PDA

View Full Version : who pays for warranty work


dncsion
06-03-2004, 11:34 PM
I was just curious, you hear so much of a dealer not wanting to work on a car because it is under warranty and that probably goes on with all makes. But does the factory pay the dealer for labor? If so is it the full price that anyone would pay for labor not done under warranty? Who pays for the parts? Do they share cost like the factory pays for the parts and the branch pays the labor out of their own pocket? I was just wondering if anyone knew.

ChrisION
06-03-2004, 11:40 PM
I would imagine that the dealer buys the parts at wholesale prices from the mfg. and then charges more for them plus labor on non-warranty work, so I guess it's the dealer who is losing out. As far as I know, the mfg. wont reimburse for labor. :dizzy:

robh456
06-03-2004, 11:56 PM
GM pays the dealer for the cost of warranty repair labor, but the rate they pay is generally NOT as much as the dealer would charge for out-of-warranty repairs. Therefore some dealers are known for giving out-of-warranty repairs priority, or cutting down the amount of diagnosis time, etc. they spend on warranty repairs..

Jaseball
06-04-2004, 12:55 AM
Or ignoring any reported issues until someone is out of warranty. I really hate when they try to play that game.

bama
06-04-2004, 06:13 AM
This is how it works for warranty work on computers and electronic equipment...

Customer brings in item. Service person decides if it is warranty related. Service person gets payed $45 flat rate instead of $60/hour. Service person spends 3 hours fixing item. Customer gets item back very satisfied. Service manager wonders why there is no money in register and service person has been working is butt off all day. Service manager then sees a pile of paperwork for warranty claims and then realizes why there is no money in register. Service manager spends an additional three hours doing paperwork for his $45.

Or something like that ;)

Bill

jinjimbob
06-04-2004, 10:28 AM
Think its $80 or $85 per hour out here, they have a contract with GM to charge lower rates for their work.

MoparNut
06-18-2004, 10:35 PM
bama was pretty darn close. Saturn pays a low fixed hourly rate and restricts parts markup on warranty work. They also refuse to pay diagnostic time unless it is a real oddball problem that takes way longer than it normally would. This makes it very difficult to take the time to make a quality diagnosis and encourages 'throwing parts at it' until the problem goes away. Saturn then audits dealer for spending too much on warranty parts and can charge the dealer back for the entire repair-nice.

They also pay far less time to the tech for the same job than a customer-pay repair. So often times the tech will get paid for a fraction of the time he spends working on the car and works for free the rest of it. Flat rate sucks-have you hugged your mechanic today?

dncsion
06-18-2004, 10:47 PM
Originally posted by MoparNut
bama was pretty darn close. Saturn pays a low fixed hourly rate and restricts parts markup on warranty work. They also refuse to pay diagnostic time unless it is a real oddball problem that takes way longer than it normally would. This makes it very difficult to take the time to make a quality diagnosis and encourages 'throwing parts at it' until the problem goes away. Saturn then audits dealer for spending too much on warranty parts and can charge the dealer back for the entire repair-nice.

They also pay far less time to the tech for the same job than a customer-pay repair. So often times the tech will get paid for a fraction of the time he spends working on the car and works for free the rest of it. Flat rate sucks-have you hugged your mechanic today? Youre darn right and thats how we get "parts changers" rather than mechanics. Being a mechanic myself and having a brother who a tech at Honda, I know all about the situation. A car needs an EGR valve, how do you know it does? You dont. You can work on it all day to find out it needs an EGR valve but you only get paid for the 20 minutes it takes to replace the EGR valve. Its really not fair to the tech. But my hat does go off to Honda, he has been sent to several Honda specialty schools in Richmond VA to learn more about the cars at no cost to him. I hope for our sake as Saturn owners they do the same.

OhioVueBoy
06-18-2004, 11:44 PM
Originally posted by dncsion
I hope for our sake as Saturn owners they do the same.
They do the same. They get sent to Spring Hill, and even get a car to drive down there and back from work.

As far as teh warranty pay.. we have one tech who does nothing but warranty work - but he does so much he cleans up on it. I have seen techs get into rather nasty arguments over who gets stuck with warranty work.
~D.J.~

wrg813
06-19-2004, 12:32 AM
It's not the warranty work that bothers the techs at facilities. It's the lack of information for known problems! They are techs and very knowledgable of how things work. But if there is a known issue and the supplier and developer are arguing who''s part or process is to blame for a concern, it is very frustrating to the tech, service consultant, service manager and eventhe facility consultant in the end. Just venting. I hope every concern can be corected