
Signature
-Mike-
mmarlowREMOVE@alltel.net
>>>"Tibby05 via CarKB.com" <u19004@uwe> wrote in message
>>
[quoted text clipped - 31 lines]
> make on wonder why dealers would not want to do the warranty work - hell
> they get paid by Hyundai to do the work... right?
It depends on how they get paid. I know that some domestic brands used
to, and maybe still do, pay their dealers a flat rate for various
warranty repairs. The trouble is that flat rates are typically
determined using skilled mechanics, all tools right handy and a clean
and rust-free vehicle. Performing the same repair on a car that has
seen 50,000 miles of road salt in NY or PA, often takes a lot more time
than the flat rate allows. Thus the dealer may actually lose money on
warranty repairs. Losing money is a strong incentive to shy away from
warranty work!
Matt
Mike Marlow - 25 Feb 2006 19:02 GMT
> It depends on how they get paid. I know that some domestic brands used
> to, and maybe still do, pay their dealers a flat rate for various
[quoted text clipped - 5 lines]
> warranty repairs. Losing money is a strong incentive to shy away from
> warranty work!
Well... from the for what it's worth department...
I don't really know how dealer compensation works these days, but my
neighbor works at the local Chevy dealership as a lead mechanic. That
dealership loves warranty work based on the compensation they get from GM.
Now... I have no idea what's behind all of that. I don't know if it's
because rates are now better than they might have been in the past, or if
the book pays such that the mechanic can do way better than the book (as is
usually the case for book rates on Big 3 cars), or what. Maybe, as you
allude, the Hyundai rate isn't as attractive. Even so, you'd expect that
warranty work would be warranty work. Hyundai has been here long enough
that if warranty work was not being done properly they'd have gotten major
publicity by now.

Signature
-Mike-
mmarlowREMOVE@alltel.net
Brian Nystrom - 26 Feb 2006 11:59 GMT
>>>> "Tibby05 via CarKB.com" <u19004@uwe> wrote in message
>>>
[quoted text clipped - 43 lines]
> warranty repairs. Losing money is a strong incentive to shy away from
> warranty work!
I've heard that Hyundai's dealer reimbursement is pretty good, but I
would imagine that it's still not as profitable as getting paid their
hourly rate plus the profit on parts. I also suspect that there's a
significant mindset against doing warranty work base on perceived
differences in profit that may not be real. Perhaps it's a legacy from
days when dealers were not well treated by manufacturers. Also, many
dealerships are multi-line, so if one manufacturers skimps on warranty
work compensation, the dealership's policy/attitude is likely to be the
same for all of that dealer's lines.