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Old 24th March 2021, 19:31   #1
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Is proximity of dealerships / service centres one of the influencing factors in car purchases?

A lot of factors influence an individual's vehicle buying decision, especially the four wheelers. First and foremost is the pricing, followed by the looks, safety and covenience features, fuel type, performance, maintenance cost, interior space, resale value, to name a few. Of course, the order of precedency might not be the same for everyone. In addition to these obvious factors, IMO, proximity of the dealerships/service centres have a major say in the vehicle buying decision. This is more relevant especially in smaller towns and probably not so in major cities. To put things into perspective, I would like to take my hometown as an example, a rural place about 17 Kms and 100 Kms away from the taluk and district headquarters respectively. I am listing out the dealerships/service centres of a few automakers and their proximity to my hometown.

Maruti Suzuki
Dealership/Service centre with body shop - 18kms
Nexa Dealership - 100 kms approx.

Hyundai
Dealership/Service centre - 50 kms
Service centre with body shop - 100 kms approx.

Mahindra and Mahindra
Dealership/Service centre and body shop - 50 kms.

Tata Motors
Dealership - 18 Kms(opened recently)
Service centre - 50 kms
Service centre with body shop - 100 kms approx.

Renault
Dealership - 50 Kms
Service centre and body shop - 100 Kms approx.

Kia Motors/Toyota/Ford/Honda/Volkswagen/Skoda/MG
Showroom/Service centre and body shop - 100 Kms approx.

Mercedes Benz/JLR/BMW/Audi
Showroom/Service centre - 100 Kms approx.
This segment of cars may not have much relevance for the intended discussion.

Note: Only Maruti and Hyundai have multiple showrooms and service centres(atleast 3) within 100 Kms distance from my hometown.

It is not at all surprising that Maruti Suzuki cars are the ones most seen on the roads followed by the rest, pretty much in the order of the list above. Yes, it may not be a major issue for an individual to take delivery of a vehicle from a dealership 100 Kms away or even going for a scheduled service twice or thrice in a year. But it can get cumbersome, when you want to test drive different cars or a same car multiple times, when you have minor but bothersome niggles, minor or major accidental repairs and breakdowns. Even scheduling a service appointment as per your convenient time may not be that easy. With a solitary dealership in an entire district, if a car owner is not happy with quality of service provided or any other reason for that matter, the owner is left with no choice other than travelling to the next city/town/district just to get the car serviced. I know a couple of people in my hometown, who own Ford and Renault cars, travel to Mysore which is about 165kms from here just to get their cars serviced. Not everyone can afford to travel that long just to get their cars serviced or a minor niggle rectified. Just imagine the plight of a car owner, if the car turns out to be niggle prone. Also what we have to understand is not every car owner is an auto enthusiast. For a lot of people, a car is just a mode of transport from place A to B. For such car owners particularly and in general for everyone, proximity of service centres does help with regards to ease of maintenance.

I am pretty sure that there are a lot of such towns/villages in our country where the majority of car dealerships have absolutely no presence and when present, they are few and far. In such a scenario, proximity of the dealerships/service centres becomes a compelling factor as far as car buying decision is concerned for a lot of people, if not for everyone. It is one of the key factors if you ask me, is it a factor for you guys?
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Old 24th March 2021, 20:30   #2
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Re: Is proximity of dealerships/service centres one of the influencing factors in car buying decisio

I realized the importance of having a dealer/service center in your backyard during the lockdown. I live in Kochi but during the lockdown due to a medical emergency in the family was stuck in my hometown Kannur. I had to get some basics for my ride back then, Octavia 1.8 TSI. When I started calling numbers available on Google it hit me, at the time the only dealer service center available closest to me was EVM in Kochi. My 15,000 km, first service was almost up. For the basics like washer fluid, cleaning kit etc I was able to source from VW (only after I was able to share the details of a VW car from my close circle). For the 15k service I had to drive to Kochi and get it done. Things may have changed, as per the customer care Kozhikode Service center had put their operations on hold during the lock down phase.
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Old 24th March 2021, 21:00   #3
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Re: Is proximity of dealerships/service centres one of the influencing factors in car buying decisio

My latest car purchase was a 5th Gen Honda City and there were 2 dealers with their respective service centers in my city. The main factor I settled on one of them was proximity to my residence. Makes it easier to visit them for any service related issues.

But in the greater context, would I go for a brand if they don't exist nearby ? I would say that would depend on my financial capability or time. My drivers could take the car to the service center if they are far off, but would that work out for everyone ? Also what about someone in a 9-5 job, working 6 days a week who has to rely on pick up for the service or any issues ? They are most likely to go for a brand that has a service center nearby. This is one of the reason Maruti Suzuki trumps. Even after that they have introduced doorstep servicing of some form. I feel other brands should do this too for minor services.
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Old 24th March 2021, 21:07   #4
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Re: Is proximity of dealerships/service centres one of the influencing factors in car buying decisio

Proximity of dealership is an advantage but not the necessary criteria to pick a brand for car purchase. I would choose a product that has quality build, quality performance and long term durability and reduced maintenance (less visits to dealership). During the warranty period, I would get the car serviced at company dealerships, however, post warranty expiration, I only get it serviced via trusted FNG. Since I live in a city, I expect there are sufficient dealership service centers to be present spread across the city and that is sufficient for a car buy. Dealerships offer to send drivers to pick and drop cars (Hyundai and Toyota in my case) and I don't visit dealerships during free services and hence do not see the need for proximity.
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Old 24th March 2021, 21:12   #5
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Re: Is proximity of dealerships/service centres one of the influencing factors in car buying decisio

It’s definitely a good to have although a SVC that’s inconveniently located wouldn’t put me off necessarily if I am otherwise completely sold on the car in question. Cars today need service all of once a year and most offer pick up and drop facilities. For anything important, my BMW visits the Turbhe workshop in Navi Mumbai instead of the Lalbaug outlet of the same dealership (for context, Turbhe is 35 kms away and Lalbaug 3.5 kms from my residence). All because fellow BHPian Maverick (Sushil) operates out of Turbhe and I have an equation of trust with him. Similarly for FNG matters, I trust mod Akshay1234 who’s base is at the other end of the city.

So I would say for me, the car I buy matters and location or proximity of the service centre would not be a deal breaker.

Last edited by Sheel : 25th March 2021 at 09:00. Reason: As requested.
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Old 24th March 2021, 21:16   #6
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Re: Is proximity of dealerships/service centres one of the influencing factors in car buying decisio

It wasn't so at the beginning but when I actually went to buy a car it was indeed!

I got my Ignis from Nexa shared with Maruti Suzuki and has a body shop at exact 18 Kms from my ancestral home and less than 5 Kms from my new home.

The convenience of having a car showroom in close proximity is truly a blessing.
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Old 24th March 2021, 21:49   #7
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Re: Is proximity of dealerships/service centres one of the influencing factors in car buying decisio

The answer to the title question, for me, is NO. I would not choose a car based on proximity of dealer or service centers. Each of my car purchase decisions were based on a detailed research of cars available in my budget, multiple test drives and then choosing the car that best met my requirements and also pulled at my heartstrings.

However, after having chosen a car to buy, I usually went to the nearest dealership of that particular brand. But that dealership was never the deciding factor in itself.

For example, back when I used to stay in the US, I was considering either Audi A4 or BMW 3 series. I visited Audi and BMW dealers in far corners of Chicago (where I used to stay at that time) and test drove the cars at length. Finally when I decided on Audi A4, I went to the nearest dealer for actually buying that car. But before that, as a part of my research, I had even visited Audi showrooms in the outskirts, some even 25-30 miles away!

Same was the case when I purchased a Maruti SX4 and then later a BMW 320d in Bangalore. I had visited dealers from all corners of Bangalore and test drove many cars. But when I finally decided on a Maruti SX4, I went to the dealer which was right across my office and bought a car from them. That time the location was key in choosing that particular dealer (but not in choosing that particular brand/model in the first place).

Thus, I am always game to travel far away and search across far away areas for the car I love. However, once I decide what I want, and if there happens to be a dealership nearby, I am very likely to go there to close the deal.
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Old 24th March 2021, 21:50   #8
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Re: Is proximity of dealerships/service centres one of the influencing factors in car buying decisio

For me, the list in decreasing order of priority (with two added factors):
1. FNG who knows the car well
2. Availability of spares (can be off the counter like MGP and Tata or through courier that I have seen some VAG owners resorting to)
3. Authorised service centre
4. Dealership

This is simply on the assumption that I need to visit the FNG most frequently for minor jobs which may not require spares, such as simple denting and painting or tightening a few lose fittings (yes I own a Maruti). Then comes the need for spares which ideally should be a second choice, as most modern cars require spares only once a year and that can be planned ahead of time. The authorised service centre is just for warranty and very complicated or exclusive jobs (maybe an AT oil and filter change). Dealership matters the least as you only need one or two visits to buy the car and that's the end of their story in the ownership usually (unless handed over a lemon, which then becomes a second home).

Disclaimer: I usually prefer pre-owned examples and direct availability of spares without sending my car to the ASC is a huge part of my decision. So I have only shortlisted Marutis, Tatas, Mahindras, Toyotas and Fords most of the time till now.

Last edited by Researcher : 24th March 2021 at 21:52.
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Old 24th March 2021, 21:57   #9
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Re: Is proximity of dealerships/service centres one of the influencing factors in car buying decisio

I would say upto an extent and depending on the buyer. People like us, who loves cars and driving, cannot make a decision purely based on the dealer/service network. It is the car itself that matters the most. We cannot own and drive a car that we do not like to drive, but just for the sake of service center being close. Servicing our cars is once in 10,000 kms mostly, but it is the car that takes us those kilometers.

But the service availability still matters to an extent. If the service center is not located in your city or not within a decent travel range, then yes, it is a major drawback in purchasing that particular brand. One can travel 10s or maybe a few 100 and odd kilometers every service, but driving around 300 kms or more for every service may become a pain in the later times, unless you have a driver to do it.

On the other side of customers, for whom a car is just a mode of transportation, then I would say the dealer/service network matters. Such people may not mind buying another brand, but they may have trouble taking it far away for service every time.

So I would say it really depends on the type of buyer and how far the closest service center is. If that is the car you want and if the service is decently distanced away, then it should be ok buying that particular car. If you aren't really keen on a particular model and if service is an issue, then I would suggest you to stay away.
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Old 24th March 2021, 23:39   #10
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Re: Is proximity of dealerships/service centres one of the influencing factors in car buying decisio

Yes.

A vehicle that runs regularly is susceptible to all sorts of elements, from regular wear and tear to breakage and breakdown etc, having after sales support not only where you live but also in places where you are likely to visit is a big plus.

I will not put my money on brands that has less than stellar after sales reach from OEM as well as after market support, be it servicing as well as parts.

Our vehicles are daily drivers, there are things like broken mirrors, scratches and certain consumables like brakes , clutch etc that can't wait for next year's service, they need to be attended to Now. So one cannot be expected to take a long trip for that.

Certainly Maruti is the leader in this , the nearest Hyundai will be 1/3 the reach Maruti has. They have invested in this industry like nobody else, I think it's around 4000 outlets now.
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Old 25th March 2021, 06:54   #11
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Re: Is proximity of dealerships/service centres one of the influencing factors in car buying decisio

I used to be the guy who simply used to debunk this idea of having the service center nearby, but now it's changed. It is extremely important for me to have a 'good' service center close by. There were times when we used to travel 150-200 kms just for service, no thanks, not any more - too much of the opportunity cost is associated to it.

How much important I consider it now? I don't take the German cars to secluded places or when I go for some trip to some interior section. Only those which have service presence throughout the way are my preference.

Won't go deep into details, but would sum it up with just one statement:

"Doesn't matter if service is good or bad, at times, just having a service station nearby, hence saving a few days of your time is a luxury in itself"

When the nearest service station is 250 km away, then even enthusiasm also asks you to have maintained a balance between itself and the time & effort it takes!

I sold multiple cars, including a rare Honda flagship, and a 'mega reliable' Toyota flagship, just because the service center in the tier 2 cities was simply unable to take care of these cars, and amazingly, I faced such kind of issues with both of them, that I ended up driving them thousands of kilometers - just to get them repaired at the bigger service station, where the mechanics were aware of them.

These incidents have made me believe that until I live in a metro, I am following these two rules for lifetime:
  1. Buy only mediocre cars from the mediocre brands. If you live in a smaller city and want a premium car. Get the entry level from a premium brand, but never go with the premium product of an entry level brand. Be is Kizashi, Accord V6, even Crysta petrol, Camry, or LC, these brands can never support you in a small city like a premium brand can; even sitting 200 kms away. Their service team will work hard, but their mechanics are clueless about the car, no spares in inventory, company engineers need to visit you time and again - multiple issues!
  2. Buy the ones which sell more. In states like Uttarakhand and cities like Dehradun, better look less for exclusivity and more for practicality. When driving one way to service station is a 6 hour journey, you feel the heat for sure. Imagine how dreadful a warning light, like say 'check engine' light will look when you are 200 kilometers away from the nearest A.S.S.

Last edited by VKumar : 25th March 2021 at 07:12.
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Old 25th March 2021, 07:01   #12
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Re: Is proximity of dealerships/service centres one of the influencing factors in car buying decisio

May be you need to make this a poll.

In my case, although every car manufacturer has their ASC in my little old town called Madrasapattinam aka Chennai within a vicinity of not more than 20 Km, I still chose to stick with Maruti for now. Why?
  • They take customer complaints seriously
  • Because, buying is one time affair, maintenance is for lifetime
Even if I visit one Nexa ASC a year to get my SCross serviced, it will take atleast a decade to visit the same Nexa (not Arena); I'm positive one of the Nexa will prove trust worthy at any point for even most complex issues to be diagnosed.

Driving through the country? Arena to rescue; even the remotest part of town/village should have one ASC atleast to stay out of harms way, if not trouble.

Last edited by aargee : 25th March 2021 at 07:08.
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Old 25th March 2021, 07:28   #13
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Re: Is proximity of dealerships/service centres one of the influencing factors in car buying decisio

Quote:
Originally Posted by VKumar View Post
I used to be the guy who simply used to debunk this idea of having the service center nearby, but now it's changed. It is extremely important for me to have a 'good' service center close by. There were times when we used to travel 150-200 kms just for service, no thanks, not any more - too much of the opportunity cost is associated to it.


These incidents have made me believe that until I live in a metro, I am following these two rules for lifetime:[list=1][*]Buy only mediocre cars from the mediocre brands. If you live in a smaller city and want a premium car. Get the entry level from a premium brand, but never go with the premium product of an entry level brand. Be is Kizashi, Accord V6, even Crysta petrol, Camry, or LC, these brands can never support you in a small city like a premium brand can; even sitting 200 kms away. Their service team will work hard, but their mechanics are clueless about the car, no spares in inventory, company engineers need to visit you time and again - multiple issues![*]Buy the ones which sell
Exactly! The adage, proof of the pudding is in the eating, has much reference to the subject in discussion.

Quote:
Originally Posted by aargee View Post
May be you need to make this a poll.

In my case, although every car manufacturer has their ASC in my little old town called Madrasapattinam aka Chennai within a vicinity of not more than 20 Km, I still chose to stick with Maruti for now. Why?
  • They take customer complaints seriously
  • Because, buying is one time affair, maintenance is for lifetime

Driving through the country? Arena to rescue; even the remotest part of town/village should have one ASC atleast to stay out of harms way, if not trouble.
This is one of the main reasons, why Maruti is just unbeatable in smaller towns and rural places. Hyundai is catching up slowly. But, they don't have enough models in the lower price bracket to make significant dent to Maruti sales.
Yes, a poll would be useful.

Last edited by Emvi : 25th March 2021 at 07:40. Reason: Line added
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Old 25th March 2021, 08:24   #14
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Re: Is proximity of dealerships / service centres one of the influencing factors in car purchases?

No way, definitely not for me. I value competence & my relationship with the service advisor over proximity. As an example, my 5-Series goes 1 - 1.5 hours away to Turbhe or Jogeshwari, even though there is a service outlet 15 minutes from my place at Worli. Reason = relationships & comfort level. My Jeep currently goes to Shanbagh who is very close to home, although my next-best option is an incredible Jeep expert somewhere near Madh Island (1.5 hours).

My cars visit the workshop an average of once / year, as is the case with most BHPians. I don't care about the extra 60-minute commute for the additional comfort level & trust. I never drive myself to the workshop anyway as I use their pickup & drop service (no time on weekdays to do it myself & weekends are for fun).
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Old 25th March 2021, 11:18   #15
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Re: Is proximity of dealerships / service centres one of the influencing factors in car purchases?

Is this really an issue. I live in the suburbs of Chennai and within a 10 km radius there are half a dozen Maruti, Hyundai , Mahindra , Tata dealerships of each brand and 2-3 dealerships of Skoda, VW, Fiat, Renault etc. Even premium showrooms have a presence.

That said competency is a real issue with company dealerships that I usually go with a competent FNG which can finish general service in 1 hour in my presence. This however is not feasible now as I have a new car for the first time and stuck with Mahindra dealerships.
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