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Using after market oil filters will void the warrenty.. What?

Originally Posted by 6MT It's been my experience (25 years) that dealers are quite happy to get money from where ever they can. Loyalty, while on the surface "looks" important,

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Old 05-05-2011, 11:24 AM   #1 (permalink)
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It's been my experience (25 years) that dealers are quite happy to get money from where ever they can. Loyalty, while on the surface "looks" important, is not the be-all/end-all of business practices. Especially when dealers charge outrageous prices for their services. People stay away from them. So warranty work can, and is, the bread & butter of a lot of dealership service departments.
Warranty work is done at less of a cost vs a normal repair where warranty prices are not used, the Manufacturing company pays lower labor and the part is paid at warranty cost without the markup, sure it is part of doing business, but dealers do not rely on just warranty work, the point here is, If you dont service through a dealer and only bring warranty work, the dealer most likely wont stand behind you. period! I should know, I do work for a warranty claims center lol
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Old 05-05-2011, 11:27 AM   #2 (permalink)
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Warranty work is done at less of a cost vs a normal repair where warranty prices are not used, the Manufacturing company pays lower labor and the part is paid at warranty cost without the markup, sure it is part of doing business, but dealers do not rely on just warranty work, the point here is, If you dont service through a dealer and only bring warranty work, the dealer most likely wont stand behind you. period! I should know, I do work for a warranty claims center lol
That's not right! Warranty work is charged to the manufacturer at full cost (labour & parts). My local GM dealership absolutely loves warranty work. They make the most profit on it. Now the Manufacturer.... they are the big losers.
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Last edited by 6MT; 05-05-2011 at 11:43 AM.
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Old 05-05-2011, 11:42 AM   #3 (permalink)
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That's not right! Warranty work is charged to the manufacturer at full cost (labour & parts). My local GM dealewrship absolutely loves warranty work. They make the most profit on it. Now the Manufacturer.... they are the big losers.

Well, I think this is becoming a pointless argument, what my original point was is that dealers love to help loyal customers and they are not as inclined to help with unloyal customers and will make it a lot tougher for a unloyal customer vs a loyal customer. I choose to agree to disagree on labor rates and parts as I know on my side that the parts and labor are performed at a lower rate vs a out of warranty repair
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Old 05-05-2011, 03:59 PM   #4 (permalink)
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Warranty work is done at less of a cost vs a normal repair where warranty prices are not used, the Manufacturing company pays lower labor and the part is paid at warranty cost without the markup, sure it is part of doing business, but dealers do not rely on just warranty work, the point here is, If you dont service through a dealer and only bring warranty work, the dealer most likely wont stand behind you. period! I should know, I do work for a warranty claims center lol
So you work for a warranty claims center and the dealer tells you "It would normally be $10,000 but since it's warranty work, we can't screw the manufacture. Let's say an even $3,000 for the job, ok Jimmy"? What first hand knowledge do you have of the actual price delta charged since you only see one side of it?

Warranty work is the bread & butter of a dealer. Most folks find a cheaper mechanic when out of warranty or do it on their own. If what you say is in-fact true, the dealers wouldn't make a profit. I think it has more to do with car reliability ratings, hence why claims can sometimes be a battle to get justified.
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Old 05-05-2011, 09:19 PM   #5 (permalink)
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So you work for a warranty claims center and the dealer tells you "It would normally be $10,000 but since it's warranty work, we can't screw the manufacture. Let's say an even $3,000 for the job, ok Jimmy"? What first hand knowledge do you have of the actual price delta charged since you only see one side of it?

Warranty work is the bread & butter of a dealer. Most folks find a cheaper mechanic when out of warranty or do it on their own. If what you say is in-fact true, the dealers wouldn't make a profit. I think it has more to do with car reliability ratings, hence why claims can sometimes be a battle to get justified.
I think you are missing the point of my post, but I will entertain you, example : customer brings vehicle in, they are 36 miles out of warranty and need tie rods for the vehicle and dealer gives quote on repair, customer is unhappy calls said warranty center and wants help, after review we decide to help, I call dealer and get service manager to agree to help, dealer can choose to not assist as dealers are independently owned and operated, we talk service manager into warranty pricing which is significantly lower than retail cost, dealer is losing money on this repair, warranty work is paid by the manufacturer and does not allow dealer to make extra money on parts markup, shop supplies and at a lower labor rate, the dealer doesn't fool the manufacturer lol....

back to the point, and this is just the facts ..not my opinion or what I like, dealers are going to stand by loyal customers ...every day I talk to service managers that tell me this customer only comes here for warranty work and decline other services, or I never seen this person in my shop before, they don't want to help those kind of customers and I myself don't service at a dealer, but that's how it works, like it or not
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Old 05-06-2011, 11:34 AM   #6 (permalink)
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I think you are missing the point of my post, but I will entertain you, example : customer brings vehicle in, they are 36 miles out of warranty and need tie rods for the vehicle and dealer gives quote on repair, customer is unhappy calls said warranty center and wants help, after review we decide to help, I call dealer and get service manager to agree to help, dealer can choose to not assist as dealers are independently owned and operated, we talk service manager into warranty pricing which is significantly lower than retail cost, dealer is losing money on this repair, warranty work is paid by the manufacturer and does not allow dealer to make extra money on parts markup, shop supplies and at a lower labor rate, the dealer doesn't fool the manufacturer lol....

back to the point, and this is just the facts ..not my opinion or what I like, dealers are going to stand by loyal customers ...every day I talk to service managers that tell me this customer only comes here for warranty work and decline other services, or I never seen this person in my shop before, they don't want to help those kind of customers and I myself don't service at a dealer, but that's how it works, like it or not
So the dealerships who does warranty services loses money on every services? or just not profiting as much as non-warranty services?

Manufactures pays less to dealership and Customers pays more?
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