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      04-14-2011, 03:49 AM   #25
Anneka @ Sytner
 
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Quote:
Originally Posted by toxicnerve View Post
1. BMW UK/AG do not cover the cost of loan cars even for warranty work.
Incorrect, BMW cover the cost of a loan car if parts are on back order and the car is not driveable, or if the car is relayed in by BMW assist and a replacement car is provided. They don't offer to pay the cost of a replacement car as part of their warranty policy, and as far as I am aware there aren't many vehicle manufacturers that do promise to pay for a loan car upon every warranty visit in their policies?

Quote:
Originally Posted by toxicnerve View Post
2. The loan cars depreciate with mileage (obviously)
Service fleet cars are an additional expense to a business, provided by the dealer (not the manufacturer) for loan to the customer. It is the decision of a dealership if they wish to provide such a fleet for customer use.

Quote:
Originally Posted by toxicnerve View Post
3. When being sold they have to be prepped to AUC standards
The ongoing cost of prepping these cars after every use (not just the final one) tally up. I suppose this is why dealers decided to start charging a small fee to contribute towards the costs of running a loan car fleet in the first place.

Quote:
Originally Posted by toxicnerve View Post
4. When a loan car is sold another car has to be bought to replace it
Don't see what that has to do with anything ? Surely the costs of running the next car wouldn't have anything to do with the customer hiring the one presently on offer?

Quote:
Originally Posted by toxicnerve View Post
5. Drivers of loan cars have to be insured
The charge is not necessarily for insurance alone, but could be considered to contribute towards it in a small amount depending on how the accountant allocates the funds at that dealership. The loan car chage is a general contribution towards the cost of offering and running the loan car fleet.

Quote:
Originally Posted by toxicnerve View Post
6. Margins are so tight that if loan cars were not charged they would not make any money service/warranty work.
All dealerships charge BMW UK an internal rate for warranty work, which only covers the cost of doing business; this includes paying for the technician, tools, warranty administrators, supporting admin, service personnel etc.
As an insider I can see where the decision to charge for loan cars has come from, and can see where offering them free of charge to all customers could be more hassle than it's worth.


To clarify, is the question whether BMW do offer a replacement car free of charge under their warranty policy, or whether they should?

If the later, then it would be nice!
Anneka @ Sytner is offline   United Kingdom
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