Warranty %

[camaroman]

We have a question about the percentage of profit on warranty claims shown on the GM Financial Statement. This is found on page 6, line 45 of the financial statement. I can not find a reason why the percenatge would fluctuate in any way, since we get cost plus 40%, that should work out to about 29%. Ours varies from month to month a percent or so, nothing major, but would like to figure out why it changes. Thanks for your feedback.

[Zep33]

All the prepaid maintenance that they only pay a flat fee on

[btk]

who inputs your warranty claims? if you have a warranty admin. i would check with that person. It sounds like there are some write offs going on, but you have to look at the claim statement from the manufacturer and see what kind of adjustments are being made.

[WhoParted]

Ours is usually 28% with a 40% markup and all this free maintenance.

[Zep33]

The other thing is engines and transmissions can't be marked up above list price for those dealers at the 40% rate, atleast that's the way it was when we were on 40%. So if you have a bunch of those in a month, it'll change your profit %

Once you guys petition GM to bump up your warranty %, everything pays at the new rate, even the powertrain stuff. (Except that free maintenance, although Cadillac does pay the full mark up)

[Gerry Laughlin]

Zep,
We have always marked engines and transmissions up 40% and have been thru numerous reviews without any mention of improper pricing. Just curious if you saw that in print somewhere?
Thanks,
Gerry

[TimK]

Zep,
We have always marked engines and transmissions up 40%

same here

although we now mark them up with extreme prejudice thanks to the new warranty at retail price law.

[Zep33]

Up until we got to 86%, my warranty clerk always had me stop at MSRP on those. We were a SAAB dealer before GM and that was definitely in writing from SAAB but I've never seen it or looked for it in writing from GM. Maybe our clerk was assuming it was the same.

But come to think about it, GM doesn't pay claims by what we put in there, they work it themselves and pay what they're supposed to so if they were paying over MSRP for all those tranny's and engines we'd done, then the dealership got paid but I didn't

We did a transmission that started at customer pay last week at MSRP of $2600. It changed to warranty and now it's $4100

[Zep33]

Just looked it up in the warranty handbook:

Parts Pricing
The system calculated dollar amount of the parts charges, using GM Parts costs effective on the Repair Completion Date


so it's based off the cost of the part, not the sale price. It does sound like we were paid the full 40% back then if you guys are getting paid for all those. I wonder if I should bother opening that can of where all that money was put....

I'm sure my counterguys just let things fly at the price that came up but I know for a fact that sometimes my warranty clerk would have me adjust the ROs back down to MSRP. And if I was the one billing it out, I do it at the time I billed it to save her a trip in here