Are Your Courtesy Cars Losing You Money?

Written anonymously by a Garage Insider

Courtesy cars have become one of those things customers simply expect. Drop your car off, collect another one and carry on with your day.

It feels like good customer service.

But have you ever stopped to work out whether your courtesy cars are actually making your business money?

Most garage owners know what they cost. Insurance, servicing, tyres, road tax, depreciation and repairs all add up. Then there is the hidden cost. Checking driving licences, completing paperwork, cleaning them, chasing customers when they are returned late and dealing with the inevitable scratches that nobody seems to know anything about.

None of that is free.

It would be easy to conclude that courtesy cars are simply an expensive headache.

I don't think that is true.

A courtesy car is not just another vehicle sitting on your forecourt. It is a facilitator of customer spending.

Think about it. A customer who can still get to work, collect the children or carry on with their normal day is much more likely to authorise the repair you've recommended. Take away their transport and suddenly that £1,200 repair becomes something they will "do next month". The courtesy car has removed a barrier to saying yes.

That changes the conversation completely.

Instead of only asking what the cars cost you each year, perhaps you should also be asking how much revenue they help generate. If your courtesy car fleet costs £20,000 a year to operate but helps secure hundreds of thousands of pounds worth of workshop sales that might otherwise have been delayed or lost, it is doing exactly what it should.

The problem is that very few garages measure either side of the equation.

Some owners see courtesy cars as a necessary evil. Others see them as a free customer benefit that simply has to be absorbed into the business. I would argue both approaches miss the point.

Courtesy cars are business assets.

Like every other asset, they should justify their place. They should make life easier for customers while contributing positively to the business. If they are sitting idle, constantly damaged or being handed out without thought, perhaps your policy needs reviewing. Equally, if they are helping customers commit to larger repairs and improving loyalty, they may be one of the best investments you have.

The lesson is bigger than courtesy cars.

Independent garages are generally very good at measuring workshop efficiency and labour sales. We are often far less effective at measuring the value of the services wrapped around them.

So here is the question.

When was the last time you worked out whether your courtesy cars are simply costing you money, or quietly helping your business make far more than they ever cost?