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Monday 21 August 2017
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Your Vehicle’s Warranty – Car Pro Commentary

Car WarrantyI get a lot of questions from listeners and viewers about their vehicle warranty. Not just the initial warranty, but the powertrain coverage and extended warranties.
I get enough that it is pretty clear that the majority of people do not really understand how the process works from the dealership side. It is your dealer with whom you interact when your vehicle needs a repair that is covered by any manufacturer’s warranty. 
Not all automakers handle warranty repairs exactly the same, but generally here is the way things work.
Although it is a complicated process, I will do my best to make it simple. Let’s call the car manufacturer Acme Automaker just for simplicity sake.
Acme Automaker builds a vehicle and sells it to Roadrunner Auto Sales. Roadrunner Auto Sales then sells the vehicle to a consumer. At the time of purchase, it is explained what your warranty coverage is for the vehicle you purchased. One of the main things you need to understand is that it is Acme Automaker, the manufacturer of your vehicle, that is responsible for, administers your warranty coverage, and pays for your repairs, not the dealership.
Given that, what is the responsibility of the dealer, Roadrunner Auto Sales? It is simply to make the repairs as prescribed by the manufacturer of the vehicle. This is one of the biggest challenges dealers face today…how do they make you (their customer) happy, while at the same time get the manufacturer (Acme Automaker) to pay the bill? You can see the problem here for the dealers.
So you have a problem pop up with your car, either major or minor, and you return to the service department of a dealership.
You just want your car fixed, but the dealer also wants to be reimbursed by the factory for making the repairs, so there are complex procedures that have to be followed with every repair order that is written on your car. If the dealer does not do everything exactly right, they don’t get paid for performing the repair.

Most people think it is the dealership that decides what is a covered repair and what is not, but that is not true. It is all laid out by the manufacturer. On the other side of the coin, the manufacturer opens itself up to abuse by some dealers who would cheat the system if not for the rules set forth by the warranty policy manual.

The dealers are always stuck in the middle on warranty repairs, they have to please you so you will come back and continue to do business with them AND they have to satisfy the entity paying the bill, which is the manufacturer that built the car.
Luckily, for most dealership customers, the process of getting your vehicle fixed and all the “behind the scenes” paperwork and computer entries are transparent, but sometimes the dealership has to call the factory for approval before the work can be done, especially with extended warranties. If the factory declines, the customer will generally get mad at the dealership.

It is also noteworthy to mention that the factory pays the dealership very well for work performed, but only once. If you take your car back for the same problem, the dealer generally eats the second and subsequent repair costs. This can be why cars sometimes have to be taken back multiple times for the same repair. If the technician is not very good, or inexperienced, it can be a real issue for the customer.
Since dealers are paid well to perform warranty work, the dealers welcome you with open arms no matter where you bought your vehicle. That is a little different than it was some years ago.

I hope this give you a little insight into what dealers go through to repair your car under the factory warranty. It is not easy, but the goal is to keep both the consumer and the factory happy.




6 thoughts on “Your Vehicle’s Warranty – Car Pro Commentary

    1. Michele Sanders Post author

      Yes, I think it’s a good idea. One claim and it is probably paid for, plus you’ll sleep better!

      Thanks for listening to the show.

      Jerry Reynolds, President
      Car Pro Radio Network

      Reply
  1. Phil Huva

    my wife’s 2015 Honda Accord warranty is about to expire .. would you recommend 3rd part ext warranty or Honda’s ? and why ?

    Reply
    1. Michele Sanders Post author

      Phil, good to hear from you. On this website, near the top right, click FAQ. Under CAR BUYING, I have written a detailed answer on this that will answer all your questions.

      Thanks for listening.

      Jerry Reynolds, President
      Car Pro Radio Network

      Reply
  2. Kathy Pennick

    I have a 2011 Nissan Sentra with 58,000 miles. Considering purchasing an extended warranty. Original warranty has ended. Would you recommend an extended warranty? Who would I contact?

    Thank you for your radio show.

    Reply
    1. Michele Sanders Post author

      Kathy, click FAQ at the top right of this website. I have an article about extended warranties there that will help you. Thanks for listening to the show.

      Jerry Reynolds, President
      Car Pro Radio Network

      Reply

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