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Had a bit of a weird one today, and wondering whether anyone with inside knowledge can explain:
Took 16 month old car back to dealer with a problem. Received a phone call shortly afterwards stating that it wasn’t covered by warranty and, when questioned, claiming that it was the manufacturer who were refusing to cover it.
Subsequently spoke to manufacturer. They said this was a load of rubbish, as they don’t make those decisions and it was the Service Manager at the dealership refusing to fix under warranty. However, they were happy to intercede on my behalf. After several phone calls to the dealership and elevating it to their management they “persuaded”the dealership to do it as a warranty repair.
So, question is, assuming the manufacturer is telling the truth (and they seemed to be), why would a service manager be so resistant to a warranty repair? Surely they get paid either way?
Without knowing the problem difficult to say but, it may genuinely not be warranty work but the manufacturer is happy for it to go on warranty for an easy life/good will.
Given no one likes being overruled, it's entirely possible the service manager has dug his heels in.
Or
[Speculation] there's no money in warranty work, it's not loss making but it's not profitable. Hewants the markup on the parts and labour.[/speculation]
If it's not the dealer you bought it from I'd say the second is doubly likely. (Edit, especially as it's possibly parts only warranty from the manufacturer)
The Auto Cruise control had stopped working. Needed a sensor realignment - no new parts involved. And it was the dealer I got it from.
Thing I can’t understand is the claim that it was the manufacturer not letting them fix it under warranty
Probably option 2 - less money in it
End of month looking to hit his retail target to obtain his bonus??
or
Its been ok since new but then went out of alignment, how did that happen? Without knowing how and where the sensor is fitted it’s difficult to say but poss it’s had an “external influence” on it.
Had a similar response form our local vw service department over the rear door stoppers on our golf. 21k under 3 years old, mainly used single occupancy. Somehow the door stoppers failing is not warranty. I call BS.
As far as I can tell, it’s mounted behind a plastic cover above the grille. The Service Managers argument was that it “could” have been due to an external influence. However, he also acknowledged that there was no evidence of any impact or damage anywhere else on the car. Claiming possible misuse, even whilst admitting there’s no evidence to suggest it, pretty much makes a mockery of the idea of a warranty offering any real protection.
However, even given all of the above, the thing I was really struggling to understand was why he was so against doing it under the warranty, even though the manufacturer was perfectly happy to accept it was a warranty issue
nixie - did you try contacting VW direct? Mines a “VW group” car. Found manufacturer customer services far more helpful. As far as I can tell, they’ve overruled the dealer and told them to stop messing me around and fix it
Wasn't Arnold clark per chance was it?
No, different dealer. Not in it for the “name and shame”. Just genuinely curious as to the dynamics behind the decisions
Warranty time credits are often less than the time required so the dealer loses money.
Warranty work is always authorised by the manufacturer. They are paying the invoice that the dealer generates, they obviously want to give authority to any work undertaken.
The dealer doesn’t normally get paid their normal rate, probably around 70% of their normal rate. A good service manager wants to find genuine warranty work, it’s good income
I’d suggest the boy/girl working in the call centre of the manufacturer is clueless.
Anyone else read the title thinking "servicing managers" in the way a tupp services a ewe? and a warranty for a defective manager?
Just me then?
Depends on the manufacturer as to how much they pay for warranty work. My wife sets the rates for her region's dealers every year, its based as a % of the charged rate for non warranty work based on an audit of job cards from the last year.
As for which warranty decisions go back to the manufacturer for approval, it will vary by manufacturer. Complex work will require approval before they can commence otherwise they risk not being refunded.
Some dealers don't want warranty work as if they are busy, non warranty work is more profitable, so they will just turn it down or say they can't fit you in for xx weeks. They're not supposed to, but they're running a business and want to make as much money as possible. NB being a car dealer is not a profitable business at all - margins are wafer thin; although everyone, outside the industry, seems to think it is a cash cow.
It’s likely the service manager never called the manufacturer because he predicted what their answer would be based on prior experience with similar “claims”. If you make that guess right 95% of the time you can save a lot of wasted effort from sitting on the phone to call centres getting turned down for jobs you never expected to be approved. What you will never know is if he had called them what they would have said, rather than if you call them. How things are worded can make a huge difference too: you call them and say “inexplicably stopped working and garage says it need position recalibrated” they may say warranty work; but if he says “the sensors been nudged out of position” they may say not a chance.
Footflaps - not sure how you conclude being a car dealer is not profitable (nobody would do it if it wasn’t) e.g. https://www.bbc.co.uk/news/uk-scotland-scotland-business-45618613
(nobody would do it if it wasn’t)
It's only just profitable in a good year if you hit all your targets and get all the manufacturer bonuses. Gross Margins are in the low single figures (as in 0-3%) for most dealerships, which is barely better than sticking your money in a savings account.
E.g. take Pendragon PLC (one of the largest dealership groups and listed on the stock exchange, so figures are public). Pre tax profits of £28m on a turn over of £2.4billion! That's just over 1% pre-tax, which is worse than your average savings account.