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> Who's Paying The Dealer For Warranty Work?
mamamia
post Aug 17 2008, 07:02 PM
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This was discussed here in the past, but we were never able to come to a conclusion, at least that's as much as I remember....

We all know that dealers would be happier to do no-warranty work, get paid by the customer. That's a given....

My impression from taking my car to my dealer (the whining engine), was that he's reluctant to spend time and money on trying to fix (or even recognize) a problem which is clearly covered by the original warranty. I took the car to another nearby dealer, who told me they must show Hyundai that the part they replaced was really malfunctioning, not only noisy, to be reimbursed.... Another dealer, recommended by the regional Hyundai guy, solved it fast and efficiently (it was a noisy power steering pump)....

Same applies to inspections/tests/work done under Hyundai's EXTENDED warranty (or however one may call it).... How well is the dealer being compensated by Hyundai...

...I'm also suspecting a lot of it is depends on the RELATIONSHIP between a certain dealership and Hyundai's regional office....
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MiamiLX
post Aug 17 2008, 07:49 PM
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I think I know part of that answer Mama. Most shops only get a certain percentage

of their Labor Rate (I heard 75%), plus no profit on any parts, as you would expect.

But here's the kicker, they only get paid ONCE to fix the Job. That means if you

return 5 times for the same problem, they only get paid the first time around.

And there is no doubt that some shops have no clue what they're doing. I had

Hyundai people working on my Sonata who had never touched one before. It

gives you that warm fuzzy feeling :w00t: :whistling:
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craigbrooks
post Aug 17 2008, 07:58 PM
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Mr. Bean your thoughts and comments please.

Let's get it from the horses mouth....eh? :amen: (I live way too close to the border) :w00t: :laughing:

This post has been edited by craigbrooks: Aug 17 2008, 07:59 PM
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kn5owa
post Aug 17 2008, 08:36 PM
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QUOTE(MiamiLX @ Aug 17 2008, 07:49 PM)


And there is no doubt that some shops have no clue what they're doing.  I had

Hyundai people working on my Sonata who had never touched one before. It

gives you that warm fuzzy feeling :w00t:  :whistling:
[right][snapback]183656[/snapback][/right]

You hit the head right on the nail.

I don't know how they are paid, but I do know that - in least in the Northern VA area, they are incompetent and likely not even to speak English. Kind of makes the much vaunted Hyundai warranty not so good after all.

In fairness, this seems to apply to about any other type of service work in the area.
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cmerica
post Aug 17 2008, 09:45 PM
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MiamiLX, I know what you are saying. Refer to my post service nightmare.

This post has been edited by cmerica: Aug 17 2008, 09:46 PM
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MiamiLX
post Aug 17 2008, 10:20 PM
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QUOTE(cmerica @ Aug 17 2008, 06:45 PM)
MiamiLX, I know what you are saying.  Refer to my post service nightmare.
[right][snapback]183688[/snapback][/right]


On my other computer I have a Repair Order that was written in Spanish.

Some might say this can only happen in a 3rd World City like Miami. :trophy:

With that said, I have an exceptional new Dealer in Arizona who got a chance

to repair the Window Regulator which fell off moving from Coast to Coast. The

good part, I was pretty sure I didn't need a new part. The new Dealer loved

the Spanish R.O. and I made a new set of friends. I love my Dealer!
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apuforyou
post Aug 18 2008, 08:09 AM
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Awhile back my closest dealer wanted to charge me 270 bucks for a torn intake hose.... I told them I'd hold off even though I needed it and went to another dealship 45 minutes down the road and got it replaced for free :bwekk:

When my car was closer to stock I got horrible serivce from my dealership, very unfriendly.... Now that It's somewhat fixed up all the sales people love me because they think the car looks great and customers stare at my car everytime I go to the dealership. A few even said they wanted to stick it in the show room for a day ha!
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LilBean
post Aug 18 2008, 08:36 AM
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QUOTE(craigbrooks @ Aug 17 2008, 07:58 PM)
Mr. Bean your thoughts and comments please.

Let's get it from the horses mouth....eh?  :amen:  (I live way too close to the border)  :w00t:    :laughing:
[right][snapback]183662[/snapback][/right]


It is correct that the dealership doesn't get paid the same amount as they do if the work was customer pay. Hyundai warranty pays absolutely rediculously low labor times to do a lot of the work, and if they find out it it possible to do it in even less time, then they further lower the labor times. As far as parts are concerned, the dealer gets paid very close to the retail price for parts. And yes, the dealer only gets paid once for warranty repairs, so if you come in four more times for the same complaint, the service dept. loses money. All returned warranty parts (the old parts off the vehicle) must be retained until the warranty claim is paid. Hyundai randomly requests those parts back for inspection purposes, and if they are not returned in a within a certain timeframe, then the entire warranty claim is charged back to the service dept.

I'm not sure how it is at other dealerships, but here the only people who really have a problem doing warranty work is the technicians (not with their skill in doing the work, but with their attitude because they are making next to nothing to do the work). However, this does not affect the quality of their work because they know if they don't do it right the first time that next time they will have to do it again and not get paid for it.

However, work is work, no matter whether it is customer pay or warranty. I don't know why a service dept would be "reluctant" to do any type of warranty work. It may not pay as much, but it's still a paying repair. Also, whether or not something is covered under warranty can be left up to the particular service manager, such as your experience with the torn intake hose. As long as it's not a major repair that could be called into question by Hyundai for warranty parts to be returned, then it's usually not a big deal and can be covered under warranty. However, if it is outright customer abuse or very obviously a wear item then they won't take the chance of being charged back for the repair.
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mamamia
post Aug 18 2008, 02:57 PM
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The common problem with so many dealerships, is when a car owner is complaining about an issue, mostly a noise, but can't pinpoint the faulty part. That guessing part (for lack of professional detective work) is what the dealers fear and hate..... The pros would find out the problem fast and fix it, like done with my faulty, whining power steering pump. But for that dealers need to have professionals working in their shops....
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Brazzel
post Aug 18 2008, 03:17 PM
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QUOTE(mamamia @ Aug 17 2008, 07:02 PM)
This was discussed here in the past, but we were never able to come to a conclusion, at least that's as much as I remember....

We all know that dealers would be happier to do no-warranty work, get paid by the customer. That's a given....

My impression from taking my car to my dealer (the whining engine), was that he's reluctant to spend time and money on trying to fix (or even recognize) a problem which is clearly covered by the original warranty. I took the car to another nearby dealer, who told me they must show Hyundai that the part they replaced was really malfunctioning, not only noisy, to be reimbursed.... Another dealer, recommended by the regional Hyundai guy, solved it fast and efficiently (it was a noisy power steering pump)....

Same applies to inspections/tests/work done under Hyundai's EXTENDED warranty (or however one may call it).... How well is the dealer being compensated by Hyundai...

...I'm also suspecting a lot of it is depends on the RELATIONSHIP between a certain dealership and Hyundai's regional office....
[right][snapback]183643[/snapback][/right]

I've just about had my whole Azera replaced and have not spent a dime :grin: and have had no hassle what so ever..... loaner car the works. H*ll, they even came and got it once.
Two dealerships. Most all the calls were made by the Hyundai tech. line and the dealership gets paid by Hyundai of course..... They seem happy to do the work to me.

This post has been edited by Brazzel: Aug 18 2008, 03:26 PM
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