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Thread: Warranty Claim costs.

  1. #1
    Regular Member leeds vectra's Avatar
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    Default Warranty Claim costs.

    Had a little peek at the paperwork for my warranty claim for the rear door central locking fault (which is the motor at fault) and the boot struts that are both leaking. The cost of the locking fault was £183 to replace and the boot struts £68. The dealers will love it as Vauxhall are paying. Not bad in year 3 and Network Q expired.

    Restored a bit of faith!!

    Paul.

  2. #2
    North West & North Wales Assistant Regional Organiser Drinky's Avatar
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    Vauxhall are going to love me then have got to book the car in tommorow to have the tailgate struts,both front dampers,rad mounts done !!!!!!

    Back in a V6 !!!!!!!!!!!! And lovin it !!!

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    Regular Member armoured farmer's Avatar
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    Good ,stuff em, they get enough on the vehicles at the start...

    Drinky mate had your lower splitter sprayed yet?? Want to c some pics..

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    Ex Vec-C Admin & Founder Bainie's Avatar
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    Hmmm, boot struts, mine are sheaged, never realised they were covered, try my luck, 7 days warranty left, MOT tomorrow

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    Regular Member 24vElite's Avatar
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    Had the gearbox and radiator replaced under warranty on mine - £2500 - for parts alone, labour not shown on the invoice - thank you VX

  6. #6
    Regular Member Ste's Avatar
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    The cost is only relevant if you are paying. If the warranty is valid, why worry about the cost? Warranty is warranty, irrespective of the cost.

  7. #7
    Regular Member leeds vectra's Avatar
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    I don't think any of us are worried about the cost especially as warranty is covering it. I was merely commenting the value of having things paid for in year three. It's restored my faith in Vauxhall a bit which does make it relevant.

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    Regular Member Basil's Avatar
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    Going on the cost's thing, my car is and has been in the dealers for the past three weeks while they try and find the scraping/ grinding noise that I have had for a while now, and some of you may remember me posting about it some time ago.

    Well I went in to the dealers yesterday to get an update, and having been there a few times, I have gotten friendly with the service chappy that has been handling it.

    So far in man hours alone (just investigating the fault) has cost £2895, and so far they have fitted 2x lower arms, 2x front wheel bearings and all the anti-roll bar mounts and they still do not know for sure if this work will cure the noise until they road test it later today.

    When I was in yesterday, the chap was explaining who gets paid for what, and he was telling me that vx will only pay for the parts which have been fitted and for the time it took to fit them, they will not pay for any of the investigative hours so the dealer simply has to write them off, also according to this chap a franchised dealer (i.e Reg Vardy) only make around £300 on the sale of a new car, the main money they make comes from finance agreements and work on cars out of warranty (£190 for a back box on a T reg astra a gent was quoted whilst I was there, ouch!).

    He also commented that nearly every dealer in the franchised system, be it Reg Vardy or New Crown, generally makes a loss which is why vx farmed them out in the first place.

    Don't know how much was true but he had all the figures to back up his explanation.

    Certainly opened my eyes anyway.

  9. #9
    Regular Member OilBurner's Avatar
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    The other thing about warranty claims is that it doesn't actually cost Vx that much for the parts, the claim cost is not always as it looks:

    Take, for example a random part "thingymabob".

    If you or I goes to the parts counter or gets it fitted by service dept and asks for 1x thingymabob it will cost £100 + VAT (+labour for service).

    The dealer will have paid around £60 for that part, Vx will have paid around £20 to their OEM suppliers or made it internally (unusual these days) for a similar cost.

    The thing is, the invoice you, as a customer see is based on the prices you would pay for the parts - they don't want you to see the internal costs. The invoice is then charged to Vx. However, the amounts used to claim against Vx will be based on the price the dealer paid for the part (£60) and does include labour costs.
    The manufacturer will NOT pay for labour costs *unless* a warranty claim has been authorised. Hence the idea the investigations aren't paid for by the manufacturer. Generally, the customer will pay for investigations, unless or until the warranty claim gets approved. Thus, the dealer makes sure they don't lose out.

    So, Vx don't lose as much as you might think and the dealer certainly doesn't lose either way.
    Vx basically lose the £20 they paid the supplier for a thingymabob (not sure if supplier get billed if it's a manufacturing fault) and have the £40 part profit wiped out - but that isn't a loss as such - it balances out.
    In any case, I'm quite sure that both dealer and manufacturer manage to make a profit, until U.S. healthcare and pension costs get factored in, at least...

    I used to write Dealer Management Systems for a well known automotive software supplier, so I'm pretty confident this info is correct or fairly close to the truth.
    I used to have access to all the parts pricing data, including OEM costs and some of the profit margins were scarily huge. They ranged from 20% to 300% for both dealer and manufacturer.
    Often, *if* you could contact the OEM supplier direct (e.g. Delphi), you'd find they would be charging less than 10% of the over the counter cost. Of course, you can't buy direct, usually...

  10. #10
    Regular Member Ste's Avatar
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    Absolutely.
    Cost is different to price.

    Also, bottom line - dealer not making profit = no dealer

    These are businesses there to make money, and make money they must to survive - like every business.

    Personally, my car only goes to a dealer for warranty work. No other reason at all.

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