who pays for the warranty work?

rdomain · 09-06-2005, 08:46 AM

Hi,

I was wondering who has to pay for the warranty work done on a new car. Is it the dealer or does the dealer bill Ford?

Cheers.

OzJavelin · 09-06-2005, 08:54 AM

Yep, I've always wondered the same? My VY SV8 had a "new" engine fitted at 80,000km. I complained about wrist-pin noise since about 20,000km and *finally* a different dealer took notice. Sounds to me like most dealers think it's just too much trouble to actually assist with warranty issues?

jonbays · 09-06-2005, 08:55 AM

Dealer does the work at his cost and then the dealer has a warranty manager to fill out all the claims paperwork in triplicate and then ford pay what they think is fair.

Ford wins all the time and occasionally the dealer is left holding the bag over faulty procedure and paperwork. Plus the dealer has the admin burden of proof.

The warranty from ford is designed to protect Ford from mischevious dealers and customers claiming evrything they can. Unfortunately it means it can errr on Fords side a bit to often unless the customer contacts ford and makes a fuss.

rdomain · 09-06-2005, 09:00 AM

Cheers for the info jonbays.

SileNceR · 09-06-2005, 08:57 PM

the dealers would probably prefer if the customer contacted ford and made a fuss is that correct?

because then ford would have instructed a dealer to do the work so they wouldn't have as much hassle getting paid for the repair....

XA-Coupe · 09-06-2005, 09:23 PM

Quote:

Originally Posted by SileNceR

the dealers would probably prefer if the customer contacted ford and made a fuss is that correct?

because then ford would have instructed a dealer to do the work so they wouldn't have as much hassle getting paid for the repair....

That removes any problems for the dealers in the event of an issue that requires some thought.

GTP 320 · 09-06-2005, 10:06 PM

I always thought that it cost nothing to the dealers because they get paid by the Ford motor company for any warranty work they do on the vehicles.
Cheers John

sbutler · 09-06-2005, 10:23 PM

Ford pay the dealer X amount for X issue
EG: To remove & replace a motor in an XR8/GT lets say 5 hours at X per hour.
If the dealer takes longer than the allotted time its his bad luck. There are other ways the dealer can make that loss back, Ford say 3 hours to fit new clutch, but they get it done in 2 hours, they still get paid for 3 hours. Although it mostly goes Fords way the dealers have a few tricks up there sleeves.
That why dealers are happy to do some warrentee work & fob you off for other warrentee stuff. They only want to do the stuff that goes there way...simple...

rodderz · 10-06-2005, 12:32 AM

Quote:

Originally Posted by sbutler

Ford pay the dealer X amount for X issue
EG: To remove & replace a motor in an XR8/GT lets say 5 hours at X per hour.
If the dealer takes longer than the allotted time its his bad luck. There are other ways the dealer can make that loss back, Ford say 3 hours to fit new clutch, but they get it done in 2 hours, they still get paid for 3 hours. Although it mostly goes Fords way the dealers have a few tricks up there sleeves.
That why dealers are happy to do some warrentee work & fob you off for other warrentee stuff. They only want to do the stuff that goes there way...simple...

This was a reason I'de heard why some Holden dealers were hesitant on LS1 rebuilds..... Holden were (i think from memory) allowing 16hrs for a dealer to remove, strip, fix, rebuild, and fit and engine, when most were taking closer to 20hrs labour and were losing on those jobs

That could of been fixed though as time went on

MNM96 · 10-06-2005, 08:49 AM

Quote:

Originally Posted by jonbays

Dealer does the work at his cost and then the dealer has a warranty manager to fill out all the claims paperwork in triplicate and then ford pay what they think is fair.

Ford wins all the time and occasionally the dealer is left holding the bag over faulty procedure and paperwork. Plus the dealer has the admin burden of proof.

The warranty from ford is designed to protect Ford from mischevious dealers and customers claiming evrything they can. Unfortunately it means it can errr on Fords side a bit to often unless the customer contacts ford and makes a fuss.

Hey johnbays ans All,
The Dealer Warranty Advisor logs warranty claims direct to the manufacturer online. I did the warranty job at a truck dealership with 6 franchises(Western Star, International, Hino, Case, John Deere and Shiburu) about ten years ago, and the only one that was posted was Hino. The manufacturer set strick labour times for jobs, but do allow extra times if jobs take longer than expected. They also have a Warranty Manager who Dealers can liase with for assistance.
Parts are supplied free, but dealers can claim frieght. Once the claim is completed, you log it onto the system, and it should be paid within 6 weeks. The dealership recieves a print out with paid claims and it also shows if there are any problems with others, which need to be followed up. Claims are paid with a Percentage Loading. Warranty, if done right, can be a nice little earner!

Where it becomes a drama however, is that the Manufacturers do not pay for Diagnosis. this is why they blow you off all the time. This is also why the Loading is applied. If not allocated to Diagnosis, it can be taken as profit. We used to have an account where all excess warranty money was paid, and it was used to mop up this sort of short fall, and still used to come out in front. Maybe this is why some dealers seem to GAF when other seem as though they CGAF.
I hope this helps. If Anyone has any specific Q's ask and I will answer if I can.

:
Cheers,
Mike

OzJavelin · 10-06-2005, 09:24 AM

I'm sure a lot of enthusiasts would be happy to pay a bit for diagnosis .. or have that payment reimbursed if something is found .. to stop people hogging dealer time with non-existant or trivial matters??

Problem is half the time I can't GIVE my money away to dealers. Again with Holden (my favourite people at the moment), my "new" (it's actually a rebuild from another car, but I won't go into that here??!!) engine will hit 1500km soon and I'd *like* to get the run-in oil/filter changed. No they say. It stays until 10,000km. I asked if there was anything special in it (other than iron filings) and they say no. So I said I'd pay for it .. and basically they are still umming and ahhing about it? What the??

10-06-2005, 06:21 PM

Hi guys, the question was who pays for the repairs on you new vehicle. well im and apprentice tech at my local Ford dealership and I can tell you that all warrany jobs/repairs get billed to Ford motor company and all repairs have to be carried out as per the manual, next time you take your car in and the service advisor shows you the repair order for your vehicle If you turn it over you should see and hand written explanation separated into three sections, Fault Cause and Rectification, If the technician doesnt write his story properly or the repair wasn't completed as per what is specified by ford then Ford motor company will deny the warranty claim made by the dealer and only then does that paritcular repair be paid for by your local dealer. Hope this answers your question.