How much does a dealership get paid by DC for warranty work in comparison to direct customer billing? ie is it reduced hourly compensation than direct billed to customer amounts?

I read here of numerous occassions where customers are rejected work under warranty by the dealership for whatever reason. Don't the dealerships have an incentive to do warranty work or does DC cheap out on the compensation to the dealership? Or does DC scrutinize jobs or limit time per job?

Is there a profit incentive for them to decline warranty work and get you to pay ie. you pay more than DC to do work?

I have a GM vehicle in for warranty work and they seemed more than eager to do it.

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If some dealer refuses to do warranty work, it seems to me they would lose their franchise. Doubt anyone would chance that.

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Typically, the service manager has descretion as does the DC regional rep. U gotta esculate to make sure they aren't trying to run you around but I wanted to understand any alternate motives a dealer would have to accept or decline warranty work.

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I'm moderately up on my warranty rules.

I fairly certain its like this.

Dealers get paid for warranty work.

However, DCX can refuse the claim when the paperwork is sent in and say it doesn't qualify as warranty work, and the the dealer has to foot the bill. Hence the incredible pickiness and avoidance of anything not blatently warranty work.

But also, non warranty work that you pay them to do is incredibly profitable. Though it makes you unhappy.

Therein lies a problem, unhappy customers result in poor scores when DCX follows up on your service experience. As a direct result of your displeasure that dealer will be paid less than other dealers. This begins feeding the circle of pain that will ensue, because the dealer will need to make more money, so they will push for more dishonest repairs which result in more unhappy surveys.

Therefore!

A dealer that makes you happy, makes them happy; but so many factors must be taken into consideration, making it difficult to reach that utopian status. But they are out there. Just hope you can find one.

I will say this much though, I'll drive 100 miles at the drop of a hat to go to a dealer that I can trust to do the work right and fix on the first visit.

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Pics!

Or the really ethical dealers may double bill you and DC for the same work...

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That would no doubt result in some form of tax fraud or charges for claiming innacurrate revenue.

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Pics!

Okay I was a service writer for a while and I know that on an invoice you don't see the cost for the work because it is about 20 bucks less that we would for CP (customer pay) work. Like said earlier DC can refuse a claim and the service dept has to pay or the manager can take it up with his district rep and possibley get them to overide DC.


Parakeet

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Oh MAN I got NATURE on my Jeep.
05 KJ Renny that took the bad economy bullet

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4wdparakeet,

I am always leary of the service advisor's as I perceive their job as to sell you on all kinds of work warranted or not being the service dept is the high profit center of the dealerships.

I had a tranny problem w/ a Ford and the writer without looking at it said it was the engine mounts so he has a tech replace a mount and I still have the issue.... crappy Ford tranny.

I have my regular oil lube filter done on my fleet KJ at a DC stealership and he replaces the brakes at 25,000 miles by going direct to the fleet co for approval even though I had no signs of brake loss nor wear.

Any advice on dealing with the techs? I'd rather talk to the guys working on the vehicle.

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You are correct that the dealership would not be a dealership without the service dept. Your opinion of the advisor is a little skewed based on my experiance as an advisor. The advisor does very little in the diag. process. His job is just to pass the infomation that the tech gives him and pass it on to the customer. And inbetween all that he gets the quote worked up, then getting the customer to buy the repair. If you have a good advisor that is as straight as an arrow and a screwy tech, the advisor gets the bad rap. If you have a great tech and a great advisor then you have very little to worry about. And about dealing directly with the tech, that doesn't happen to much. Most service managers don't like the techs talking to the customer because it's the advisors job to handle the customer. You can always ask the advisor to talk to the tech working on the jeep and see what he says but don't expect the tech to offer up too much info. A good advisor will pad quotes, completion times, etc to cover any unexpected happenings( extra time for broken bolts, adding a little money to the part in case things break, telling the customer it will be ready by 4 but having it done at 2 to give him plenty of time to fill out paperwork etc) and if nothing happens and the install goes smooth the service advisor looks golden when the final price is 100 bucks lower than the original quote or done 2 hours before they said it would be done. Bottom line don't hate the advisor as he's only as good as his techs. I would recommend that you ask around on here or around your area for a lift friendly dealership and go there. If they are lift friendly then you should have a really easy time with that dealer. If you don't feel comfy at a dealership don't go again and find somewhere else to take it. It makes a world of difference when you trust the place that works on your KJ. I know the dealership I worked for ( and still take my KJ too) has an awesome dealership and I have no worries when I take it in cause I know they will shot me straight and not put the screws to me. I would pay more per labor hour if I trusted the shop the piece of mind is worth it. I'm sorry for the long rant that is probally very poorly written but I have worked about 80 hours this week and it's 4am here. Good luck with the dealership.

Parakeet

_________________
Oh MAN I got NATURE on my Jeep.
05 KJ Renny that took the bad economy bullet

89 XJ that thinks tax time is Christmas

I will have another KJ I promise.