GM 2 YEAR OIL CHANGES

[MR2048]

Good morning all,

With the cost of oil and filter and labor exceeding the $35.00 paid to us how is everyone keeping their effective warranty rate on the plus side?
Right now I am selling my parts and labor at near cost as to not to have to write off any difference on the schedule.

Mark

[FixedManager]

Luckily many other things on the vehicles are failing but it is frustrating. Keep your General Manager aware so they can bring it up at dealer meetings.

[Chevguy67]

For the $35 warranty reimbursement. I take $10 labor. Parts gets $25. If parts doesn't use all $25 (mostly when it is a 4 qt LOF) the remainder goes to labor. What ends up happening for the parts dept is they usually have to sell near cost.

[drapp]

We run the LOF / Rotate / MPVI through at a preset discount rate for labor, still make money. Parts are what they are at cost + 40%. We take whatever GM pays us $30 - $35 - $50, etc. and the balance gets billed to either NEW or USED sales department - depending on what the program is (CPO = used, etc.)

We discussed this when the program was announced. Sales generated the program so sales pays the difference.