Last night out of shear boredom I started looking up the state of Ohio law regarding retail reimbursement for parts used in warranty repairs, which is pretty cut and dried about the fact that we are not getting what the law says we should. Has there been any recent movement regarding this issue in states other than Illinois.
Thanks,
Gerry
Retail reimbursement on Warranty Parts
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scotstrong
Retail reimbursement on Warranty Parts
This is one of those "Be careful what you ask for because you just might get it" scenarios. There has been discussion by the dealer associations in Ohio on this topic, and two potential problems immediately surface:
1)If you insist on retail labor and parts for warranty reimbursement, you give the manufacturer the right to analyze your repair orders and determine what your "effective customer pay labor rate" is. Due to maintenance repairs and high-competition, price-sensitive repairs, your effective labor rate for customer pay may actually be lower than your posted retail door rate and they can use this as ammunition to LOWER (not raise) your warranty labor rate. 2)As has been demonstrated in other states, the manufacturer is more than likely to raise the vehicle invoice price as an offset for the additional warranty expense; or create some other type of "fee" or "handling charge".
Dealers in Ohio seem to be lying low for the time being on this issue until they see what the final outcome is in other states that are currently fighting this battle.
1)If you insist on retail labor and parts for warranty reimbursement, you give the manufacturer the right to analyze your repair orders and determine what your "effective customer pay labor rate" is. Due to maintenance repairs and high-competition, price-sensitive repairs, your effective labor rate for customer pay may actually be lower than your posted retail door rate and they can use this as ammunition to LOWER (not raise) your warranty labor rate. 2)As has been demonstrated in other states, the manufacturer is more than likely to raise the vehicle invoice price as an offset for the additional warranty expense; or create some other type of "fee" or "handling charge".
Dealers in Ohio seem to be lying low for the time being on this issue until they see what the final outcome is in other states that are currently fighting this battle.
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Gerry Laughlin
Retail reimbursement on Warranty Parts
Scot,
I am the last person that really wants to open that can of worms. But I had read an article awhile ago about how GM was hoping to make the whole problem go away by way of a program called their "Global Solution(?)". It was going to offer a 45% markup, with no Newcar fees. Never heard any more after that article though.
Thanks,
Gerry
I am the last person that really wants to open that can of worms. But I had read an article awhile ago about how GM was hoping to make the whole problem go away by way of a program called their "Global Solution(?)". It was going to offer a 45% markup, with no Newcar fees. Never heard any more after that article though.
Thanks,
Gerry
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GLB
Retail reimbursement on Warranty Parts
One thing is for sure, their is no "free lunch". The manufacture is not going to
subsidize the cost of retail prices on warranty parts. They will simply increase
your cost of doing business with them somewhere else. In fact they will probably
take the opportunity to get some more of your money in the process.
subsidize the cost of retail prices on warranty parts. They will simply increase
your cost of doing business with them somewhere else. In fact they will probably
take the opportunity to get some more of your money in the process.