Warranty Work Has Decreased, So Domestic Dealers Pursue Customer-Paid Repairs, Upkeep
Warranty work has dropped so significantly at domestic dealerships today that many are hustling customer-pay repair and maintenance work to compensate for the decline, according to the Dallas Morning News.
"I could see the handwriting on the wall," said Jerry Reynolds, managing partner of Prestige Ford in Garland, Texas, and the owner of Prestige Lincoln Mercury and Prestige Mazda in Dallas. Three years ago, he met with his service staff at the Ford dealership and said, "We have to really get into the customer-pay business."
Prestige and other dealers are repairing fleets, selling tires and batteries, and doing more quick, low-price oil changes and brake jobs. Friendly Chevrolet in Dallas is offering tires to customers who sign up for regular maintenance, according to the Dallas Morning News.
Ford Motor Co. and General Motors Corp. now
have special credit cards for service work. On Monday, Ford began a national dealership service promotion, touting an oil change, tire
rotation, and brake and battery check for $34.95, the Morning News reported.
"It's a trend that has to be responded to," Paul Taylor, chief economist at the National
Automobile Dealers Association (NADA), said of the drop in warranty work. "It's on the radar screen and getting a lot of attention."
On average, only one in four U.S. drivers returns to the dealership for maintenance and
repair work after the vehicle warranty has expired. Most say that dealerships are more expensive than independent or chain garages - a
perception that automakers are trying to change, according to the Morning News.
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