Thread: dealers and warranty

Originally Posted by BigJon

HAHAHAHAHAHA

Who told you that rubbish.

Warranty work is not good money.

The labour rate is way below retail and often the times given to do jobs are not even close to how long it really takes. Then there is the time (money) involved in putting the claims in, then waiting for payment.

Fully agree with you on this, BJ. Warranty is paid by manufacturers at a "wholesale" or agreed rate which, in my considerable experience in the industry, was always well below the rate charged to retail customers and standard times are used not actual times. Add to this the fact that most manufacturers reimburse parts at cost, so no profit in that in warranty work, and then they take months to pay. The dealer has little chance of going back to the client for payment if the manufacturer refuses the claim months after the job has been done.

This is one of the reasons why new prices are padded with "pre-delivery" charges as the new sales have to subsidise the service department.

I have never before heard of any dealer charging a warranty inspection fee. Is this a Hyundai thing, or the policy of the particular dealer? Whichever, it might be a good one for a TV current affairs expose.

The Motor Traders Association used to recommend that the hourly charge-out rate be 250% of hourly wage. This covers overheads etc. Probably should be more now in these days of longer annual leave and long service leave, superannuation, etc. I know that first class Fitter-Machinists are commanding about $30 an hour plus leaves, super, etc. nowadays. This does work out pretty close to a 300% hourly charge-out rate of $95 which most around here are charging.

Must be a dealer thing unless its changed in the past few years. When i had a gearbox problem with my Hyundai a few years back they fixed it no-charge, even gave me a courtesy car for the day.

Originally Posted by Reads90

I have a mate who works in the motor trade in the Uk and he has always said that Land Rover is one of the most sort after dealerships due to amount of warrenty work you get from them.

Do you want to read that back to yourself?

Your mate is saying that he thinks that because Land-Rovers are poorly built and need lots of rework in the dealership they are a sought after franchise?

Originally Posted by 3toes

Do you want to read that back to yourself?

Your mate is saying that he thinks that because Land-Rovers are poorly built and need lots of rework in the dealership they are a sought after franchise?

That is exactly what he was saying. He worked for a Pug dealership which was part of a group that owned a couple of Land Rover Dealership plus many other companies dealerships. The Land Rover dealerships did alot more warranty work than any other garage in their group , and therefore they were always keep busy .

i sent an email to the dealer and had a phone from the owner. After speaking with him at length about my concerns. we have sorted the issue and he has highlighted to me the problems when people bring cars and there is nothing wrong with them. he has given me his personal mob number and had requested that i only deal with him the furture.

great result i am happy.
keith