Posted to Shop Management Forum on 12/5/2015
10 Replies
Never, EVER, call them "Loaner Vehicles". First the
obvious, then the not-so-obvious. The term "loaner" implies
no responsibility, no cost. What do you think when you send
in an air tool for repairs and the tool guy gives you a
"loaner" until yours if fixed? Do you expect to pay him
something for the loaner, or if it breaks, or gets stolen?
In a court of law, there is a WORLD OF DIFFERENCE between a
loaner car and a rental car. Naming it a rental car reduces
your liability.
Although I'm sure there's going to be those who disagree
with me, but... it has been my experience that there's no
such thing as rental car insurance. I have not been able to
find an insurance company in Texas or Utah who will let me
rent a car to any customer without knowing their driving
record, insurance policy, and fully insure them. Every
insurance person I've spoken to tells me it's a myth.
They also tell me that's why all of the car rental companies
are self-insured.
Early in my career, I did loaner cars. After I got smart (or
so I thought) I switched to rental cars. I had nothing but a
bad experience with both. I rate providing substitute
transportation (by any name you want to call it) right up
there with financing work. It's a loss center as far as I'm
concerned.
Yes, I've read articles in trade magazines where some
successful shop somewhere in B.F.E. is having great success
with loaner vehicles, it's a profit center, and it brings in
tons of business. That's about as close as I've ever been to
it... just read about it. Never met anybody, though.
One thing I did notice. When I quit providing substitute
transportation, my clientèle seemed to improve.
Larry Bloodworth Technical Information Specialist/Technician Tanner Transmissions Draper, Utah, USA
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