When I bring my bike to the dealer for warranty work, is this any skin off their hide?

Do dealers dislike doing warranty work, or could they care less?

Who ultimately pays for it, the dealer? Corporate MoCo?

Thanks

 

I know that when I had to get my rear tire replaced with my wheel and tire warranty they got paid by i believe the Moco. I know they only got paid 66$ an hour and not there 75$ going rate plus they got less hours than they would have if i had to pay.

 

You do!! built into the cost of the bike!! but seriously the factory reimburses the dealer for any warr billed both labor time and parts. labor times are usually less than customer pay, and they make less on the parts as well. mechanics usually dislike the work as it does pay less, temping them to cut corners at times, or, make up extra repairs on the bike to help cover their times. this is not always the case, but when I worked at the mercedes dealer, some guys best tool was their pen!!!

 

I can't say on behalf of Harley but all the manufactures I have dealt with reimburse parts just over dealer cost(5-10%) and will pay a reduced labor rate. So to answer your question, both the MoCo and the dealer pay. The dealer makes less on warranty and the MoCo covers the repairs.

 

I've been on both sides of this and I could make a convincing case for either the Dealer or the Manufacturer. But the unfortunate bottom line for the consumer, is that many Dealers consider their Service Department as a necessary evil that must be tolerated in order to sell new motorcycles. As the consumer, it should be transparent to you who is footing the Warranty bill; even though as someone else accurately pointed out; it's actually in the price of the bike. If a Dealer is complaining to you about who will pay for the warranty work on your bike, you might seriously consider finding a Dealer who values your business more than they are worried about how much the manufacturer will reimburse them.

 

I'm just wondering if a dealer rolls his eyes every time warranty work come in, or if he could care less.

 

Actually a Dealer usually makes a minimum gross profit of 30%-40% on Warranty Parts; and depending on how the Parts Department purchases Parts, it can be considerably more than this. Some States even legislate the minimum amount that a manufacturer must provide in Gross Profit to a Dealer on Warranty Parts.

 

Not where I have worked but they are all handled differently. Working at a John Deere dealership 30-35% margin is what you got selling at their MSRP. IF the dealer had all the training requirements as well as hit the benchmarks for the customer survey's the could see 20%. The labor rate paid on warranty was also dependent on these criteria but still did not pay what the customer paid. Arctic Cat was similar as well with nowhere near 30% on warranty work. Car dealerships may be different but I have not worked at one.

 

When I worked in a dealership we were paid by the book flat rate for the labor and a percentage over cost for the parts. The labor rate was an average of other shops in your area. We liked doing warranty, it paid on time every month.

 

HD as all manufacturers do reimburses the dealer at set rates. A dealer my sometimes do something for goodwill. Now don't laugh at that as some dealers do that sometimes.