Auto Dealer Monthly Magazine is the daily operations publication serving the retail automotive industry. This automotive publication serves dealer principals, officers and general managers with the latest best practices.
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industry expert / compliance
clearly if any used, rebuilt or reconditioned parts are to be used in the repair. If some of the work will be done at a dif- ferent shop (sublet), it should also be noted on the written estimate or work order.
• Always get the customer's authorization for additional parts and service before doing repairs that exceed the original estimate. Some states require that all additional work must be authorized even if the cost is $1 more than the estimate, while other states allow a variance of 10 or 20 percent before authorization is re- quired. Be sure to stay within your state's guidelines. If it is determined that it will take additional work and will cost more to repair the vehicle than the original estimate, the cus- tomer should be contacted, the additional work and cost described, and permission to proceed obtained.
• The shop should not substitute parts or change the repair method without the customer's prior consent.
• If a teardown is necessary in order to give the customer an
accurate estimate, the dealer should first give the customer a written estimate which includes the total cost of the teardown along with the cost of reassembling the vehicle and replacing gaskets, seals, and other parts destroyed in the teardown. A notice should also be given that the vehicle or component may not be able to be re-assembled or restored to its former condition. After the teardown, the shop should prepare a revised estimate and contact the customer for permission to do the repairs. If the customer decides not to proceed with the work, the ve- hicle should be reassembled within the cost quoted unless reassembly proves impossible.
• When the customer author- izes the written estimate or work, he or she should be allowed to request that the shop return any parts that were replaced. If the dealer must return the replaced parts to the supplier under a warranty or core charge, the dealer should make an offer to the customer to show the replaced parts.
• Keep a written record of all
work performed as well as parts supplied, and always prepare a final invoice which describes all repair work (in- cluding all warranty work), all parts supplied and all labor performed. Always give copies of all estimates, work orders and final invoices to the customer. Protect yourself. If a dispute arises, you may be required to show proof that re- pairs were properly authorized or that you complied with all applicable laws.
• If a guarantee is offered with the repair, it should include all pertinent information, such as what the customer must do to have the guarantee honored; the term, time or mileage the guarantee is good for; what is excluded, if anything; whether the guarantee is prorated; and whether the customer can transfer the guarantee to a new owner if the vehicle is sold.
• Avoid making any state- ments, written or oral, that may be misinterpreted as being untrue or misleading. For example, shops are sometimes accused of using scare tactics or false promises
to coerce a customer to au- thorize unnecessary repairs. Be sure to have justification for any repair recommenda- tions to avoid potential legal headaches.
• Avoid advertising a service at a price which may be considered misleading. For example, it's misleading to advertise a service when the dealer knows the work cannot usually be performed in a "good and workmanlike" manner for the advertised price due to additional parts, services or labor, unless the advertisement clearly and conspicuously discloses that additional labor services or parts are often needed.
Most importantly, be sure to establish clear procedures for effectively dealing with complaints before the situation spins out of control. Customers will often give the dealership the opportunity to correct a perceived problem before they contact authorities or post a negative review. Why not take advantage?
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