View Poll Results: Would you buy an "all inclusive" monthly service plan from your local indy?
Yes
6
20.69%
No
23
79.31%
Voters: 29. You may not vote on this poll
Would you buy an "all inclusive" service plan from your indy?
12-22-2017, 02:22 PM
#1
Three Wheelin'
Thread Starter
Would you buy an "all inclusive" service plan from your indy?
Why dont more indy's offer "all inclusive" service plans in lieu of buying an extended warranty from a third party?
I've debated buying a extended warranty but the economics just don't make sense and the buying process sucks. Economics 101 teaches you the cost of insurance is driven up by the moral hazard it creates.
The exploding cost of healthcare in the US is the prime example. A fee-for-service model does nothing to encourage low-cost, high-value services, like preventive care. The Affordable Care Act is (was) trying to address this by flipping the model around with bundled payments and accountable care organizations. These programs provide fixed amount to healthcare provides for all the services a patient is expected to need, thereby incentivizing them to keep patients healthy and out of the ER.
Why haven't more indy's applied this model to their customer base?
The model is simple: You pay a fixed monthly fee that includes all the services your car is expected to need over a 2-3 year timeframe: oil changes, wear and tear, preventive maintenance, etc. Any major repairs you pay for parts but labor is free.
Your indy gets a consistent cash flow stream, which affords a higher quality of service, and is heavily incentivized to keep your car running healthy. In return the customer gets a consistent expense, peace of mind, and a more enjoyable ownership experience.
Lets say your indy could provide a service like this for roughly what collision insurance costs, would you buy it?
I've debated buying a extended warranty but the economics just don't make sense and the buying process sucks. Economics 101 teaches you the cost of insurance is driven up by the moral hazard it creates.
The exploding cost of healthcare in the US is the prime example. A fee-for-service model does nothing to encourage low-cost, high-value services, like preventive care. The Affordable Care Act is (was) trying to address this by flipping the model around with bundled payments and accountable care organizations. These programs provide fixed amount to healthcare provides for all the services a patient is expected to need, thereby incentivizing them to keep patients healthy and out of the ER.
Why haven't more indy's applied this model to their customer base?
The model is simple: You pay a fixed monthly fee that includes all the services your car is expected to need over a 2-3 year timeframe: oil changes, wear and tear, preventive maintenance, etc. Any major repairs you pay for parts but labor is free.
Your indy gets a consistent cash flow stream, which affords a higher quality of service, and is heavily incentivized to keep your car running healthy. In return the customer gets a consistent expense, peace of mind, and a more enjoyable ownership experience.
Lets say your indy could provide a service like this for roughly what collision insurance costs, would you buy it?
Last edited by TheBruce; 12-22-2017 at 03:17 PM.
12-22-2017, 02:41 PM
#3
Nordschleife Master
Why dont more indy's offer "all inclusive" service plans in lieu of buying an extended warranty from a third party?
I've debated buying a extended warranty but the economics just don't make sense and the buying process sucks. Economics 101 teaches you the cost of insurance is driven up by the moral hazard it creates.
The exploding cost of healthcare in the US is the prime example. A fee-for-service model does nothing to encourage low-cost, but high-value services, like preventive care and patient education. The Affordable Care Act is (was) trying to address this by flipping the model around with bundled payments and accountable care organizations. These programs provide fixed amount to healthcare provides for all the services a patient is expected to need, thereby incentivizing them to keep patients healthy and out of the ER.
Why haven't more indy's applied this model to their customer base?
The model is simple: You pay a fixed monthly fee that includes all the services your car is expected to need over a 2-3 year timeframe: oil changes, wear and tear, preventive maintenance, etc. Any major repairs you pay for parts but labor is free.
Your indy gets a consistent cash flow stream, which affords a higher quality of service, and is heavily incentivized to keep your car running healthy. In return the customer gets a consistent expense, peace of mind, and a more enjoyable ownership experience.
Lets say your indy could provide a service like this for roughly what collision insurance costs, would you buy it?
I've debated buying a extended warranty but the economics just don't make sense and the buying process sucks. Economics 101 teaches you the cost of insurance is driven up by the moral hazard it creates.
The exploding cost of healthcare in the US is the prime example. A fee-for-service model does nothing to encourage low-cost, but high-value services, like preventive care and patient education. The Affordable Care Act is (was) trying to address this by flipping the model around with bundled payments and accountable care organizations. These programs provide fixed amount to healthcare provides for all the services a patient is expected to need, thereby incentivizing them to keep patients healthy and out of the ER.
Why haven't more indy's applied this model to their customer base?
The model is simple: You pay a fixed monthly fee that includes all the services your car is expected to need over a 2-3 year timeframe: oil changes, wear and tear, preventive maintenance, etc. Any major repairs you pay for parts but labor is free.
Your indy gets a consistent cash flow stream, which affords a higher quality of service, and is heavily incentivized to keep your car running healthy. In return the customer gets a consistent expense, peace of mind, and a more enjoyable ownership experience.
Lets say your indy could provide a service like this for roughly what collision insurance costs, would you buy it?
You really believe in that model? There's no free lunch, not in car servicing or healthcare... The model you are referring to will drive costs up inevitably and the 'HMO' model constrains choice.
12-22-2017, 03:15 PM
#4
I wouldn't, only because my main concern with them is the PDK. The oil changes ($150 each), brakes ($2k for OEM all around), tires ($1500 for a set with mounting and balancing) at say $2000 a year max in maintenance isnt my concern. However, the $10k cost of the PDK if it would fail is. It is for this reason that I will purchase Fidelity Platinum most likely on my car, but an overall maintenance plan I don't have a need for.
12-22-2017, 03:26 PM
#5
RL Community Team
Rennlist Member
Rennlist Member
Honestly I don;'t think an indy really knows what he/she is in for. And I would not want to be the one to test a big ticket claim. Insurers work because they are big and can spread and absorb risk.... not the model of a service station.
Peace
Bruce in Philly
Peace
Bruce in Philly
12-22-2017, 03:46 PM
#6
I hear you. I passed a 3 mm kidney stone at 2 am few weeks ago, total cost for ER visit that included CT scan with diagnostics, some pain meds and lab work, total cost was 11.5 k. I could have got a nice set of forged wheels for that. Granted I had a copay and a few other things, so my out of pocket was only 400 dollars. But whew! The CT alone was 7500. I’m guessing I was in the machine all of 10 minutes.
12-22-2017, 03:57 PM
#7
To the healthcare example. In theory - good. In reality, not so much. More and more money goes into healthcare every year. Most doctors do the best they can for the patient and don't order tests they don't need. For it to work you would need people to take care of themselves. And that will never happen.
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12-22-2017, 04:21 PM
#8
Three Wheelin'
I hear you. I passed a 3 mm kidney stone at 2 am few weeks ago, total cost for ER visit that included CT scan with diagnostics, some pain meds and lab work, total cost was 11.5 k. I could have got a nice set of forged wheels for that. Granted I had a copay and a few other things, so my out of pocket was only 400 dollars. But whew! The CT alone was 7500. I’m guessing I was in the machine all of 10 minutes.
12-22-2017, 06:06 PM
#9
Burning Brakes
It would be tough for an indy to do this, as mentioned above insurers are typically big and spread the risk out, not easy for an indy to do. Also, what happens if a major repair comes up in the first few months, the indy will be losing money on that customer, can the customer cancel anytime? How much has to be prepaid? What happens if you sell the car, want to quit the indy, or the indy wants to quit you? I'm sure we could brainstorm 100 other things that could go wrong. I agree that its good in theory, but implementation and making it a fair deal for both sides would be difficult.
12-22-2017, 09:45 PM
#10
Three Wheelin'
Thread Starter
Wow! Interesting feedback. I guess that answers the question why indy's don't offer this type of service :-)
I agree with the feedback your typical indy might no be able to afford a program like this. The only solution to that would be to spread the risk by creating a stand alone service that partnered with a number of indy's in each market.
I agree with the feedback your typical indy might no be able to afford a program like this. The only solution to that would be to spread the risk by creating a stand alone service that partnered with a number of indy's in each market.
12-22-2017, 11:12 PM
#11
Rennlist Member
This has been tried in other ares and it does not work. The indy will try and maximize revenues at the expense of your porsche. Anything that requires a large outlay of his time will not be done in favour of more expensive parts that require less time or a service that he may claim is outside of the scope of the maintenance schedule. No one wants to work for peanuts , or for free, or worse pay to work on your porsche at their expense with a net effect of paying you to work on your car. If you want to play , you have to pay!
12-23-2017, 10:31 AM
#12
RL Community Team
Rennlist Member
Rennlist Member
I wouldn't be interested in something like this. I prefer to do my own maintenance with my own parts on my own schedule. For someone who doesn't work on their own cars, it might be a different cost/benefit.
12-24-2017, 03:11 PM
#13
Three Wheelin'
Thread Starter
@Pete - of course you wouldn't because you would be the lead mechanic :-)
Interestingly enough it looks like Hartech is offering this type of service http://hartech.org/maintenance-plan. $240 a month for a 30k plan, all inclusive.
Interestingly enough it looks like Hartech is offering this type of service http://hartech.org/maintenance-plan. $240 a month for a 30k plan, all inclusive.
12-24-2017, 05:22 PM
#14
@Pete - of course you wouldn't because you would be the lead mechanic :-)
Interestingly enough it looks like Hartech is offering this type of service http://hartech.org/maintenance-plan. $240 a month for a 30k plan, all inclusive.
Interestingly enough it looks like Hartech is offering this type of service http://hartech.org/maintenance-plan. $240 a month for a 30k plan, all inclusive.
12-24-2017, 09:29 PM
#15
Rennlist Member
@Pete - of course you wouldn't because you would be the lead mechanic :-)
Interestingly enough it looks like Hartech is offering this type of service http://hartech.org/maintenance-plan. $240 a month for a 30k plan, all inclusive.
Interestingly enough it looks like Hartech is offering this type of service http://hartech.org/maintenance-plan. $240 a month for a 30k plan, all inclusive.
240 a month is 2880 a year.... so close to 9000 for 3 years.....after the inspection and fine print and they can exclude certain items if they want ......I dont see this as a good plan for me