Do Car Main dealers rip people off ?

[vinylnvalves]

Public liability and material cover are two different things…. Most sports clubs have the former but not the later. The company I work for doesn’t cover the buildings or contents, as over a decade or two the insurance costs out weigh the rebuild costs.

[Nick]

Yes, but in this case its about cover for customers cars while they are under the control of the business. I would expect that to be very different from the insurance on the actual building the cars were in at the time of the flood.

Though nothing seems to be about the topic of the thread. FWIW.

[pre65]

Though nothing seems to be about the topic of the thread. FWIW.

When I first read the part about the I Pace battery, not actually being on the car, the first word that came into my mind was ----- skulduggery.

[Ali Tait]

Margins are undoubtedly thin on the sales of new cars, where manufacturers make money is on servicing and parts. I usually do most work required on my car myself, but out of interest a few years ago I contacted my local BMW garage for a price to replace the front pads and discs. The quote was pennies short of one thousand pounds. Even given my car has the same brakes as the M5 I thought that just a tad excessive..

I perused Ebay and bought OEM pads and discs for £215- i.e. the exact parts the dealer would have fitted. Took me about two hours to fit them, given I’d never done them on this car before and I don’t have the required power tools or a ramp. Confident I’ll half that time at least the next time. No doubt a main dealer will do them in even less time given they have all the facilities and do things like this on a daily basis.

Piss is definitely taken on parts and labour prices.

[Nick]

Though nothing seems to be about the topic of the thread. FWIW.

When I first read the part about the I Pace battery, not actually being on the car, the first word that came into my mind was ----- skulduggery.

Yes, but that's very much a unique one off event and response to that event, nothing that would indicate something that main dealers in general do. If your topic was "Can a main dealer rip people off" or even "Has a mail dealer ripped people off", then that would be a valid example, and would make the simple answer to your question "yes".

Ali's example does now point to your general question. You worked for a dealer, did you (or your employer) rip people off? What does ripping people off look like? Could a main dealer justify the difference in pricing that Ali mentions be justified?

[Nick]

This looks relevant:

https://www.fleetnews.co.uk/news/fleet- ... 30-an-hour

The maximum cost of an hour’s work for a garage mechanic now stands at more than £230, according to a nationwide study by automotive service and repair start-up Motoreasy.

Overall, the UK average labour rate – combining main dealers, independent workshops and fast-fit outlets – is £67 an hour.

Analysis of 6,000 garages from across the UK found that, on average, Surrey is the most expensive place to have work done to your car, with an average hourly rate of just over £81. At the other end of the scale, Scottish county Selkirkshire has the cheapest average at £49.69.

The highest individual hourly labour rate of £234 an hour was found at a prestige sportscar manufacturer’s dealership in Reading. The cheapest, offered by an independent workshop in Manchester, was just £36.

[Ali Tait]

There are also many examples of premium marques price gouging, easy to find if you look. Identical parts fitted to Lamborghinis and other WAG group cars, or Aston Martin and Ford parts- the price differences are vast.

[Nick]

There are also many examples of premium marques price gouging, easy to find if you look. Identical parts fitted to Lamborghinis and other WAG group cars, or Aston Martin and Ford parts- the price differences are vast.

Yep, but we have both been to HiFi shows. No real difference to my mind. I guess at least those car makers do have race departments that compete against the clock with each other which is more than audio equipment makers do. At least car makers do actually innovate a bit sometimes.

[Ray P]

Isn't one of the pillars of free-market economics that prices reflect what the market will stand?

[Ali Tait]

There are also many examples of premium marques price gouging, easy to find if you look. Identical parts fitted to Lamborghinis and other WAG group cars, or Aston Martin and Ford parts- the price differences are vast.

Yep, but we have both been to HiFi shows. No real difference to my mind. I guess at least those car makers do have race departments that compete against the clock with each other which is more than audio equipment makers do. At least car makers do actually innovate a bit sometimes.

Yes true Nick, you could say the same for many industries I suppose.

[Nick]

Isn't one of the pillars of free-market economics that prices reflect what the market will stand?

I guess, but another pillar would be the equivalence of the products, so if back street garage could provide the same service as a dealer then the prices could be compared in the way you describe. Where that falls down is when the manufacturer artificially inserts reasons why the dealer is the only one that can do the work.

And of course the main failing (it seems to me) with just about all economics is that it assumes that the players act rationally at all times.

[Greg]

Returning to this point from Phil’s original post.

Now, today I read of a JLR dealer in Derby that got flooded, and customers were told that they would have to deal with their own insurance to get flood damaged compensation.

I thought that was a bit naff.

In my view, as customers vehicles have been reduced into the possession and control of the company, I believe the liability remains with them and their insurers. It is worth considering that had a vehicle owner recovered their vehicle to avoid flood damage without the knowledge or agreement of the company, they would be liable to a criminal charge of ‘Take and Drive Away’ under the (stated case) provisions of the Theft Act 1968 and Road Traffic Act 1988.

[vinylnvalves]

The big irony in this is that any mechanic worth his salt, sets up on his own after a few years working for the main dealers. Around us the independent specialists are better than the main dealers. The VAG one I use, has access to VAG uk for parts too.

The main dealer quoted me £1400 + vat to have a tow bar fitted onto my new car……. A two day job allegedly. Day 1 - driving it to indespension Day 2 fetch back and valetI assume….

[pre65]

I'm not sure how (or why) you would prosecute someone for driving away in a vehicle they own, but then, I'm not an expert in the law.

When I started at a motor factors in motor trade (late 60s) the vast majority of spare parts that we were asked to supply were for British vehicles. The major suppliers to the UK motor vehicle manufacturers also supplied the aftermarket. So, household names (then) like Lockheed, Girling, Borg & Beck provided most suppliers with genuine brake and clutch parts, and therefore quality was assured, and price comparisons with main dealers were valid.
When you come to suppliers who make (according to them) OE quality replacement parts the waters start to muddy.

Replacement parts, and the quality of them really needs a separate topic.

[Greg]

I'm not sure how (or why) you would prosecute someone for driving away in a vehicle they own, but then, I'm not an expert in the law.

You may not but I can assure you it is stated case law under those Acts and there have been prosecutions in the past. You can look it up. My emphasis, however is that this law adds weight onto the liability of the dealer and their insurer.