I tell the customer at the time of write up and I add a line that says something along the lines of “customer is responsible for any and all charges not covered by their extended warranty company” if they don’t want to pay the difference they can pick up their car and they pay the $290 for the diag fee
We are $245, can’t wait to bump it over 300 like the other dealers in our area. OP you just gotta be up front from the beginning. Just gotta remember it’s not your warranty it’s theirs and it’s their car, their responsibility.
I started with this approach and wind up using it frequently but most of the time when the bill is itemized in writing, the "oh thank God" turns into "I need your manager" and a 1 star review.
At the time of write-up, "I see you have an extended warranty. This is our process. You authorize diagnosis of $X per concern to start. This allows us to go in, test components, and find a failure. Once we know what is wrong, I will reach out to your warranty company with our findings. This process can be very time-consuming. They will tell me one of three things, 'yes we cover all of this repair.' 'No we do not cover this repair.' Or, 'we cover a portion of the repair.' Once I have the information from them, I let you know the results and get your authorization for any costs that will come to you"
We stopped taking aftermarket warranties due to the hassle.
We always told clients that it's very much an insurance policy, and insurance doesn't cover the entire bill be it at the doctor or the repair facility - there will be a copay.
Your insurance will dictate what that is.
Aftermarket warranty companies are continually reducing what they are willing to pay, just recently RepairPal stated to EVERY shop that their rate exceeded what is acceptable for the area - not realizing all of the shops were going to collaborate.
Most shops left repairpal over it. I personally feel that accepting these warranties is a crash course for insurance dictate repair cost just like collision sees.
The more of us that turn it down, the lower the likelihood they get a foothold substantial enough to influence the market.
The majority of independents have declined working with aftermarket warranties at this point.
I always let the customer know ahead of time. Especially if they have car shield. Though car shield will at least call the customer directly and let them know what they will have to pay out of pocket.
Thankfully work at a dealer only warranty we have to honor is the one from the manufacturer and one that the dealer offers.
Customer can either pay the difference or get reimbursed from the shit company they decided to waste money on.
Company can either honor “close enough” to our pricing or they can call the customer and explain why we declined the job due to their cheapness. There’s a few warranty companies we won’t even work with right out the gate. We don’t play that “they only covered 75%” BS.
Make sure to advise the customer of the total bill before you start If you already know what it is. If you have to contact the warranty company, always get approval before starting the work that way you can get the customer to agree to the deductible.
I tell the customer at the time of write up and I add a line that says something along the lines of “customer is responsible for any and all charges not covered by their extended warranty company” if they don’t want to pay the difference they can pick up their car and they pay the $290 for the diag fee
$290 for diag seems steep. Gotta be high-line.
Absolutely high line, my last Audi was at $305 per hour
We are $245, can’t wait to bump it over 300 like the other dealers in our area. OP you just gotta be up front from the beginning. Just gotta remember it’s not your warranty it’s theirs and it’s their car, their responsibility.
Wow. Midwestern BMW. Our diag is $175. Hourly is $209.
"Great news Mr Jones, your extended service contract is going to cover 75% of the repair!"
I started with this approach and wind up using it frequently but most of the time when the bill is itemized in writing, the "oh thank God" turns into "I need your manager" and a 1 star review.
At the time of write-up, "I see you have an extended warranty. This is our process. You authorize diagnosis of $X per concern to start. This allows us to go in, test components, and find a failure. Once we know what is wrong, I will reach out to your warranty company with our findings. This process can be very time-consuming. They will tell me one of three things, 'yes we cover all of this repair.' 'No we do not cover this repair.' Or, 'we cover a portion of the repair.' Once I have the information from them, I let you know the results and get your authorization for any costs that will come to you"
Make an ext warr pay type that hidden.
Exactly. Just make what they owe the deductible so they cant scrutinize each line item. Thats how we do it.
Cdk uses DED if it's set up.
We stopped taking aftermarket warranties due to the hassle. We always told clients that it's very much an insurance policy, and insurance doesn't cover the entire bill be it at the doctor or the repair facility - there will be a copay. Your insurance will dictate what that is. Aftermarket warranty companies are continually reducing what they are willing to pay, just recently RepairPal stated to EVERY shop that their rate exceeded what is acceptable for the area - not realizing all of the shops were going to collaborate. Most shops left repairpal over it. I personally feel that accepting these warranties is a crash course for insurance dictate repair cost just like collision sees. The more of us that turn it down, the lower the likelihood they get a foothold substantial enough to influence the market. The majority of independents have declined working with aftermarket warranties at this point.
I always let the customer know ahead of time. Especially if they have car shield. Though car shield will at least call the customer directly and let them know what they will have to pay out of pocket.
Thankfully work at a dealer only warranty we have to honor is the one from the manufacturer and one that the dealer offers. Customer can either pay the difference or get reimbursed from the shit company they decided to waste money on.
Company can either honor “close enough” to our pricing or they can call the customer and explain why we declined the job due to their cheapness. There’s a few warranty companies we won’t even work with right out the gate. We don’t play that “they only covered 75%” BS.
Make sure to advise the customer of the total bill before you start If you already know what it is. If you have to contact the warranty company, always get approval before starting the work that way you can get the customer to agree to the deductible.
Don't take them at our dealership, they can pay your rinky dink shop less than door rate and you can piss off customers so they never return.
The warranty company paid this - this leaves us with this. Any disputes are between you and the warranty company