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  • Used car dealer work

    Posted by Aaron Schreur on February 13, 2012 at 8:39 pm

    Do any of you do work for used car dealers? If so what kind of deals are you cutting them(percentage)? I have been working for one for a couple years now and have just been charging labor and the parts go on the car lots accounts. I have covered some of the lost parts profits by a higher than normal hourly rate but I am starting to think it might be to good of a deal for him. There is always a backlog of cars to work on which is very nice when the walk in customers slow down.

    Alan Ollie replied 10 years, 2 months ago 9 Members · 12 Replies
  • 12 Replies
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  • Tom Ham

    Member
    February 15, 2012 at 8:32 pm

    Aaron Schreur wrote:

    > Do any of you do work for used car dealers? If so what kind of deals are you cutting them(percentage)? I have been working for one for a couple years now and have just been charging labor and the parts go on the car lots accounts. I have covered some of the lost parts profits by a higher than normal hourly rate but I am starting to think it might be to good of a deal for him. There is always a backlog of cars to work on which is very nice when the walk in customers slow down.

    Once in a great while when a very complex issue arises a dealer will bring us a car. But, that’s about it. I believe there is a nearly endless supply of underground/illegal shops around here that get most of that type of work.

  • rhopp

    Member
    February 18, 2012 at 7:45 pm

    For what it’s worth, we service import vehicles for many of the local

    dealers. No discounts, just clear, priority service. Small town, no

    import dealers, just the big three.

  • Aaron Schreur

    Member
    February 20, 2012 at 11:55 pm

    Are they always trying to beat you up on your prices?

  • rhopp

    Member
    February 21, 2012 at 2:54 am

    They ARE used car dealers, after all. We seem to be getting them

    trained. We’ll negotiate a little, depending on current work load.

  • garythomas

    Member
    February 21, 2012 at 8:24 pm

    Almost all dealers want it as cheap as possible and we try and help them out. The vehicle must be dropped off so we may do the work on our slow time. It helps fill any dead time. We fortunately buy our main parts by the pallet loads, so we have some room on pricing.

  • bilthemech

    Member
    February 21, 2012 at 8:55 pm

    We do a lot of used car repair for local dealers at our fleet rate and it has worked out very well for us. They are usually not in a hurry and because it is the fleet rate they never haggle price. It has worked out to be about 5% of our work.

  • deanh612

    Member
    February 22, 2012 at 2:37 pm

    We do not offer any special pricing to dealers. Mainly because as most have already stated pricing is usually an issue. We focus on our target customers and great service.The few dealer jobs we do take on is because we can still beat the new car dealer service prices without cutting profit on labor or parts. We are a European shop so there are a limited number of shops that are equipped to handle what we do.

  • nctransmission

    Member
    February 24, 2012 at 9:34 pm

    I have two or three used car lots around here that will seek out

    transmission problems at the auction and bring them to me before putting

    it on the lot. We make VERY little on those projects, but we get a fair

    amount of referrals and maintain some work during slower times.

    I have no luck with the pricing with these guys, they have the same

    software I do, and they buy the LEAST expensive parts they can to throw

    at it…

  • deanh612

    Member
    February 24, 2012 at 10:02 pm

    I understand why you would want these type of jobs to fill in slow times but I do not understand why you would let them dictate your pricing and profit margins. I am interested in the business strategy

    you are employing.

  • Alan Ollie

    Member
    February 28, 2012 at 9:59 pm

    We are not dealer friendly. I have bought a bunch of broken cars from dealers who call and try to have us fix problems other shops made.

    My friend once said If you want to loose money do used car dealer work.

    There are a few dealers we do work for.Carmax has sent us 3-4 VW and Audis last year.

  • gcauto

    Member
    April 17, 2012 at 12:12 pm

    We have (2) local used car lots we do work for, (1) we’ve been doing business with since we opened our doors and the second one we just started working with last year. Both have been very easy to deal with and they don’t question our pricing. If they can do the work cheaper themselves, they just come and pick up the vehicle. We fill in our slow times with this work and it works out really well.

  • Alan Ollie

    Member
    April 17, 2012 at 4:43 pm

    We always tell Used car dealer’s we are not very Dealer Friendly

    and will only fix the car correctly. No half ass repairs.

    Wow all the car dealers down here only bring us the cars they already sent to many other shops and could not fix them.

    Thant we never get this “very easy to deal with and they don’t question our pricing”.