Some explanations for the top complaints that consumers have with auto dealerships
Customers are quick to praise franchised car dealerships when they are satisfied with the products and services they purchase. Most dealerships receive dozens of letters and emails every month from customers who wish to acknowledge their positive buying (or service) experience.
But not all customers are satisfied all of the time. Dealers regularly hear from those who have legitimate complaints when products and services fail to meet their expectations.
Here’s a list of 10 of the most common customer complaints, in no particular order, based on a survey that I conducted with my colleagues in the retail car industry.
Not enough knowledgeable salespeople. Consumers are better educated about vehicles today than ever before, and they aren’t impressed with salespeople who lack adequate product knowledge. Consumers also don’t like waiting around for salespeople when they’re interested in purchasing a vehicle.
New vehicles that already have 60 to 100 km. There’s an assumption that all brand new vehicles should have zero km on them when a customer takes delivery. This isn’t feasible, given that vehicles are often test driven and moved around the lot.
Purchase or lease incentives should apply to all vehicles. Customers feel that incentives (low interest rates, rebates, etc.) should apply across the board on new and pre-owned vehicles. Manufacturers and dealerships have many reasons for discounting some vehicles more than others.
Interest rates are higher on used vehicles than on new. That’s because used vehicles typically have a shorter lifespan than new vehicles, and because banks assume greater risk when extending credit on used vehicles. But dealerships and manufacturers will sometimes offer low interest rates and extended quality guarantees on used vehicles.
Vehicles aren’t ready when promised. I appreciate how frustrating it is when customers’ vehicles aren’t fixed on time. Service departments do their best to manage their workflows, but even the most organized and well-oiled departments struggle with this issue from time to time.
Vehicles aren’t fixed right the first time. This makes customers really upset and understandably so. Customers should expect their vehicles to be repaired correctly the first time.
Unfortunately, even with extensive training and large investments in technology, the diagnostic process is not foolproof. In most cases, the more information about a problem that you can offer the service adviser, the better your chances of getting your vehicle diagnosed properly the first time.
Parts departments don’t stock all parts. Keeping a complete inventory of parts for all makes and models would be logistically impossible and prohibitively expensive. But parts that aren’t in stock can be easily ordered (in person or online) and delivered usually within a day or two.
Not all makes and models are in stock. Customers are sometimes disappointed to learn that dealerships don’t have the vehicle they’re looking for sitting on the lot. It would be prohibitively expensive and impractical for dealers to keep every model on the lot.
Automated voice messaging systems. These systems are annoying and impersonal, but they are essential at larger dealerships, which receive hundreds of phone calls per day.
Why don’t dealerships keep longer hours? Most sales departments are open until 9 p.m. on weeknights (until 6 p.m. Friday and Saturday), and service departments are open Monday to Friday. Most service departments offer extended hours throughout the week and many are open on Saturdays.
Years ago, a common complaint was about the lack of disclosure in dealership advertising. The new Motor Vehicle Dealers Act 2002 (which became law on Jan. 1 and is enforced by the Ontario Motor Vehicle Industry Council) now ensures that dealership advertising is in full compliance with all of the laws governing disclosure.
This column represents the views of TADA, email president@tada.ca or visit www.tada.ca
Ron Loveys, TADA president, TORONTO STAR, Mar 06, 2010