Goodwill Warranty Criteria

[bam]

GM gives us some latitude with goodwill warranty decisions but I'd like to hear what others look at with regard to this issue.

We struggle with the notion of rewarding customers with goodwill warranty when we review their history and all they see us for is warranty issues.

At the same time, we want to create a favorable impression of our service department and we certainly don't want them bad-mouthing us in our small town.

What are your thoughts regarding this issue?

[robc]

For all the guidelines provided about making a good business decision, for me it comes down to one thing - how belligerent is this customer. Someone who starts out screaming is getting less from me. If they are understanding and are just asking if there is help, then sure, I'll help.

Good customer/bad customer - to me I don't care - it isn't my money. Who wouldn't want something for free. I like free things. In GM it isn't like we are expected to participate, have limited money, or it is even measured against us.

Generally, based on how far they are past bumper-to-bumper my thoughts are within 3mo/3,000 - always free, after that I use a sliding scale ... the more expensive the repair the more likely I am to help.

What I try to avoid is denying a customer, just to have them call CAC and them calling me asking why don't I give it to them. If I know I am probably giving goodwill anyways I want to be the customer's hero - not GM.

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

[JOHNV44]

The first question you have to ask is are they a customer of your service department (i.e. they do all of their maintenance, details, body work, parts purchases)? Did they buy the vehicle from your dealership? If they can satisfy either of those questions, then they should be entitled to some goodwill assistance depending on the repair. If it is a wear item (brakes are my biggest problem), than they should be assisting in the repairs, be it a $50 or $100 deductible. If it is a mechanical breakdown, than the criteria should be how much and is it maintenance related. If this is something that could have been prevented through maintenance, than the customer should be repsonsible for 50% of the repair. If it is something they had no control over, than a deductible or the entire repair covered should be considered. Unfortunately, you have to determine this on a case by case basis.

[LIFESENTENCE]

RobC makes a great point about the attitude of the customer. If he/she already has a bad attitude he/she will probably bad mouth you, even if you do give them goodwill.

[robc]

I totally understand that you need to be loyal to your better service customers. But again as John said it has to be case by case. I've bought 2 vehicles from same dealership, but I've never been in their service department. Never. Not for warranty not for anything. Knock on wood, I haven't had a problem with either vehicle and I do all the service work myself. So would I deserve any goodwill consideration?

Again, I go over and beyond for the guy who had all his service done by us - without question - but I was just saying I try not to dismiss someone just because we didn't do his 30K.

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