Warrenty question

[cutbetterthanyou]

To any dealers or people that may know, i have always wondered. How does warranty work? Does the dealer eat the cost and makes there money from sales? Does the manufacturer pay the dealer. If a shop is say $60 a hr is that what they get paid, or does the manufacturer set a rate of say $40. I just always wondered how this works because it always seems like ever dealer trys to get out of whatever they can. You would think they were getting paid for it and would want the work.

[MOturkey]

I'm guessing, because I don't know, but I assume it is probably similar to automobile repairs where they pay a standard rate for specified repairs, no matter how long it actually takes.

[mowerbrad]

The dealer does not lose any money by doing warranty work. When you bring in your machine to the dealer for repair work, the dealer will fill out an "invoice" for that repair and then submit that to the manufacturer.

For example, I bring in my new JD stander for an oil leak. The dealer fixes the machine just as the would without warranty and fills an invoice for the work completed. The invoice includes the labor and parts used. So say the bill comes out to $125, instead of giving the invoice to the customer to pay, the dealer will send that invoice to the John Deere for reimbursement. So the dealer will get back that $125 from Deere.

Dealers are not the ones who offer warranties (unless they do an extended warranty through their dealership which would be separate from the manufacturer warranty) its the manufacturer who offers the warranty. Thus the manufacturer covers all costs associated with warranty, not the dealer.

[cutbetterthanyou]

Originally Posted by mowerbrad

The dealer does not lose any money by doing warranty work. When you bring in your machine to the dealer for repair work, the dealer will fill out an "invoice" for that repair and then submit that to the manufacturer.

For example, I bring in my new JD stander for an oil leak. The dealer fixes the machine just as the would without warranty and fills an invoice for the work completed. The invoice includes the labor and parts used. So say the bill comes out to $125, instead of giving the invoice to the customer to pay, the dealer will send that invoice to the John Deere for reimbursement. So the dealer will get back that $125 from Deere.

Dealers are not the ones who offer warranties (unless they do an extended warranty through their dealership which would be separate from the manufacturer warranty) its the manufacturer who offers the warranty. Thus the manufacturer covers all costs associated with warranty, not the dealer.

Common sense would tell me that this is how it would work. I just don't understand why they always try to weseal out of covering everything. I wonder if they aren't ripping people off and charging both partys. Not saying they are just a thought.

[mowerbrad]

Originally Posted by cutbetterthanyou

Common sense would tell me that this is how it would work. I just don't understand why they always try to weseal out of covering everything. I wonder if they aren't ripping people off and charging both partys. Not saying they are just a thought.

Not all dealers try to get out of covering something under warranty, I'm sure there are ones who try to tell you they can't cover it under warranty. I personally have never had a dealer try to not cover something when it is under warranty.

I know that the dealer doesn't get their money right away when submitting the warranty information. I'm sure the dealers who try to get out of covering something under warranty are just too lazy to submit the proper paperwork and then wait to get reimbursed for the service.

[mowerman90]

I had a Kohler Rep explain to me one time that they have a budget for warranty work. So at the beginning of the budget period it's easy to get stuff done under warranty. But come the end of the budget period it's like pulling teeth to get anything warranted. I don't know if it's like that for other manufacturers but it kinda makes sense to me.

[mowandblow1980]

I think too theres a cap on how much a dealer can claim for labor. Also like mowerbrad said the dealer has to fill out extra paperwork and wait to get their money.

[mowerbrad]

Originally Posted by mowandblow1980

I think too theres a cap on how much a dealer can claim for labor. Also like mowerbrad said the dealer has to fill out extra paperwork and wait to get their money.

I can't speak for any caps, but you are right, the dealer can't just claim any amount for warranty. For all I know, the manufacturer may only pay X amount for labor rates (ie, paying up to $75/hour for labor). If the dealership's typical rate for labor is $75/hour, that's all they can claim for warranty. The dealership can't submit paperwork that states they charged $120/hour for labor.

[retrodog]

The only thing a dealer might not like about warranty, is most manufacturers cap each job on labor. Take for instance a wire short... might take a dealer 2 hours to find it and fix, but most companies only pay like 15 minutes or 30 minutes of labor.... I have heard of dealers that try to get paid by the customer and the company...that sucks. I try to get everything warrantied, I even ask when the warranty is out, sometimes they still pay, it never hurts to ask.....
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[ed2hess]

Originally Posted by mowandblow1980

I think too theres a cap on how much a dealer can claim for labor. Also like mowerbrad said the dealer has to fill out extra paperwork and wait to get their money.

And sometimes out of the blue they get a call and have to root thru paperwork to answer questions. My dealer has one guy who makes a living doing just that......so who pays for that guy. Dealer says they would rather not deal with warranty. If you want to know who pays just ask them. They told me that Kohler pays and Kaw never pays. If Kaw is burnign oil tooo bad.