Bulk oil equipment

[drapp]

For years we have used GM Goodwrench oil. Since the beginning of time the oil supplier to this dealership has always "loaned" equipment and maintained it. Now it seems the supplier doesn't want to do this anymore. Of course they are the only supplier of this oil within our state. GM has programs to purchase equipment but of course our oil cost increases $.20 - $.40 per gallon or more.

To be fair the oil supplier does have a program that offers $.05 per gallon toward repair. Being a small dealer where the newest equipment is 11 1/2 years old that doesn't cover the potential expense.

What do you have?

Do you own your equipment? or loan?

Who pays to repair it?

[Old Irish]

We own nearly all of our equipment. We have one "loaner" tank, no contract.

I would strongly suggest avoiding all loans, contracts, repair agreements, special allowances, and any other agreements with oil companies that may very easily become encumberances down the road. Negotiate the very best possible "net, net" price on oil with no frills, and no strings attached. Buy or lease whatever equipment you need on your own.

Our dealer has his own leasing company, so such equipment would be bought into the leasing company and the lease payment charged to the service department, usually on a 5 year term, and with zero due at the end.

Cheers
Doug

[Louis]

We were using GM oil up until a few years ago when we were approached by a independent oil supplier. At that time we had our equipment on loan from the supplier that supplied us with the GM oil. After looking at the cost savings by going with the other vendor we calculated that we could buy all new equipment and recoup the cost within about 3 years. We did just that and now we own our own equipment and we can change vendors anytime we want to and don't have to worry about who owns the equipment.