Dealership Talk - Share those burning questions

M

Mike1

Guest
Morning Everyone

Since there has been a bit of dealer loving and hating going about lately I thought this would be a great opportunity to dismiss a few of those rumours going about as well as put an end to any disputes between our members and their dealers.

I would like this to be an open forum that encourages active discussions and constructive conversation.

I would like this to be a place where our customers can talk about the fantastic service they receive as well as the challenges facing dealerships.

We can mention dealer names - However no abuse will be tolerated.

I will try and be as open and honest as I can and I will try and answer every question possible. There are some questions which are off limits - I will tell you when we get them.

So who has a burning desire to ask me a question?

Mike

 

msm

Well-known member
:thumbsup: for taking this initiative.

My question: Can you shed some light on the "runflat" issue. Get lots of different views, where some dealers say it's ok to ditch them while others state it will void your MP. Care to shed some light on the subject or provide some insight.
 

Twinz

Forum - Support
Staff member
Good thread starter Mike. The only issue i have with all our dealerships is the exorbitant cost of parts compared to our UK/US counterparts. Other than that i have found cape town dealerships a friendly experience and great service from most but one dealer in particular has excelled all the time.

Some dealers also still dont know how to treat/ handle customers with modded cars. I was once confronted by a sales guy at AA last year (he is not there anymore) about the rear wing on my car. So i told him in no uncertain terms to F off in exactly those words. A dealership may not like my modded car but it is still mine and i am the customer supporting his dealership but that i can also withold my buying power from the dealership if i am not treated with respect. The issue is simple for me you treat me as a customer with outmost respect; provide the best quality service you can; and you have a customer for good that will refer others to you as well.

If a dealer has specific concerns about a customers car whether it is an MP issue or just a problem they cannot trace or solve ... Give the customer the benefit of the doubt and take the time to explain the situation in a frank but honest manner.

My thoughts for now.
 

zaleonardz

Well-known member
Simple question,

Whats the general profit margin on spares, and if thats too difficualt, Whats your markup on oil...

heheh... just stirring...

I do admit that we sometimes do over-react with the dealers, I had a mate of mine that works for BMW over for dinner the other night, and he was telling me some stories, and I firmly believe that the customers are idiots too..

Here is a fair one, what is the average time spent doing a standard service on a car, and is every car diagnosed each time it comes in for a service using the proper machines. Reason why I ask is that I believe a dealer service center, the guys that have had the training on your specific car is just a rush through shop, and very little, if any inspection is done on a vehicle when it comes in for a service.... views on this ?
 

Sankekur

///Member
This will probably be on of the no-go area, guess that is why I am going there:
What percentage of the initial price of a new car is for the motorplan?
What percentage of the price of parts is used to fund motorplan replacement of parts?


Edit: My meaning is not to stir up anything, I just really want to know, if of course there is info available about this.
 
M

Mike1

Guest
Good Morning Everyone

This is a fantastic start and exactly what I was hoping to hear.

So far I am picking up that there is a lot of distrust between the customer and the parts department in terms of parts prices. I will find out more today and try and answer your queries.

With regards to the service bay I have arranged a meeting with a few of our advisers to get some more insight. '

I will respond with something positive later in day.

Keep it up guys.

Mike
 

KING_RSA

New member
Nice thread Mike :thumbsup:

My questions have been asked above, viz

1) Engine mapping siftware
2) Run Flat Tyres
 
M

Mike1

Guest
Morning Gents and Gals

Best answer a few questions whilst I still have time.

My question: Can you shed some light on the "runflat" issue. Get lots of different views, where some dealers say it's ok to ditch them while others state it will void your MP. Care to shed some light on the subject or provide some insight.

Originally it was accepted and spread by dealers that Runflats could not be plugged or replaced by non run flat tyres.

Recently though many dealers have been given grief and it is currently accepted that you can plug run flats and you may also change your runflats to non run flat as long as they are BMW Approved tyres. I believe there is a star on the tyre which indicates it being a BMW tyre.

As long as you have this then all is well. I still do not understand why you need to have BMW tyres for a Motorplan though...

Whats the general profit margin on spares, and if thats too difficualt, Whats your markup on oil...

This may sound like a dumbed down answer and not too descriptive but I believe that their is not a huge amount of profit in spares. The issue with spares is that they are all produced in Germany and not locally and we get nailed with duties etc. The markup on oil is hardly anything. This is true as coming from the industry I know the dealers dont charge much for oil.

As to the exact markups I cannot say. As nobody will tell me. :banghead:

Here is a fair one, what is the average time spent doing a standard service on a car, and is every car diagnosed each time it comes in for a service using the proper machines. Reason why I ask is that I believe a dealer service center, the guys that have had the training on your specific car is just a rush through shop, and very little, if any inspection is done on a vehicle when it comes in for a service.... views on this ?

The average time per vehicle depending on model is about 2 hours. Every car is diagnosed (How else do we charge you for things you didnt know were broken?) However it must be said that although our technicians use the same machines and software as say Zeemax our technicians do not have access to half the tech that they have. I assume this is to keep the quality of work higher or just to restrict future problems that the techs may cause.

The vehicle goes through a level 2 inspection at most services. With MINI it is all services and not sure with BMW. This is a 80 point check including compression tests, brake tests as well as wheel alignment.

I do feel that sometimes these checks and requirements can hinder the technicians in solving the immediate problems the customer has with the vehicle.

What percentage of the initial price of a new car is for the motorplan?

I know with MINI that the Motorplan is not part of the initial price. However on BMW's side I am not sure. Just remember that your cars work on Conditional Servicing whereby the car constantly evaluates your driving and adjusts the service requirements to that. With BMW and MINI it is not about how many cars we sell but more about how many warranty's ie Motorplans we activate. If anything your local dealer gets a kickback when he sells a new car because he activated a Motorplan.

What percentage of the price of parts is used to fund motorplan replacement of parts?

This I do not know. I have made an attempt to find out but I would assume that parts play a huge role in funding the Motorplan. Also remember that BMW is not just a service department. We have insurance, home finance etc etc and by buying a car you are made aware and in many cases you use these services which pay for others.

We make a profit on the car, the finance, the insurance, the deposit (kickback from our banks) and even if you register with another bank we still get a kickback. We make money from parts, asset finances, our premises and so much more.

Does installing aftermarket ECU remapping software void the MP?

Only if it is detected at a service. Many aftermarket mappers sell maps that can be switched off for services. Part of the 80 point check is to look at how many times the ECU has been flashed. Often our systems because head office has dumbed them down so much dont find anything even on cars that have been flashed. Most people would use a plug and play map. In fact one of our sales people used to have one for his demo car.

How am I doing?

Too vague or would you like more info? Who else has a question?

Mike
 

Sankekur

///Member
Thanks for answers mike, I appreciate it :thumbsup:

And those that still have cars under motorplan, I spent almost R1k on some bits of plastic at BMW so you better appreciate it next time BMW tells you one of you wheelnuts is not properly balanced and it needd to be replaced (under MP) at a cost of R1000 000 000. Hopefully you will think of my generosity in footing part of that bill :)
 

netercol

New member
This may sound like a dumbed down answer and not too descriptive but I believe that their is not a huge amount of profit in spares. The issue with spares is that they are all produced in Germany and not locally and we get nailed with duties etc.

dont mean to stir here, but this i simply cannot beleive. not when a BMW dealer wants to charge me R5700-00 for a 330d maf (made by bosch) . then bosch SA quotes me R3300-00 for the same exact maf. then i import it from a bosch agent in germany, in my hands after duties, vat, shipping. R1500-00

sorry, their markups is simply huge.
 

kabal

Active member
netercol said:
This may sound like a dumbed down answer and not too descriptive but I believe that their is not a huge amount of profit in spares. The issue with spares is that they are all produced in Germany and not locally and we get nailed with duties etc.

dont mean to stir here, but this i simply cannot beleive. not when a BMW dealer wants to charge me R5700-00 for a 330d maf (made by bosch) . then bosch SA quotes me R3300-00 for the same exact maf. then i import it from a bosch agent in germany, in my hands after duties, vat, shipping. R1500-00

sorry, their markups is simply huge.

yup, same with wheels. R9000 in ZA vs R3000 from Germany, each
 

herr bmw

///Member
nic thread mike,
the way i see it and i could be wrong is that dealers pay for their premises ,electricity,etc,etc from selling spares,some times even from servicing,no mp ,
i have only had my bm since febuary and yes it is on mp,but the stuff that i have bought from the spares,exhaust finishers and oil aswell as cleaning products,oh yes an air filter,has been cheaper than the vw i used to own.
also ive compared my service recipts with my friends 325i e90 out of mp recipts and i have paid half or more for it.
eg. air filter bm 323i e90 just over R300 golf tdi 1.9 mk5 just over R900.

some other prices from vw R42000 to change the clutch,R37000 for parts(no labour)for the turbo.R3000 for a bush on the control arm,there is two and 14 different ones on the front alone.brake discs front were R4500.cam belt change R8000 and that was after discount.a normal service +- R4000.i could go on and on but i think you guys get the point.

so it isnt just bm,but all of them
 

Twinz

Forum - Support
Staff member
Thx for the replies Mike; which i find straight to the point especially about the technical capacity at dealerships. Well done again with the thread:thumbsup:
 
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