Wednesday, September 17, 2008

You Do The Math

“I have to go now. I have other calls to make.”

Famous last words from the General Motors dealer I have a leased car with. They were calling because they had recently fixed an air conditioning problem and wanted to make sure that it was working properly.

The car had come off of warranty a few months ago and it would have to be fixed on my dime. Given the car was only 3 years old, just off of warranty, the very low miles for the age of the car and that they had fixed an air conditioning problem about a year earlier, I told them to either fix it at their expense or I would take it to another dealership for the work. They agreed and said that GM would fix it under “good will”.

Well at least she called. A little too late though. In three years that I have had the car, no one in the dealership has bothered to call after a service call. What a shame when you consider what a dealership spends in advertising to get a new customer.

How about what an existing customer is worth? At my rate and trading in my car every four years, I could conceivably lease another 4 cars over the next 16 years before I retire. At an average of $400 a month for 16 years that works out to $76,800 in lost revenue.

Do you still have to go now and make more phone calls?

If I were you, my next call is to the guy whose name is on the dealership.

BB for now