Yes Virginia we are in a recession. Just shortly after Thanksgiving the top 3 news agencies reported that we are officially in a economic downturn. I'm sure this report isn't news to anyone, especially those in the body shop business. We have seen a steady decline in our business for the past 18 months, which very closely parallels the national economic trend. No, we are not looking for a bailout; in fact, I think that this adjustment is necessary. Businesses, both old and new are forced to redefine their purpose, set new standards and step up to the new economic realities. Those unable or unwilling to do this will very likely find themselves out of business.
The industry wide change is causing fear, both in the minds of body shop owners and potential clients. Shop owners are being placed in a precarious position. The Bureau of Automotive Repair, the agency who regulates the collision repair industry, states that estimates may only be written for damages that can be seen, ie, visual damages. This means, if a car was rear ended and the bumper was badly damaged, we would only be able to put a replacement bumper on the estimate, and not a bumper reinforcement, nor bumper brackets that may actually be needed to complete the repair and bring the vehicle back to pre-accident condition both esthetically and from a safety stand point.
The economy has forced customers to prioritize their spending and because of it, many are un-able or
un-willing to pay their deductible ranging from $100-$1000 dollars. Many customers are therefore making the decision to settle their claims with their insurance companies. The whole situation is a mess and it's both the consumer and the shop owners in the end, who loose. Insurance companies who cash out on claims, actually save money. Usually, the insurance company write an estimate and payout for the "visual damage" to the vehicle and once a payment has been accepted and the check has been cashed, it is considered full and final payment.
Unfortunately, customers who repair their vehicle at a later date, often become angry when the final repair estimate ends up costing much more than their deductible amount. In March a young woman brought her 2008 Toyota 4 runner in for an estimate for damage to the left quarter panel and rear bumper. The estimate we wrote was for $3304.12 of which she would have been responsible for her deductible of $250. The woman settled with her insurance company for $3054.12 and promptly cashed her check.
In October, just seven months later she decided to repair the vehicle; the new estimate, after we had an opportunity to remove the damaged parts and write a complete sheet was $3917.89, this included parts price increases, additional repairs to the inner structure, a bumper reinforcement and left bracket. The customer paid $863.77 more than her deductible. Our customer felt cheated both by her insurance company and by the body shop. The customer was explained the repair process and understood the fees involved before the repairs were started, even so, she felt that the body shop should absorb some or all of these additional fees.
I see this all of the time and usually agree to reduce our shop rate substantially to help out, but I think that consumers need to be aware of the situation. My advice to those who are considering settling a claim with an insurance company is to hold on to the check. If you have minor damage that you can live with that's one thing, but if you have considerable damage, it might be worth 1-3 hours of labor to have a body shop look for hidden damage and write a complete estimate. This process is called a tear down and usually cost between $66-200. If you decide at that point to repair the vehicle, most businesses will include this as part of the repair. If not, the knowledge gained can help in you negotiations with the insurance company.
Tuesday, December 2, 2008
Friday, May 16, 2008
ON THE SCALE 1-10
LAST MONDAY MORNING I WAS ASKED TO ACCOMPANY A VERY EXCITED CUSTOMER OF MINE TO GREENSBORO, NORTH CAROLINA TO VIEW A VINTAGE VEHICLE, A 1934 HUDSON. MY CLIENT HAD SEEN THE CAR ON EBAY AND HAD SPOKEN WITH THE OWNER SEVERAL TIMES. BASED ON THESE CONVERSATIONS AND THE ONLINE PICTURE ALBUM HE FELT THAT HE HAD FOUND THE CAR HE HAD BEEN LOOKING FOR.
THE OWNER OF THE VEHICLE HAD TOLD MY CLIENT THAT ON A SCALE FROM 1-10 THE CAR WAS A 9 AND WELL WORTH THE MINIMUM BID PRICE OF $30,000. WHEN WE ARRIVED HOWEVER, WE FOUND A VEHICLE THAT WAS IN POOR REPAIR. NOT ONE PROFESSIONAL PERSON, LESS THE UPHOLSTERER HAD EVER TOUCHED THE VEHICLE. IN FACT, I SUSPECT THAT THE CAR HAD BEEN RESTORED IN SOMEBODIES BACK YARD. THE OWNER HAD PURPOSELY MISLEAD US BY HIS OWN COMMENTS, AND USE THE INTERNET PICTURES.
THE OWNER HAD STATED THAT THE CAR WAS IN PRISTINE CONDITION AND THAT EVERYTHING WORKED AND RAN WELL. THE PICTURES HAD BEEN TAKEN FROM A DISTANCE TO WHERE YOU COULD NOT IDENTIFY THE FLAWS IN THE BODY WORK NOR IN THE PAINT, AND THERE WERE MANY. AT FIRST, I THOUGHT THAT PERHAPS THE OWNER DIDN'T KNOW MUCH ABOUT RESTORATION AND THEREFORE WAS JUST IGNORANT OF THE ACTUAL CONDITION OF THE VEHICLE, BUT AFTER SPENDING AN HOUR OR SO WITH HIM IT WAS CLEAR THAT THE OWNER KNEW THE VEHICLE INSIDE AND OUT.
AFTER AN HOUR OR SO MY CUSTOMER WAS PRESSED BY THE OWNER TO MAKE AN OFFER, WHICH HE DID. THE $10,000 OFFER WAS MORE THAN I FELT THAT THE VEHICLE WAS WORTH, BUT MY CLIENT WAS INTERESTED AND FIGURED THAT FOR ABOUT $25-30 THOUSAND HE COULD RESTORE THE CAR TO AN ACCEPTABLE CONDITION. WHEN THE OFFER WAS MADE THE OWNER BECAME QUITE ANGRY AND ADMONISHED US FOR WASTING HIS TIME. HE LITERALLY SLAMMED THE GARAGE DOOR AND SAID "WE'RE DONE, YOU ARE WASTING MY TIME."
ON A SCALE FROM 1-10 I WOULD HAVE GIVEN THE CAR A 4, THAT'S A FAR CRY FROM A 9. ON THE WAY HOME WE THOUGHT OF ALL OF THE THINGS WE COULD OF AND PROBALBLY SHOULD OF SAID TO THE OWNER, BUT IN THE END WE DECIDED THAT THE $1500 AND TWO DAYS SPENT WAS MUCH BETTER THAN BUYING A PIG IN A POKE. WE LEARNED A GOOD LESSON, ALWAYS DO YOUR RESEARCH BEFORE BUYING ANYTHING ONLINE.
IF YOU FIND YOUR DREAM CAR AND NEED A CONSULTATION PLEASE GIVE ME A CALL. A FEW DOLLARS SPENT IN RESEARCH CAN SAVE YOU THOUSANDS.
THE OWNER OF THE VEHICLE HAD TOLD MY CLIENT THAT ON A SCALE FROM 1-10 THE CAR WAS A 9 AND WELL WORTH THE MINIMUM BID PRICE OF $30,000. WHEN WE ARRIVED HOWEVER, WE FOUND A VEHICLE THAT WAS IN POOR REPAIR. NOT ONE PROFESSIONAL PERSON, LESS THE UPHOLSTERER HAD EVER TOUCHED THE VEHICLE. IN FACT, I SUSPECT THAT THE CAR HAD BEEN RESTORED IN SOMEBODIES BACK YARD. THE OWNER HAD PURPOSELY MISLEAD US BY HIS OWN COMMENTS, AND USE THE INTERNET PICTURES.
THE OWNER HAD STATED THAT THE CAR WAS IN PRISTINE CONDITION AND THAT EVERYTHING WORKED AND RAN WELL. THE PICTURES HAD BEEN TAKEN FROM A DISTANCE TO WHERE YOU COULD NOT IDENTIFY THE FLAWS IN THE BODY WORK NOR IN THE PAINT, AND THERE WERE MANY. AT FIRST, I THOUGHT THAT PERHAPS THE OWNER DIDN'T KNOW MUCH ABOUT RESTORATION AND THEREFORE WAS JUST IGNORANT OF THE ACTUAL CONDITION OF THE VEHICLE, BUT AFTER SPENDING AN HOUR OR SO WITH HIM IT WAS CLEAR THAT THE OWNER KNEW THE VEHICLE INSIDE AND OUT.
AFTER AN HOUR OR SO MY CUSTOMER WAS PRESSED BY THE OWNER TO MAKE AN OFFER, WHICH HE DID. THE $10,000 OFFER WAS MORE THAN I FELT THAT THE VEHICLE WAS WORTH, BUT MY CLIENT WAS INTERESTED AND FIGURED THAT FOR ABOUT $25-30 THOUSAND HE COULD RESTORE THE CAR TO AN ACCEPTABLE CONDITION. WHEN THE OFFER WAS MADE THE OWNER BECAME QUITE ANGRY AND ADMONISHED US FOR WASTING HIS TIME. HE LITERALLY SLAMMED THE GARAGE DOOR AND SAID "WE'RE DONE, YOU ARE WASTING MY TIME."
ON A SCALE FROM 1-10 I WOULD HAVE GIVEN THE CAR A 4, THAT'S A FAR CRY FROM A 9. ON THE WAY HOME WE THOUGHT OF ALL OF THE THINGS WE COULD OF AND PROBALBLY SHOULD OF SAID TO THE OWNER, BUT IN THE END WE DECIDED THAT THE $1500 AND TWO DAYS SPENT WAS MUCH BETTER THAN BUYING A PIG IN A POKE. WE LEARNED A GOOD LESSON, ALWAYS DO YOUR RESEARCH BEFORE BUYING ANYTHING ONLINE.
IF YOU FIND YOUR DREAM CAR AND NEED A CONSULTATION PLEASE GIVE ME A CALL. A FEW DOLLARS SPENT IN RESEARCH CAN SAVE YOU THOUSANDS.
Thursday, April 17, 2008
WHAT TO LOOK FOR IN A REPAIR FACILITY
Women seem to have an easier time with this than men; they are able to ask questions and use thier intuition to know wether the shop is going to do a great job or not. Remember, fixing the car is the easy part, finding a shop owner or estimator to slow down and really listen to individual concerns is more difficult. I cousel my clients to become educated, know thier rights and ultimatly, wether they choose to have me repair thier vehicle or not, I tell them go to the shop where they feel the most comfortable.
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