Anyone know the rates paid by manufacturers to their franchised dealers for warranty work. How does the system work ?
Tks
Warranties
Jun 18, 2004
2 Replies
It varies but typical it is slightly lower than the average rate charged to retail customers.
There is often a complex calculation based on 'retail recovery rate' although some have a set regional rate or other such system.
Parts are a big issue though as they are priced on a cost plus a certain percentage. The % can be very low, typically lower than 5%.
Thanks Alan, so would you say transferring warranty claims to an alternative approved dealer effectively gives them additional revenue.? I have in mind variations in the "quality" of service here.
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