The problem with dealers and warranty repairs
Transengineer over at cumminsforum has a great rant about why dealer service departments are problematic: Transengineer Rant He is referring specifically to warrantied repairs paid for by RAM. I...
Forum Discussion
The only BS going on here are the ravings of the lunatic on another forum brought over to this one and those who comment on the system without a clue as to how it works! What has already been pointed out as BS by those who do know can easily be verified by anyone who has ever worked in a dealership service department dealing with warranty claims. Of course that would mean some people would have to suspend their beliefs that it is all a conspiracy.
Dealers do not get paid to replace items that the manufacturer knows are not a legitimate part of the repair. Period! Warranty claims that do not have a failure code when submitted are not paid until they do have a failure code. Period! Warranty claims that do not repair the vehicle and require a subsequent repair are subject to being charged back to the dealer as a comeback. Period! It is utterly STUPID to think the reason dealerships are profitable is because of warranty work. Period! Warranty work is one of the least profitable items a dealer does. A full 50% of dealers do not make a true profit in their service department. Period!
Of course dealers want to get paid all they can get to repair a car. Of course the manufacturer wants to pay as little as they can for warranty costs. In case you have not looked, that is the American economic system we live in and it works pretty well. Major manufacturers measure their profits in billions of dollars yearly. Dealers don't. Manufacturers spend huge sums of money on systems to limit their warranty costs (one of their largest expenses) every year. To imagine that some mom and pop store in rural Iowa has figured out how to beat the manufacturer and their massive assets at the warranty game is simply ludicrous.
Dealers do not get paid to replace items that the manufacturer knows are not a legitimate part of the repair. Period! Warranty claims that do not have a failure code when submitted are not paid until they do have a failure code. Period! Warranty claims that do not repair the vehicle and require a subsequent repair are subject to being charged back to the dealer as a comeback. Period! It is utterly STUPID to think the reason dealerships are profitable is because of warranty work. Period! Warranty work is one of the least profitable items a dealer does. A full 50% of dealers do not make a true profit in their service department. Period!
Of course dealers want to get paid all they can get to repair a car. Of course the manufacturer wants to pay as little as they can for warranty costs. In case you have not looked, that is the American economic system we live in and it works pretty well. Major manufacturers measure their profits in billions of dollars yearly. Dealers don't. Manufacturers spend huge sums of money on systems to limit their warranty costs (one of their largest expenses) every year. To imagine that some mom and pop store in rural Iowa has figured out how to beat the manufacturer and their massive assets at the warranty game is simply ludicrous.
