Used Car Reconditioning

[DK]

According to the Chevrolet Policy and Procedures Manual, you can not charge reconditioning, refurbishing and replacement of wear and tear items to warranty when preparing a used car for used car sale. Are light bulbs considered wear and tear? What about serpentine belts?

[fburrows]

DK:As long as the part is clearly defective you are not going to have a problem. You would never get an argument on the light bulbs. If you put a belt on every used car you service you are asking for trouble. I would want to be sure that the belt was severely cracked before I would replace it. Before the restrictions on front end alignments, a friend was complaining that the factory charged back some front end alignments on new cars. I was surprised until I found out that they were claiming an alignment on every car they serviced. As long as you apply the warranty fairly, use common sense and document the repairs properly then you will not have a problem.



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Frank Burrows
Automotive Business Solutions
frank@autobusiness.org

[robc]

I'll warn you that I am much more conservative than probably most. I agree that the light bulbs aren't a problem but I'd think twice before I'd do a serp. belt. It's just too close a call for comfort.

But what really guides my decision isn't that I don't think I could argue with GM and win. It's why am I fighting the used vehicle department's battle? If GM calls it reconditioning and charges it back, who pays? The service department! Why am I absorbing the risk for the used vehicle department. Besides if you leave this cost out of the car, they'll probably just give it away on the deal. Sure it might not be this particular belt that is going to be questioned, but over time similar judgments can really add up. To me (and for the service department) these costs are better given to used vehicles than on my shoulders.



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** Rob, Editor WD&S **
Help is only a message post away!
robc@dealersedge.com

[Doug]

I have no hesistation about warranty work on used cars but do use some common sense:

Warranty brake pad/shoe replaecment or glass replacement? Never !

Cosmetic and trim items ? Never !

Repair bona-fide mechanical problems? Yes !
With a handwritten notation on the RO stating that the condition was verified my myself after being discovered thru routine check-in or road test.

As it turns out, though, we still do very few used-car warranty repairs. If the defect is minor it's safer, from an audit standpoint, to let the car be sold and then let the new owner bring the car in for warranty repair.

I am hoping that auditors wouldn't make an issue unless an obvious pattern of abuse was noticed.

Cheers,
Doug

[Bert]

Rob,
It is just that kind of "attitude" that shows a lack of managerial consistency in most dealerships. "If I do not benefit the heck with the other department?"
Grow the organization....then the employees will grown with it!!

[robc]

... and I think we'll do ourself a favor by following Reynolds lead in customer service and product development.

The point is for the service department should not to feel the need to roll over and subject the dealership to unnecessary liabilities at the demands of the UCD. If the claim is questionable it is safer to capture it up front in the cost of the vehicle than to have another land mine for service to step on. When the claim is charged back the dealer eats it, they can't go back after the fact and try to put the costs in the vehicle (unless it happens to still be on the lot). I think the dealer would rather have his money today with no contingent liability than to build up waranty claims that can be questioned on demand.



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** Rob, Editor WD&S **
Help is only a message post away!
robc@dealersedge.com

[Rob Kealey]

Over the years, I have found this definition helpful in determining if a repair is legit.

If it is strictly to improve the saleability of the vehicle, and is primarly for the benefit of the Dealership, it is reconditioning.

If it is to address a problem with the safety or reliability of the vehicle, it is probably okay.

Good Luck.
Rob K