Fixed Ops Journal - June 2018 - F34

FIXED OPS JOURNAL

FEEDBACK

For dealer loyalists, shop knowledge beats price

P

rice doesn't keep vehicle owners from returning to the dealership for service after their factory warranty expires.
At least that's what the owners said in the latest survey conducted for Fixed Ops Journal by DealerRater.com.
In fact, 85 percent of respondents said they expect to go back to the
dealership for service after the warranty ends, vs. 15 percent who said
they don't.
Only 1 percent cited price as the reason they won't return - with no
vehicle brand reaching 3 percent - whereas 4 percent cited a bad experience at the dealership as the reason they won't come back.
More positively, 47 percent of respondents cited the dealership's technical knowledge of the vehicle as their reason for coming back after the
warranty expires. Another 29 percent cited a "good relationship" with
the service department and/or the fact that they've been pleased with
the work the shop has done.
Contrary to what you might have expected, luxury-brand dealerships
didn't stand out for retaining customers post-warranty because of their
technical knowledge of the vehicle. Rather, the top brands whose customers cited tech expertise as a reason to return to the dealership were
Kia and Subaru, with 54 percent of respondents.
At the other end of the scale, 40 percent of Ford customers cited technical knowledge as a reason to come back.

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PAGE 34

JUNE 2018

Infiniti led in good relations and/or consumers' satisfaction with work
done, with 35 percent of its customers citing those reasons to stick with
the dealership after the warranty is up. Audi and Volkswagen were next,
at 33 percent.
At the same time, 24 percent of Chrysler customers offered similar
reasons, followed by BMW and Ram customers, at 25 percent, and Kia
and Subaru customers, at 26 percent.
Overall, the brands most likely to get post-warranty business, with 88
percent of their customers saying they expect to return to the dealership
then, were Hyundai, Kia, Subaru, Toyota and Volkswagen.
Least likely? Chrysler and Ram were at 21 percent, and BMW at 22 percent.
- James B. Treece

Post-warranty plans

you expect to go to the dealership for service after your
Q: Dovehicle's
warranty expires?
1. Yes, because they know my vehicle and its technology best
2. Yes, because I have a good relationship with the folks in the
service department and/or have been pleased with the work done
here
3. Yes, for other reasons
4. No, because I've had a bad experience here
5. No, because of price
6. No, for other reasons
7. Yes (all responses)
8. No (all responses)
All brands
Acura
Audi
BMW
Buick
Chevrolet
Chrysler
Dodge
Ford
GMC
Honda
Hyundai
Infiniti
Jeep
Kia
Lexus
Mazda
Mercedes-Benz
Nissan
Ram
Subaru
Toyota
Volkswagen

1.
47%
46
44
46
44
46
45
43
40
44
48
49
46
48
54
48
49
46
48
42
54
49
45

2.
29%
31
33
25
29
27
24
30
30
27
32
29
35
27
26
29
30
32
30
25
26
31
33

3.
9%
7
9
7
10
11
10
10
10
10
7
10
6
10
8
7
8
7
9
12
8
8
1

4.
4%
3
4
6
4
4
7
3
5
3
3
3
3
4
3
4
3
5
3
6
3
3
3

5.
1%
2
1
2
1
1
0
1
1
0
2
1
0
1
1
2
1
1
1
2
1
1
1

6.
10%
11
9
14
12
11
14
12
13
15
8
8
10
10
8
10
8
9
9
13
8
8
8

Note: List includes brands with more than 200 respondents.
Source: DealerRater survey conducted March 12-18; 17,678 respondents

7.
85%
84
86
78
83
85
79
83
81
81
87
88
87
85
88
84
87
85
87
79
88
88
88

8.
15%
16
14
22
17
15
21
17
19
19
13
12
13
15
12
16
13
15
13
21
12
12
12
http://www.DealerRater.com
Table of Contents for the Digital Edition of Fixed Ops Journal - June 2018
