Dealer get paid less on warranty repair?
11-18-16, 01:51 PM
#1
Intermediate
Thread Starter
Dealer get paid less on warranty repair?
Dealer replaced both my seeping rear struts under warranty, They say they bill it to insurance company less than bill it to customer for the same job. 2 rear strut cost $460 for parts on the invoice to the insurance company, it will be $615 if it is not warranty repair and I need to pay from my pocket. Dealer also charge insurance company less on the labor rate.
11-18-16, 02:09 PM
#2
Lexus Fanatic
Correct, warranty work is billed at a different rate than retail work, same with insurance work.
11-18-16, 02:41 PM
#3
Correct, like the dentist charging people without insurance full pop or taking the reduced amount the insurer will only pay. Its called screwing the little guy. Those Lexus dealer benefits and bling are not free. This is why probably more than half of service customers avoid dealers and find independent shops. Nordstroms or Kohls, same shirt. My dealership had 3 time guides. Volvo manufacturer's time guide for warranty work, Chilton manual for aftermarket extended warranty work and rip your heart out for customer pay.
Last edited by Kennyr44; 11-18-16 at 02:51 PM.
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