Why Repairs Take Time at Dealerships
Car repairs at dealerships often involve a thorough diagnostic process to accurately identify the root cause of car issues. Modern vehicles with advanced electronic systems add complexity to this process, making it time-consuming. Additionally, parts ordering and adherence to manufacturer guidelines can contribute to repair time. Each state has laws regarding how long a dealership can keep your vehicle; in California, it’s up to 30 days without written consent.
They want to keep you as a customer, and might offer services like a loaner car or a discount on your next purchase. The most common reason for a long repair time is that the dealership doesn’t have the parts in stock.
Streamlining Your Dealership Visit
To make the process go faster at a dealership, be prepared and know what to expect. Many dealerships, confident in their ability to get you approved, might give you the keys to your new car ahead of time, with the agreement that you’ll sign the loan paperwork when it’s ready. If financing through the dealer doesn’t work out, you do have other options.
Dealership Sales and Profit Considerations
Automotive retail is changing fast. Average dealership operating profits plunged from 8.9 percent in 2015 to 1.7 percent in the first half of 2018, while gross profits fell from 3.3 percent to 2.4 percent over the same period.
It isn’t ideal for dealerships to keep vehicles in stock for long as prolonged storage can directly impact their pricing. Typically, rates for these cars may reduce after a few months, so dealers aim to move vehicles out of inventory swiftly to maintain a better profit margin.
Customers are experiencing longer waiting times for brand new vehicles, with second-hand vehicles seeing a rise in prices to fill the demand. This supply and demand issue is compounded by factors such as the availability of electronic parts and unit allocation practices, creating a challenging environment for the auto industry.