Not losing money as a whole, but warranty work doesn't pay as much, so yes, you are right. The dealer doesn't profit as much, it is part of the business. The car company pays the warranty repair and that means they lose the higher labor rate, the mark up on parts and shop supplies charges that are passed to the customer. So a warranty repair doesnt give them the same profit as a regular servuice repair.
Really from what I have been trying to point out is that dealers are willing to go to bat for customers who do service with them. Such as maintenance work while bringing in for warranty work, but dealers are less than thrilled with just warranty work, dealers are trying to make money, and part of that is add on's and other work outside warranty and from a great deal of experience talking with SM's, they are not fond of going to bat for customers who only bring in for warranty. As I said, I don't usually service my vehicle at a dealer, but this is the norm for what I deal with day to day.
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40th Anniversary Fairlady Z - Tommy Kaira - FI CF CBE - Stillen Gen 3
Last edited by MyZ4U2C; 05-06-2011 at 01:10 PM.
Reason: add in more info and correct grammar
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