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Cost to dealership of repairs under manufacturer warranty

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Does anyone know whether repairs covered under the manufacturer's warranty, have any cost to the dealership that undertakes the repairs? Or do they get reimbursed in full?

 

If paperwork, inspections, warranty checks etc are done correctly then the manufacturer should reimburse fully. It's when dealers start doing repairs outside the original cover period where things change with who pays for what. 

This was certainly the case when I worked at a dealer 10 years ago.

Not to the £85 plus VAT an hour or even more they would charge you for the job, 

but paid enough that they stay as Official Repairers and Main Dealers.    They are not in business at a loss, if they are then their are reasons.

 

Many now having a right carry on getting Warranty Repairs approved, and then all the 'Dealership Contribution stuff that Skoda are coming away with when they say not a Warranty Claim but 'Goodwill'.

Edited by Offski

  • Author

Thanks. Long story short - a nearly new, approved used car I picked up on Friday is back in with an engine management light. It came on once on my way home after the pickup (!) so took it back then, only for them to just reset the light. Then it came on again the following day. Turns out it needs a new catalytic converter (10 months olds).

 

Being repaired under warranty, but I'm peeved for a number of reasons about the whole situation and wanted to check whether there would be any truth in it *if* they claimed it was costing them money to fix

I've always found Skoda dealers happy to undertake authorised warranty work (even if they did not supply the car) so I can't see them losing money on it. 

Adrian55555 will tell you all about the authorisation/warranty process.

 

Nowadays, warranty work is a risk to the dealer if Skoda UK reject it later, for instance if their opinion is the returned part wasn't faulty, or if it doesn't fix the fault, or it wasn't covered by the warranty (wear and tear, damage to component etc)

 

 

Skoda Approved used car, remainder or Manufacturers Warranty or 12 month Warranty.

 

as well as the Courtesy car they provide if they mess you about ask for your out of pockets expenses.

If they say no, ask that from Skoda the Warranty Provider.

Edited by Offski

I can't say for sure with Skoda but I can say this about Ford.  Any issue with a Ford and the standard line was always "sorry not covered under warranty". After much battle with Ford UK customer services (on several occasions) arguing that their own t&c say the part should be replaced under warranty, the usual 'goodwill gesture' game starts. What I discovered is Ford work differently to many other manufacturers in that (here in the UK at least) they only provide a 1yr manufacturer warranty + 2yr dealer warranty so if you have an issue after 12mths it's the dealer who pays.  No wonder Ford are famous for saying 'not covered by warranty'.

 

The industry norm (here in UK) for a new car is 2yr manufacturer warranty + 1 yr dealer, in other words it's the dealer network that pays for warranty work in yr3.

 

Skoda new car warranty doesn't give much away so not sure how they work,  but if you look at VW, note the the word 'manufacturer' is dropped for yr3. TBH from the owner point of view, it shouldn't matter who provides the warranty.

 

VW:

  •     A 2-year unlimited mileage manufacturers warranty.
  •     A further 1 year / 60,000 miles (whichever is soonest) warranty.

Edited by Guest

If  the third year on the standard warranty is "dealer" what's the crack with 4/5 year extended warranties bought when ordering the car?

My 230 had major work carried out under Warranty and I was told by the Service Manager that the labour charges for warranty work carried out and paid for by Skoda was a fraction of the price charged to customers having ordinary work carried out.

 

That why dealers try to refuse claims by just saying " Its not covered by the Warranty " when in fact it is.   

Years ago warranty work used to be very rewarding for dealers. Over the years, manufacturers margins have been squeezed and some dealers probably were taking the Mickey and others were just plain incompetent, so the inevitable happened. Monitoring and scrutiny of claims led to the system we have today. 

 

We can blame VAG, but I suspect a hard core of poor dealers are really to blame.

Now we have the financial black hole caused by dieselgate, WLTP et al so things are only going to get worse.

 

1 hour ago, juan27 said:

If  the third year on the standard warranty is "dealer" what's the crack with 4/5 year extended warranties bought when ordering the car?

Extended warranties work exactly the same way as insurance policies.

1 hour ago, xman said:

Years ago warranty work used to be very rewarding for dealers.

 

We can blame VAG, but I suspect a hard core of poor dealers are really to blame.

 

Totally agree with that. What's the phrase...  kill the goose that laid the golden egg ?

 

It's a pity the insurance industry hasn't gone the same way - unfortunately it often costs the insurer more to investigate that the money they've been screwed out of. And don't the garages and ambulance chasers know it. 

2 hours ago, Scot5 said:

Extended warranties work exactly the same way as insurance policies.

Agreed for warranties bought after the car was registered, which are often not worth the paper they are written on, but warranties included in the original order are an extension of the original manufacturer's warranty and work the same as the standard 3 year warranty.

54 minutes ago, Rodge said:

Agreed for warranties bought after the car was registered, which are often not worth the paper they are written on, but warranties included in the original order are an extension of the original manufacturer's warranty and work the same as the standard 3 year warranty.

 

Just to add if anyone doesn't know,  If you extend your warranty to 5 years from the normal 3 you don't get the Breakdown cover for the extra 2 years.    :shake:

But you get the T&c's,  so you get the vehicle with the Warranty to an 'Approved Repairer' get the fault diagnosed, this can cost if not a Warranty Item, 

but if it is, then you get the Approval or the Warranty repair from the Warranty provider, if the Approved Repairer wants the job, does the job than that is between them and who is paying.

The vehicle owner has the T&c's, should be kept aware of parts used etc and if the repairer gets shafted that is not the car owners worry.  'Simply Clever', 

Read the T&C's, know what is what and let the Approved Repairer run their business as they want to.

1 hour ago, Rodge said:

Agreed for warranties bought after the car was registered, which are often not worth the paper they are written on, but warranties included in the original order are an extension of the original manufacturer's warranty and work the same as the standard 3 year warranty.

 

As above - acts just like an insurance policy. OP asked who pays for warranty, well in years 4 & 5 it's the insurer who pays. If that happens to be Skoda themselves then Skoda pay. If however if the extention is underwritten by a 3rd party (i.e. Skoda contract out the policy) then it's the underwriter who pays.

 

As others say, it's important to read the smallprint. I know several folk who've chosen Kia because of the 7year warranty but don't realise certain things are dropped from warranty the older the car gets - they think yr7 is exactly the same as yr1.  Again I don't know for sure, but I'd be very surprised if  Skoda's yr5 affords the exact same cover as yr1.

23 hours ago, Scot5 said:

 

As above - acts just like an insurance policy. OP asked who pays for warranty, well in years 4 & 5 it's the insurer who pays. If that happens to be Skoda themselves then Skoda pay. If however if the extention is underwritten by a 3rd party (i.e. Skoda contract out the policy) then it's the underwriter who pays.

 

As others say, it's important to read the smallprint. I know several folk who've chosen Kia because of the 7year warranty but don't realise certain things are dropped from warranty the older the car gets - they think yr7 is exactly the same as yr1.  Again I don't know for sure, but I'd be very surprised if  Skoda's yr5 affords the exact same cover as yr1.

 

The Skoda extended 5 year warranty ordered with a new car has the same T&Cs as the 3 year warranty as far as I can see?  

 

"Unlike other warranties, our new car warranty can be extended to cover you exactly as a genuine ŠKODA factory warranty would for the full period of time that you have it."

Source:

http://www.skoda.co.uk/owners/warranty

 

I bought a 5 year warranty at the point of ordering new and (despite looking) I have never seen any changes in T&Cs applicable in year 4 & 5.   Indeed I have never seen any T&Cs specific to the extended warranty.  

 

If anyone has a link/document saying differently I'd obviously be interested in seeing it.

 

Answering my own earlier question the only differences I can detect between the 1st/2nd year of the standard warranty and the 3rd is that if you have to get a repair done outside the UK in the 3rd year you have to pay the dealer and claim back from Skoda in the UK, and the 3rd year is limited to 60K miles (totally irrelevant to me and most other private buyers)

 

Edited by juan27

2 hours ago, juan27 said:

 

The Skoda extended 5 year warranty ordered with a new car has the same T&Cs as the 3 year warranty as far as I can see?  

 

"Unlike other warranties, our new car warranty can be extended to cover you exactly as a genuine ŠKODA factory warranty would for the full period of time that you have it."

Source:

http://www.skoda.co.uk/owners/warranty

 

I bought a 5 year warranty at the point of ordering new and (despite looking) I have never seen any changes in T&Cs applicable in year 4 & 5.   Indeed I have never seen any T&Cs specific to the extended warranty.  

 

If anyone has a link/document saying differently I'd obviously be interested in seeing it.

 

Answering my own earlier question the only differences I can detect between the 1st/2nd year of the standard warranty and the 3rd is that if you have to get a repair done outside the UK in the 3rd year you have to pay the dealer and claim back from Skoda in the UK, and the 3rd year is limited to 60K miles (totally irrelevant to me and most other private buyers)

 

 

Yes correct. Year 5 is the same as year 3. Exactly the same process for the dealer to.

 

I'm currently having £5k worth of work carried out in year 4

 

Lee

Edited by logiclee

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