How to go broke owning a VOLVO. Cost of Ownership.

Discussion in 'Volvo Forum' started by Minder Kat, Jul 4, 2012.

  1. Minder Kat

    Minder Kat Light Load Member

    77
    47
    Jul 4, 2012
    Brush, CO
    0
    Owning a truck nowadays is not an exercise for the faint-hearted soul. It is the cost of ownership that is the hairy monster in my truck.

    Why do I own my own truck?
    I felt that I was being ripped off by MachineryLink in Kansas City, MO. Being leased on to them I paid $650.00 per week to lease a Ryder unit. This included insurance and maintenance. All was good when all went well, but in wintertime, I had negative paycheks 8 weeks in a row. I was working for free while MachineryLink had all their commitments covered. Their freight were moved and their Ryder leases were covered. I was being had over a barrel.

    I decided to move on and I signed a lease with Lone Mountain Truck Leasing in Pacific Junction in Iowa. So I signed for a "previously owned by U.S. Express" VOLVO VNL780 with a D12 motor. It had 488 000 miles on the clock.

    The thought behind this was that the lower monthly payments would help me survive the slow winter. But even with the lower monthly payments, I was out on the road 28 days a month with negative paycheks from MachineryLink. This was my second winter with them boys from Kansas City, and I was planning on it being my last. I then figured it was time for my authority. OOIDA helped me on this one and since I am running under my own authority and working off Internet Truckstop and the DAT load board, I have never looked back.

    Owning your own truck absolutely makes a difference in revenue. Last financial year I had $183K in revenue, opposed to the $100K at MachineryLink in the previous years.

    The Hairy Monster
    When you sign a lease with Lone Mountain Truck leasing, it comes with a fancy 6 months National Truck Protection warranty. So, assuming mechanical failure of the engine and drivetrain, you have major breakdowns covered. What is not covered, is electrical components and everything "not running in an oil bath" . Like EGR valves, engine position sensors and coolant leaks.

    I knew this BEFORE I purchased the truck. I thought I was being smart by taking delivery of the truck in the morning, driving it to Omaha, NE and have a dealership do a thorough test on the ECM and while I am there, have it strapped down and hammer it on the dyno to see if there are any issues. If there were any issues, I had the option of returning it to Lone Mountain Truck Leasing within 24 hours and either select another unit or having the problems repaired.

    Neither the EGR valve problems, nor the coolant leak , nor the other couple of engine codes showed up on the dyno testing. But sure enough, they showed up as soon as I took my first 48k load up Loveland Pass in Colorado. And you guessed it, neither Lone Mountain Truck Leasing not NTP could save my sorry ### from the whipping I was about to get from VOLVO.

    THE HAIRY MONSTER GETS TO EXIST BECAUSE OF THE FACT THAT HIGH RISK ITEMS LIKE ECU'S, ELECTRICAL COMPONENTS AND HIGH TECH ITEMS ON TRUCKS ARE NEVER INCLUDED IN AFTERMARKET WARRANTIES AND ARE BILLED TO THE MAX BY MANUFACTURERS. LEAVING THE OWNER OF THE TRUCK TAKING ALL THE IMPACT OF A MAJOR BREAKDOWN. (Funny how nobody complain about the replacement cost of a conrod or piston on a Volvo truck, but everybody fear an EGR valve or Engine ECU going out?)

    Denver VOLVO
    I did not rush back to the Volvo dealership in Omaha, NE to have the issues resolved. In fact I booked my fancy truck in for repairs 14 months later. I lived with the coolant leak, and my 2 engine codes grew to 6. Being prepared for the worst, I saved up $15 000.00 to have these issues fixed.

    And then I booked my truck in at Denver VOLVO. At first, you think that these people are true professionals, because they treat you like crap. It is only when you conclude business with them that you get the sensation that you have just been violently raped.

    Please note the sign on the wall at the service desk that states that a diagnostic fee will be charged. $126.00 per condition. I had 8 conditions. Upon check-in, I asked the gentleman at the check-in desk to speak to the mechanic making the repairs, because I had specific conditions that I needed him to take note of. For instance, the transmission that had an error upon disengagement from reverse. Or the low power code on the ECM. YOU ARE NOT ALLOWED TO SPEAK TO A SERVICE TECHNICIAN. THIS IS COMPANY POLICY.

    I described all these conditions in the best layman term I could. I then requested a quote from Denver VOLVO, to make sure I have enough money to pay the bill.

    DENVER VOLVO PLAYS THE 'CORPORATE PROFITS BEFORE CUSTOMER SERVICE' GAME TO THE MAX.

    Ballooning the Bill: Denver VOLVO
    Two days after check in, I had a call from some gentleman at Denver VOLVO. He said the repairs were going to be about $5300.00 and he asked whether he could proceed. I said yes, and thank you. Most rape victims do at some stage in their ordeal. I requested a faxed or e-mailed copy of the quote, and that never got sent to me. Not even after I asked.

    And two days later Denver VOLVO called again. This time to inform me that they are going to need some more parts and labor, and that the quote would be adjusted upwards by $ 1900.00. I said yes, but that night I could not sleep. I was constantly worrying about this repairs.

    And two days later Denver VOLVO called me again and said that they are unable to get rid of the fault codes on the engine, and now we need to replace the engine harness. At a cost of roughly $2000.00.

    And two days later Denver Volvo called me once more to tell me that my fancy Volvo is now repaired and that a mere $9 539.00 would release the truck. I was not happy with this, the amount pushed my cost of ownership of this truck equal to owning a brand new truck.

    Customer Satisfaction: Denver VOLVO
    As soon as I walked in to Denver VOLVO, the friendly service desk attendant asked me how I will be paying, and by the way, good afternoon. I handed them a cashiers check and he gave me the key. I asked to speak to the technician who performed all the repairs and the service desk manager told me sorry, you can't. Well, since my truck was now "fixed" and the bill paid, all I had to do was to get behind the wheel and make some money, right? Wrong.

    Upon starting the truck the oil level sensor malfunctioned. Patiently I went back to the service desk and said that the oil level sensor malfunctioned. Amongst the back and forth on how and when this was going to be fixed, I agreed to pick up the truck later on. From a distance I looked at the activity in the shop. Sure, some overweight technician dropped the oil in a drain pan. removed the sump, and screwed around with something underneath. And then took that same oil that they just dumped in the drain pan and poured it right back into the engine. No amount of ######## about that to the service desk could change their methods, though. Oil is expensive, remember.

    Eventually I took off in my fancy truck with the new dirty oil. And TWELVE MILES DOWN THE ROAD, all the ECU engine faults were back. THE WHOLE LOT. I AM ####TIN' YOU NOT. The only thing that were fixed was the coolant leak. I returned to Denver VOLVO, only to be told by their service manager that they can not help me. And if I have a problem with that I can return the next day to speak to the service manager. They have been paid, all their responsibility was done.

    The next day the service manager was conveniently unavailable and when I finally got to voice my concerns with him ten days later, he said that I am welcome to book my truck in for them to look at it and advise me on the problems. At another $126.00 per condition. Are you ####tin' me? He was dead serious.

    The long and the short of my visit to Denver Volvo was that I had a coolant leak fixed at a cost of $9 539.00

    Why are you not happy with Denver VOLVO?
    As owner of the truck being worked on, you have no control over any part of the repair process. You cannot question anything, they will feed you any story without showing you how they have come to their conclusion. They play the guessing game as much as I do.

    You cannot go by the quote they give you. Because the diagnosis is ALMOST ALWAYS wrong in the first place. By design, I believe.

    There is no way to effectively communicate what the problem is, or how to solve it. It's their way or the highway. They tell you what is wrong and they tell you what the solution is and they tell you how much it is going to cost. Period.

    You end up buying parts and services that you did not need in the first place. Like, say, $2 000.00 engine harnesses.

    The customer is always wrong. After all, what do they know? Customers have no access to decision making tools or diagnostics IN ANY CASE.

    The labor comes to 50% of most bills. This is a clear sign of workshop inefficiency.

    The Solution?
    After my ordeal with Denver Volvo, I was ready to go to school myself to become a Volvo technician. If Denver VOLVO sets the standard in service and cost, be sure to be out of business at your next breakdown.

    Three months later I had another breakdown. This time it was the same transmission fault that Denver VOLVO could not figure out. I had to deal with the Hermiston VOLVO repair shop in Hermiston, OR.

    For starters, they charge $89.00 per hour. No diagnostic fee per condition. And you get to communicate every troubleshooting step with the technician, even see what they see and have it explained to you. It turns out that, apparently it was the transmission wiring harness that caused the engine faults. Bad connections, bad wires and a bad transmission ECU. As soon as the transmission ECU were replaced, the engine fault codes disappeared.

    Agreed, Hermiston VOLVO cannot get it right all the time, and yes, you are still going to end up buying parts you did not need. But the labor cost on my latest bill was only 10% of the total bill. I am much more satisfied with the whole process than Denver or Kansas City Volvo. My bill at Hermiston VOLVO ran a total of $10 474.00.

    One thing I've learnt from Hermiston Volvo is that a condition sometimes has to get worse before it can be properly diagnosed and repaired. If you cannot replicate a fault consistently, do not even bother asking, even though it is recorded to the ECM. That, my dear friends, is the magic of it all. All the fancy electronics, diagnostics and flowcharts left me in no better position than my buddies without the gadgets. Please tell me that Volvo diagnostics is the gold standard in resolving $1 350.00 issues with $10 474.00 fixes.

    I am not advocating that Hermiston Volvo is the Volvo superhero, but they still beat the crap out of Denver Volvo's performance. THE HUNT IS ON FOR REPAIR SHOPS WITH HONESTY, EFFICIENCY AND INTEGRITY. PAY ATTENTION.

    Maths.
    As business owner you constantly do the math on how to run the most profitable operation. You run the spreadsheets and you count the pennies. Unfortunately, the cost of ownership on a used VOLVO by far exceeds the cost of ownership of a new Freightliner or Peterbilt.

    Maybe I should go on the tech course and maybe I should put up a shop and do the repairs myself. But it does not make sense. Stick to what you know, and what works. Ever seen a Jack-of-all-trades living like a millionaire? Me neither.

    I have heard some Freightliner horror stories. But I have lived a VOLVO nightmare.

    I have spent in excess of $25 000.00 in repairs over the past 16 months. This excludes PM services and tires. The Denver and Hermiston VOLVO invoice was $20 013.00. This was on 160 000 miles. Maintenance comes to 15.5 cents per mile. The Freighliner Coronado running under my authority, same year, same miles, same trailer, is at 2.9 cents per mile. Imagine that.

    If you buy a new Volvo, you should purchase the MAXIMUM warranty extensions you possibly can. If you intend to buy a used VOLVO, see a bankruptcy lawyer first.
     
    Last edited: Jul 5, 2012
    Sani101, Loke, jsnell and 11 others Thank this.
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. MNdriver

    MNdriver Road Train Member

    7,985
    4,366
    Feb 24, 2012
    0
    not the first one to describe the raping over the coals for volvo's. I always have liked them. But this is why I avoid them.
     
  4. dOktOr

    dOktOr Bobtail Member

    32
    7
    Sep 5, 2009
    0
    ...had to read this story a couple of times to make sure I was reading this right...
    With all due respect, it's kinda hard for me to sympathize with you on this (not to say that these kind of things don't happen at all) :biggrin_25512:

    ...but a valuable (and expensive) lesson learned, I hope...
     
  5. LBZ

    LBZ Road Train Member

    1,770
    1,261
    Oct 22, 2008
    Road to Nowhere
    0
    There needs to be a HOLY CRAP button instead of thanks. I hate hearing stuff like this, but hopefully it will stop trucks from going to those mentioned above. I'd end up looking like Wylie Coyote with everything supplied via ACME to handle the shop. ;)
     
    brsims and Minder Kat Thank this.
  6. dOktOr

    dOktOr Bobtail Member

    32
    7
    Sep 5, 2009
    0
    Oh god, there's more to the story since I last read it??? :biggrin_25521:
     
  7. dOktOr

    dOktOr Bobtail Member

    32
    7
    Sep 5, 2009
    0
    ...more like the BEND OVER/NO VASELINE button...:biggrin_2551:
     
  8. bravoo67

    bravoo67 Light Load Member

    252
    34
    Mar 15, 2012
    Brooklyn NY
    0
    dealer stealer !!! sorry to here that man.. so far I got my self into very similar story...
     
  9. MNdriver

    MNdriver Road Train Member

    7,985
    4,366
    Feb 24, 2012
    0
    I'd have found a new shop as soon as they said NO talking to the tech and $126 per fault code.
     
    cetanediesel and larry2903 Thank this.
  10. dOktOr

    dOktOr Bobtail Member

    32
    7
    Sep 5, 2009
    0
    ...in retrospect, it's posts like these that can be very educational in warning others never to follow this same path. It's unfortunate we're sometimes forced learn these things at another person's expense...the humanity of it all...:biggrin_2556:
     
  11. Minder Kat

    Minder Kat Light Load Member

    77
    47
    Jul 4, 2012
    Brush, CO
    0
    I am the first to admit that I have made several mistakes in this sad story. But Warren Buffet said that the rearview mirror always gives 20/20 vision and the windshield is like fogged up glass. Could have, would have, should have. I wrote this painfully true story not for the experienced trucker that knows his way about shops, parts dealers and crooks, but for the guy who is tempted to sign that good deal at Lone Mountain or Arrow Trucks. If you have to sign, sign for that Freightliner or Pete. The Volvo business model is designed to make the Volvo shareholders money, not the sorry-### trucker doing all the work. And hey, I do not feel sorry for myself, despite all this, I am convinced that I have still made way better money than working at Wallie-world or flippin' burgers at McDonalds.

    My question for the experienced trucker is: Where do you go for service and be satisfied with the end result? It is all a function of time and money, but sometimes I cannot help but feel wronged by the Volvo business model:
    (VTT invest in companies that have a business model leading to a profitable company. Developing a profitable business increases the value of the company and provides improved returns on invested capital.)

    In plain English that means: How can we at Volvo screw our customers to the max, and in the process extract as much cash from them as possible?

    OK, I got a little carried away there. My question for the experienced trucker is: Where do you go for service and be satisfied with the end result?
     
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.