Why are some dealers so resistant to doing warranty work?

[topazsparrow]

I've never understood it. Doesn't the manufacturer pay them for the work? Some bad dealers will do anything they can to avoid warrantied work.

[boredom.is.me]

Money: The less work they do for you, the more money they keep.

[CrazyWookiee]

Because it costs them money....?

[Hanakuso]

Originally Posted by CrazyWookiee

Because it costs them money....?

They get reimbursed

[GTM_Challenge]

I've never had an issue with the Toyota dealer and warranty work on our FR-S

[Sgt.Beardface]

If you think this is just a problem with car dealers you are sadly mistaken. This goes for everything these days. Every company regardless of car, boat, plane, hair dryer, condom, etc is in it for the money. And if they can make more money they will every time. Regardless if the dealer is your best friend or worst enemy I guarantee he goes to work for that one simple reason....money. I see it on planes everyday.

-Chuck

[Celica00]

my dealer without question on 2 occasions has insisted on doing warranty work. even when I wasn't sure about doing it. must be a case by case basis.

[Chimpo]

It may take a while to get reimbursed (every company is about money NOW). Also, depending on the part / item and the situation tied to it, OEMs may be reviewing these when they return, and they could deny the money to the dealer if they disagree with it.

[bdanisi]

I also think with any first generation car it is extra work. I mean hell browse these forums for 10 minutes and you will know about the twins than most service techs :-(

[CaptainSlow]

I would also imagine they get reimbursed strictly for their costs...meaning the cost of the part and THEIR cost for labor. I doubt that Toyota is willing to pay the dealership's charged cost for labor, meaning the dealership is getting less for their time. In short, I don't think dealerships are profiting from warranty work.

For example, a dealership may pay their tech $15 an hour, but charge $80 an hour for work. I doubt that Toyota pays the dealership for the $80/hr fee. I'd assume they pay for just what the dealership is out in labor and parts cost.

100% speculation on my part...could be completely wrong. Just thinking from a business perspective.

[BlueSTaR]

Originally Posted by CaptainSlow

I would also imagine they get reimbursed strictly for their costs...meaning the cost of the part and THEIR cost for labor. I doubt that Toyota is willing to pay the dealership's charged cost for labor, meaning the dealership is getting less for their time. In short, I don't think dealerships are profiting from warranty work.

For example, a dealership may pay their tech $15 an hour, but charge $80 an hour for work. I doubt that Toyota pays the dealership for the $80/hr fee. I'd assume they pay for just what the dealership is out in labor and parts cost.

100% speculation on my part...could be completely wrong. Just thinking from a business perspective.

Would be my assumption. Won't be able to make AS MUCH as they are on the other cars. Plus it's just a hassle. I bet they mostly -break even- on warranty work, so they'd rather not.

[kosoku]

Warranty work is a catch 22 for most dealerships.

Yes they make money on it. But if Toyota sees they are doing too much warranty that dealer could be audited. Its a fine line to walk.

[AznBRZer]

Dealers are only reimbursed a fraction of what the full cost of service is. If a service department is charging $100 per hour, the manufacturer will pay them like $70-80 per hour. This is also how service techs can be paid for 60 hours of work while working less than that because internal documents dictate how many units of time each job can take and if the tech finishes faster, they still get that extra time. It's really interesting how the car business works in that way.

[BlaineWasHere]

A service department making tons of money is a service department doing tons of warranty work in under book time.

If you have a dealer resisting warranty work find a better dealer with a better service department.