Dealerships Explore Using Uber And Alternatives To Loaner Cars

Loaner programs for service customers are a sore point for many dealerships.

They're complicated to run. Automakers want the loaners to represent the brand. No Porsche owner should be put in a Kia Soul while his Panamera is being serviced, thank you very much. So for luxury brands especially, maintaining a large loaner fleet can tie up hundreds of thousands of dollars.

And some customers abuse the system. They might turn in their vehicle on Thursday for service in Boston, say, and drive the loaner the roughly 600-mile round trip for a long weekend in Bar Harbor, Maine.

But there are alternatives to loaner fleets. In some markets, for example, Uber for Business contracts with dealerships, which request rides for their customers.

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PUGPROUD - 3/5/2018 5:04:02 PM

+1 Boost

Why do I get the feeling these changes are great for the dealer and a diminishment of services for the customer.

TomM - 3/5/2018 6:12:37 PM

+1 Boost

THe current sales cycle is slowing - as in normally does. It is during slow sales that dealers are most vulnerable - because it not only reduces profits by volume - but also demands lower prices to move vehicles.

Frankly - I do not see why a dealer needs offer a Porsche as a "Loaner" during repair - the customer would not rent one normally. However - while the "customer experience" has been stressed to the nth point by the manufacturers - this is clearly a way to be CHEAP. I am happy when my local dealers take me home - and then pick me up to get back to the dealership to get the car - which is far cheaper for them - so an UBER - or TAXI - would be fine for me - but there are those who will argue that it is not what you expect when you pay $50,000 and up for cars these days.

MDarringer - 3/6/2018 8:33:04 AM

+1 Boost

Manufacturers put pressure on dealers to buy stock for loaner cars to incrementally increase sales. Their theory is that the dealer buys the product at the real invoice and then turns it into a CPO vehicle. Dealers are in the business of SELLING vehicles, so buying them does not make business sense. BUT in CPO land, the manufacturers are intent on dealers taking lease returns for CPO as well, so you wind up with excess stock on your used lot.

wilfred - 3/6/2018 12:33:53 PM

+2 Boost

Not going to work, we have been accustomed to loaners. Personally, I don’t mind what they give me as long as it’s a clean car. Also, as more dealerships are going no-haggling one price on new cars, these previous loaners are perfect for those that don’t want to pay full price.