated earlier, I can lift the hood on my car at a gas station to check the oil and I have had people come over and think I am a real mechanic.
Labor rate variations can also be looked at as a one size does not fill in every situation due to so many variables.
There was a large and about the only remaining full service gas station near me that had a labor rate half that of several car dealers who were less than a mile away. They even had an alignment rack, computer diagnostics, A/C recovery machine, etc.
Out of the blue they jumped their labor rate by 45% overnight and closed the gap with the dealers.
Their service work died. The alignment rack just collected dust and became a parts and fluid storage shelf.
They were charging 25 bucks to mount and balance ONE tire which was less than the dealers and way less than even TBA stores like Wal Mart.
They priced themselves right into oblivion and shut down several years ago due to no business other than a random flat tire fix. A month ago the building was dozed down and is now in the process of becoming a convenience store location with gas pumps.
I find it hard to believe the $175/hr for dealers in NH unless maybe a Euro or other overpriced marque?
I happen to live in expensive area for NH(coastal). Locally our Acura dealer charges $110/hr for example and the Subaru $110/hr. I found a very inexpensive Subaru specialist who charges $65/hr and does work on my Acura beyond the Subaru.