Sandwiched Toyota

A Collision Shop's Dilemma


The following scenario comes from a collision shop that wishes to remain anonymous.
The collision shop owner said, "One of my good friends referred this customer to me. This lady's car had been 'sandwiched' after stopping at a red light. The front of the car did not appear to have too much damage. We didn't even have to replace the hood. But the rear was hit pretty hard.
"Our initial estimate was around $9,000 on this one-year-old Toyota Camry V6 XLE with 6,500 miles on it. The final cost, with supplements, was around $11,000. That was well below the replacement cost ($30,000), so the insurance company agreed to it being fixed.
"I remember this lady specifically asking me if my shop was capable of this repair. She even made it a point to tell me how picky she was going to be. I assured her we could do the job to her satisfaction.
"Four weeks later, we finally completed the job and she picked up the car. Because it was raining that day, she didn't notice any problems. But a week later, she returned with a list. The hood didn't line up at the cowling or at the front of the fenders, and the trunk lines were noticeably off. The trunk had lined up perfectly before we painted it, so I think the frame probably shifted after the car was driven.
"It now appeared the unibody frame had become bowed from the accident. To repair the car to her satisfaction would require the job to be completely redone at my expense. To make matters worse, my bodyman is now telling me he doesn't think the car will ever be straight.
"What should I do? What would you do?"


'Here's what I would do'
Scott Benavidez, co-owner, Mr. B’s Paint & Body Inc., Albuquerque, N.M.

Scott Benavidez

"We would now assign a second technician to help the first technician complete this job. This will speed up the process, as two sets of eyes are better than one.
"Because this was a big repair, the first technician's 'head' is probably worn out on this job, and the second tech would also be helpful in this area.
"I would only pay the second tech, which would help cut down the cost to the shop. I would then supervise the completion of this job and deliver this vehicle, with completed list in hand, to the customer."


'Here's what I would do'
Steve Tomaszewski, president, Alpine Collision Center, Grand Rapids, Mich.
"Repair the car! The cost to you and your business will be far greater if you don't!

Steve Tomaszewski

"Start back at the beginning, by electronically measuring the unibody structure. If you don't have the capability to perform this necessary step, sublet it to a facility that does. This is critical and should have been done and documented during the blueprinting, repair planning process as one of the first diagnostic procedures in determining the extent of the damage. Without that as the foundation to begin the restoration process in returning the vehicle to its pre-accident condition, you have no way of knowing how severe the indirect damage to the structure was. On the other hand, had you measured and documented the structural damage, you'd have documentation to show that it was repaired within factory specifications when the repair was completed and delivered from your facility.
"To address your bodyman's comment about the vehicle being 'straight,' I couldn't disagree more. By virtue of the technology used today in manufacturing and made available to the repair industry, we can achieve this standard on not only a consistent basis, but show documented proof to support it. Maybe your bodyman needs training to gain the knowledge, which will instill the confidence in his ability to achieve these results. I certainly wouldn't allow him to 'take another shot at it' at the expense of your business or friendship.
"Final thought: The customer did ask if your shop was capable. It is now up to you to win her trust back by showing her that you are."


What the shop owner did:
"We got the car back in and adjusted the hood the best we could. We then applied filler to the left quarter panel where it meets the top of the trunk lid and repainted the area. I really believe the average customer would have been happy with the results. But when the customer picked it up the second time, the first thing she did was open the trunk and point out the body filler. She then complained that the hood still didn't align like it was new.
"At this point, I offered to purchase the car from her.
"Fortunately for me, she ended up selling the car on her own - after which she sued the insurance company for diminished value (they paid her $3,000). She later told me that even with the insurance settlement, she lost money on the deal.
"Because I was a 'friend of a friend,' the issue went no further."


T.J. Reilly's thoughts:
"There are some jobs we just need to say 'no' to. We've all taken in jobs, especially when business is a little slow, that have come back to bite us.
"The sad part about this story is that I doubt if the collision shop's friend, or this customer, will recommend that shop in the future.
"Because referrals are almost always the No. 1 source of new customers, we need to be extra diligent about the quality of our work and how we treat our customers."

Blackmailed

Shop owners run into "situations" all the time - situations that leave them scratching their heads, trying to figure out how to resolve the issue fairly for everyone concerned. They want to make the right decision in solving a dilemma, but things are not always black and white. Sometimes there are gray areas. Following is a good example of such a dilemma. It comes from Lee Rector of Black Forest Werkshop, an ASA member-shop in Austin, Texas. How would you handle the situation? What would you do?


The scenario:
"We had a 1995 BMW 740 towed in with a failed water pump. The vehicle had severely overheated, so we recommended that our customer replace all the hoses and other cooling system components, based on the high past.

The female customer did not want to fix the car properly, so we politely suggested that she take it elsewhere because we didn't want the liability. At that point (this was on a Friday) we told her we could get the work done that same day if she would agree to let us fix it properly.

"Our female service adviser and my wife explained in great detail what we were going to do, why we were going to do it and how much it was going to cost. She was then given the estimate, which she approved. The finished job actually was completed for less than what we had quoted."

"On Tuesday, the customer returned with her boyfriend and complained that she was forced against her will to have the work performed."

"After filing a complaint with the Better Business Bureau and the attorney general's office - both of which ruled in our favor - the customer filed against us in small claims court. The customer asked for $650 (the extra amount of work authorized beyond replacement of the water pump)."

Dilemma: What would you do?

Mitch Schneider, owner, Schneider's Automotive, Simi Valley, Calif. - "I live and work in a state that demands that no vehicle can be serviced without a signed and written repair order. That means we cannot work on a vehicle without written authorization and the estimate for the work to be performed must be exact. Exact equals exact: no 10 percent 'wiggle room' or 'fudge factor.'

Mitch Schneider

"The lady with the BMW could not leave our shop without a signed and written repair order (legal and binding contract) itemizing all the repairs to be performed and their associated costs. If the vehicle was towed in without the owner being present to sign the estimate - we would have created a complete and accurate repair order and faxed or e-mailed it to her if we could, requesting a return fax or e-mail with the appropriate documentation (signatures). If that was not possible, we would have to call and then document the results of the call: when we called, who we talked to (must be the registered vehicle owner), the method of communication (cell, home phone, work numbers, email, fax), an itemization of what they authorized, and, the dollar amount associated with the repairs.

"The normal kinds of increases associated with additional repairs must also be documented on the repair order. Consequently, there is a paper trail to substantiate every detail of every transaction.

"It sounds like a monumental pain, but it virtually eliminates the kind of 'he said/she said' confrontations you are likely to encounter.

"If you have to go to small claims court, go with every scrap of documentation you have. And, bring anyone involved in the original transaction who can be sworn in and testify on your behalf."

How Rector handled the situation: "I ended up going to small claims court. I even took copies of the verdicts from the Better Business Bureau and attorney general's office stating that no wrongdoing had been detected, so I felt confident the judge would rule in my favor. Unfortunately, the judge ruled that I owed the lady $650 plus court costs."

How Reilly would have handled it: "I believe that in business the customer is your boss.
"I know a lot of shops might disagree with me on this issue, but refusing to repair a car because the customer doesn't want everything fixed, is like telling your boss you won't work today unless you can do it your way.

"The only time we will refuse to repair a car is when there is a potential safety issue to the customer and/or other vehicles.

"As auto shop owners, we always have the option to reduce or remove our warranty. If the customer wants a used part, cheaper part or just to have the car patched up, we can always reduce or remove the warranty.

"The most important thing is to communicate, communicate, communicate and then document. Sometimes we will even have the customer sign a disclaimer before we work on the vehicle if we feel strongly enough about the issue.

"Because it was Friday and the customer wanted her vehicle back, she probably did feel undue pressure when the shop said they wouldn't fix the car without doing 'everything.'

"The customer was obviously swayed by her boyfriend (her 'knight in shining armor') to believe she was 'cheated,' which ultimately made for the biggest problem. Had both the woman and her boyfriend been a part of the initial negotiations, I doubt there would have been issues after the repairs."

Head Gasket Woes

This situation happened to me many years ago:


This customer had been bringing his 1987 Honda Civic to us since he purchased it new. He had us do all the oil changes and factory-recommended services. The Civic now had 94,000 miles on it, and was blowing white smoke out of the tailpipe.
The customer had obviously driven it too long that way because the head was now warped and had to be sent out. Prior to the head gasket blowing (this was somewhat common on this year/model Civic), the engine had not been running hot, the customer said, so we had no reason to suspect the radiator might be plugged - considering the vehicle's history. There was no water in the oil and no oil contamination in the coolant. In addition, you could not visibly see the radiator core because the filler neck had an elbow design.
After we got the engine back together, we test drove the vehicle. The electric fans cycled properly and the car ran cool. When the customer drove it home (15 miles), he noticed the engine was running noticeably warmer than it did before.
We then sent the radiator to the radiator shop and discovered that it was partially plugged. We suspect the radiator had crystallized while it sat empty during the head resurfacing.
The customer paid for the head gasket work, but didn't think he should have to pay for the radiator repair because he wasn't having an overheating problem before the head gasket went out. We must have done something, he believed, to cause the radiator to become plugged.
What would you do?

Kandie Jennings, AAM

• Kandie Jennings, AAM, owner, Tom's Automotive Service, Seattle - "Unfortunately, in this type of situation, if you don't give him the repair you will most likely lose a longtime client. I'd explain the circumstances, that it really wasn't our fault, but because we value him as a client we are going to take care of it for him. Sometimes, when it costs us money it will save us money in the long run!"
• Bill Moss, AAM, owner, Ferris Automotive Inc., Warrenton, Va.; and director, ASA's Mechanical Division - "With a long-term customer in a situation like this, I think you have to (should) take care of them. In this case, you have a relationship with the client, and that is very valuable. I have always operated under the premise that you don't make your money on individual repair orders, you make your money on relationships.

Bill Moss, AAM

"The radiator issue was essentially unforeseeable, so take the hit and move on. I usually show the charge for the covered item on the repair order and then apply a discount, so the customer can see the value you are allowing.
"On overheat repair orders, we often use a disclaimer that basically states that despite a satisfactory, post-repair test drive, undetected issues may arise in the weeks following our repairs. We discuss this with the client, and emphasize the stress that is put on modern plastic cooling system components in an overheat situation.
"I know the Honda in this 'What would you do?' exercise apparently did not overheat prior to repairs, but having a discussion about potential issues arising after major repairs is often a good practice. It is an opportunity to explain to the customer that you used your experience and knowledge to affect their repairs as economically as possible.
"You can expose them to the fact that, sometimes, there are extenuating circumstances or failures, but that after your test drive (be sure your repair order shows arriving and departing odometer readings), there were no symptoms requiring attention."
• How T.J. Reilly, AAM, handled it - "After speaking to some other ASA shop owners, I realized I should always recommend a radiator rod-out anytime a head gasket has to be replaced. It was my poor shop policies that caused this customer to have to return for additional repairs. Because of this, I agreed to do the additional repairs at half price.
"In retrospect, I should have done it for free because our leaving the radiator empty for a week, allowing it to crystallize, was definitely a contributing factor. Also, we lost the customer. He never did business with me again.
"Today, I don't require my customers to have the radiator serviced, but I do always recommend it. If they choose not to service the radiator, then I choose not to offer any warranty on the head gasket."

Engine overhaul goes bad

This situation comes from a person who purchased an existing auto repair shop. The previous shop owner had promised anything and everything to his customers to keep the shop going during the sale process without regard to future consequences.
The new owner encountered this problem: A customer called and said the engine the shop had just rebuilt had failed. The customer had been told he had a two-year or 24,000 mile warranty on the rebuilt engine.

That sounded reasonable, but there was nothing in writing.

After researching the situation, the new shop owner found nothing had been said to the customer about a follow-up inspection, monitoring gauges and fluids, and what to do if there was a problem. The problem occurred while the customer's son was driving on the freeway. The engine developed an oil leak, the oil light came on, the engine temperature gauge went full hot, and not being an experienced driver, the son drove it until it would go no further.

The new shop owner called a tow truck, got it to the shop and found it had gotten hot enough that the crank was seized. After inspecting the engine, the shop owner decided it was pretty much a total loss.

Obviously, the new shop owner faced a dilemma. How should he handle the situation?

What would you do?

Douglass Kirchdorfer, AAM

• Douglass Kirchdorfer, AAM, owner, Downing Street Garage, Denver; member, ASA Mechanical Division Operations Committee: "As a new shop owner, his best message to the old owner's clientele would be to assume the risk and replace the engine.

"With the replacement engine would come a new set of requirements on what would be covered in the event of a second failure and what would not.

"I would also review what caused the failure. If it was determined that the cause was poor work quality, I would have a meeting with the tech that did the engine installation. The technician should be accountable for his work quality.

"If it was determined to be a part failure, I would seek reimbursement from the part supplier.

"Then I would schedule the vehicle back in two weeks for a reinspection."

Here is what the new shop owner did:

"As 'Dad' seemed like a reasonable person, I recommended we replace the engine with a low-mileage, used unit I had located. After I showed him the estimate, he offered to pay half. I felt relieved; I really thought I would end up paying for a full replacement block and rebuild.

"I was ready to step up to multiple options, though, because as the new shop owner
I didn't want to risk any bad word on the street. You can be sure, we quickly instituted a full checkout process in our operations manual for any major engine work performed. It calls for us to review with the customer how to keep the warranty valid, including exclusions that apply.

"And over time, as things turned out, 'Dad' had multiple vehicles (and multiple sons) and turned out to be one of my best customers."

Here is what T.J. Reilly, AAM, would have done:

"As the new shop owner, I would honor all warranties - written or not. Since the greater majority of new customers come from referrals, there is nothing more important than going the extra mile.

"One of the options often overlooked by many shop owners is the offer to purchase the vehicle from the customer. This gives the shop the ability to fix it when the shop is slow and then resell it.

"Many times, when you are selling a rebuilt engine, the cost is more than the vehicle is worth. Purchasing the vehicle and scrapping it can often be more cost-effective."