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Pointers To Help You To Decide The Best Service Center for Your Car

The conventional knowledge is that – a) Dealership workshops are the best b) Road side workshops with low overheads are the cheapest c) Online aggregators are quite affordable for car services d) Good Multi-brand service centres are not tried and tested. Let’s explore together the accuracy of this perception and check if these hold any firm ground.

A. Dealership Workshops:

These service centres are commonly known as “Dealership Workshop” as they are approved by manufacturer for servicing that particular brand of vehicles. 

Advantages:

  • They have well established processes to follow while handling vehicles.
  • The technicians are trained. 
  • Technical help from the manufacturer is available as and when required. 
  • Warranty works are entertained. 

Disadvantages

  • Undue advantages are taken in the name of authorized Service Center.
  • Mandatory replacement of spare parts in service, though all parts may not be required.
  • Mandatory Wheel Alignment and Balancing in every service. It begs the question as to how one can precisely tell that vehicle needs alignment and balancing without checking tyre visually or without going on a road test or by physically putting the vehicle on alignment machine or tyre balancer?
  • Consumable amount is added in invoice, though periodic maintenance labour charge includes consumable charges as per manufacturer. 
  • Over and above adding consumable amount in invoice, additional amount is charged in invoice for Parts & Lubes like – rust spray, grease, brake cleaning spray etc. whereas these charges are included in PMS labour charges as per OEM directives.
  • Unwanted Value-Added Services promotion, though not recommended by manufacturer.
  • Unwanted seasonal repair promotions (examples: A/C Overhauling in Summer, Heaters & Battery promotion in Winter, Wiper blades, Tyres, Defogger repairs etc in Rainy season).
  • Washing charges are levied, though it’s included in the periodic maintenance charges as per manufacturer.

B. Unorganized Local Garages:

The reality of most, but not all, of these road side garages, also known as unstructured multi-brand centers, is that it is run by individuals who enter into automobile field at a very early age as helpers and get some kind of practical training on mechanical or electrical work. They come together and collect some funds from near and dear ones and open barely equipped, bare-minimum makeshift car garages. Such places do not have any kind of certifications or license from any government body to operate a workshop and since the overheads are very less, they offer services at a very cheap rate but at the cost of quality and safety. 

Advantages: 

  • Overheads are less, hence service rates are very less.
  • Mechanical and Electrical labour charges can be negotiated.

Disadvantages:

  • They lack the skill matrix and expertise to handle different jobs. If a vehicle is stuck up for diagnosing then N number of people are called in to check and diagnose. Trial and Error method is used to fix issues.
  • Service by untrained technician may lead to breakdowns.
  • Special tools being expensive, local methods are used to remove and re-install components in turn damaging the nuts and bolts.
  • Lack of Ownership on repeat jobs.
  • Financially not stable, hence if a major repeat job occurs then accountability is the issue.
  • Almost all such centers do not have insurance for vehicles inside their premises.
  • Quality, Safety and reliability of spare parts is debatable all the time.

C. Online Car Service Aggregators:

These are app-based organisations with no brick and mortar of their own. They work on margin sharing module. These organizations are very strong on various platforms, promoting different services. The only way they attract customers is by advertising different services at throw-away prices. These aggregators have tie-ups with local garages & multi-brand service centres for services & repairs.

Advantages:

  • Strong follow up with customers on work in progress status and with workshop on timely delivery.
  • Accountability on repeat job.

Disadvantages:

  • The vehicle will be sent to a workshop in your vicinity, irrespective of the kind of workshop – it can be a local workshop or a well-structured multi-brand service center.
  • Costing – To lower the cost, different packages of periodic maintenance services are designed and rates are offered accordingly, whereas the fact is that a full periodic maintenance service has to be carried out once in a year or 10,000 kms whichever comes first.  Customers choosing lower periodic maintenance packages may be lower the performance of their vehicle in the long run.

D. Multi-brand Service Centres:

These fall in-between the high-cost dealerships and unorganized local garages. They have better infrastructure than local garages with proper SOPs, providing services to customer at a price lower than dealerships.

Advantages:

  • They are as good as dealership service centers.
  • Trained Technicians are hired from dealership; hence quality of work is good.
  • Affordable Rate– Much lesser than a dealership and marginally more than a road side workshops.
  • Only required parts are replaced. The concept of mandatory replacement of spare part in service is not encouraged.
  • Cashless Insurance Repair facility is available, similar to a dealership service center.
  • Personal attention is given to each vehicle. Since they don’t sell new vehicles, there is no addition of new vehicles to their pool, hence their quality of work has to be good and customer satisfaction should be high to retain customers.
  • Any Repeat jobs are taken care immediately with high accountability.
  • Generally, workmanship warranty is for more months compared to other centers.

Disadvantages:

  • Delays in procurement of Spare parts as dealers don’t want to sell the parts to bigger multi-brand service center to kill the competition and maintain their monopoly.
  • At times, delay in delivery of vehicle as they have limited staff and if personnel are on leave without prior intimation, they don’t have replacement from other branches like dealers have.
  • They cannot entertain warranty work. 

After analysing all the pros and cons, different surveys conducted and the dealership reports we can draw the following conclusion:

  • Vehicle users are forced to stick to dealership service center for keeping their warranty alive and in turn paying exorbitant charges in the name of servicing.
  • Once the warranty period is over, they prefer going to other service center as different surveys have shown that 60% of customer do not visit dealership workshop after warranty.
  • The concept of well structed Multi-brand Service Center competing with Dealership service center is at the tipping point of taking off.
  • It is little risky to get the work done at local garages due to lack of training, the impact is on quality.
  • We leave it to your better judgment to weigh the advantages and disadvantages of approaching a certain car service provider, which suits best your needs.
8 Impressive Benefits of Buying a Preowned Car

8 Impressive Benefits of Buying a Pre-owned Car

Demand for pre-owned vehicles is constantly growing and the ratio of used cars compared to new cars is expected to double by FY251[source].

Owning a car in an Indian household is getting increasingly common especially with the rise in younger population and increase in middle-class & upper middle-class population. Studies show that in FY 2021, the pre-owned sector in India stood at 3.8 million units, making it 1.5 times bigger than the 2.6 million units new car market in the same year! 

During the pandemic, with the increased number of people preferring individual mobility and more finance options infused into the used car market, the market is set to grow considerably. With the sales and production of new vehicles hindered due to the pandemic, the immediate option for the buyers is the used car market.

There are several advantages of buying a pre-owned car besides it being a financially prudent decision and we will list them down here for you so that you can make an informed decision.

  1. Affordability

One of the main advantages of buying pre-owned cars is the price. Depending on the kind of car you are looking to buy and your budget you can pick a car of your choice. This idea is especially helpful if you are looking to buy a luxury car. As per automobile dealers, the demand for used luxury cars has been growing at approximately 35% – 40% on a year-on-year basis, as owners of luxury cars usually sell off their vehicles after a year or two years. For instance, the price of a Mercedes-Benz SLK first hand starts at 80 lakhs, whereas you can get a second-hand model starting at 55 lakhs.

  1. Good option for a second car for the house

These days, with greater mobility and different areas that the family members need to travel, using the same car is usually not the best option. In such cases, we find it increasingly common for most houses to own more than one car. Buying a pre-owned car is good option in such cases where you do not have to spend much for an additional car. 

As per studies, over 75% of used cars purchased are sedans and hatchbacks due to their practicality and low-maintenance costs.2[source]

  1. Rate of Depreciation 

Depreciation is the decrease in the value of a car over time, which means that if you were to sell your car you will get a price lower than that you spent on acquiring it. In case of pre-owned cars, the depreciation rate is low, because the bulk of it has already happened. The depreciation rate is highest in the first two years of buying a car.

  1. Taxes

Besides paying for the vehicle, a person must also pay additional taxes like GST and road tax. These taxes are not applicable when buying a pre-used car.3[source]

  1. Loan & Cost of Insurance

The calculation is simple here, if the price of car is lower, you will take a small loan leading to you paying lower interest amount. Moreover, the cost of insurance for old cars are lower than that of new cars.

  1. Warranty

Warranty for pre-owned cars is offered by most sellers, however, it is advisable to get the necessary checks to be done before purchasing a pre-owned car. These days whether you are purchasing a used car from platforms like Cars24, OLX, True Value, Spinny or any other Used- Car sellers from your city, most of them offer a guarantee for the car for 6-12 months. 

  1. Greater Options  

With more options available within a particular budget bracket, the customers have a wider variety of cars to choose from.  

  1. Try it Out

Owing and maintaining a car is not easy. It is to a great extend a life-changing decision given that it impacts your day-to-day movement. A used car helps you ‘test-drive’ a life as a car owner. Say for instance how confident are you of driving your own car? Can you afford a full-time driver? Are you ready for the additional sim-annual or annual expenditures which accompanies buying a car, etc. A used car will help you answer these questions without you making a huge financial commitment.

Not surprising, but the pre-owned car industry in India is expected to clock a growth rate of 15% in the coming year.4[source] As per the study, smaller towns will fuel the demand for second-hand cars, with the share of non-metro cities in used car sales expected to rise from the current 55 percent to almost 70 percent, four years into the future.5[source]

In a city like Bangalore where public transportation system is still developing, private cars become somewhat of an imperative. There is no dearth of pre-owned cars in Bangalore, and you can always avail Alphation Auto’s service to maintain your car in top condition. A thorough computer search can help you buy the best pre-owned hand cars in Bangalore. We believe this article would help you in making an informed decision.

Reference (Source) Links:

1. https://www.timesofindia.com/

2. https://www.mordorintelligence.com/industry-reports/india-used-car-market

3. https://cleartax.in/s/gst-on-cars

4. https://economictimes.indiatimes.com/industry/auto/cars-uvs/indian-used-car-market-to-grow-12-14-in-next-few-years/articleshow/87335065.cms

5. https://www.autocarindia.com/car-news/used-car-market-to-be-twice-as-big-as-new-car-segment-by-fy2025-421140