Warranty Repair Rates

NoVaGT · Jun 20, 2018

When Ford approves a warranty repair, is the dealership paid for the labor at a pre-negotiated rate? Or does Ford pay them what the dealership charges it's regular customers?

I'm asking because I get the impression that some dealership service departments don't want to do warranty work, and I'm wondering if it's because of money.

Ace21 · Jun 20, 2018

I am curious about this too as I have noticed that they seem reluctant and take longer to complete warranty issues even after Ford's approval.

TomcatDriver · Jun 20, 2018

This may depend on the state. I looked this up once, and in CA anyway the manufacture is required to pay the same rate as other customers.

tripp · Jun 20, 2018

The warranty repair times are set by Ford. The individual dealership's warranty dollar per hour rate varies and is set by Ford based on numerous factors.

jonrjen · Jun 20, 2018

Bottom line is that NO, Warranty work does not pay the dealership at the same rate as the retail customer.

For those who don't know, when you take a vehicle in for service that you are paying for out of pocket most dealerships charges by book hours. If the book says that a repair will take 3 hours of time, you are charged for 3 hours of labor...……….even if the repair only took 45 minutes.

NoVaGT · Jun 20, 2018

jonrjen said:
Bottom line is that NO, Warranty work does not pay the dealership at the same rate as the retail customer.

For those who don't know, when you take a vehicle in for service that you are paying for out of pocket most dealerships charges by book hours. If the book says that a repair will take 3 hours of time, you are charged for 3 hours of labor...……….even if the repair only took 45 minutes.

So, how are the dealers paid for their labor on warranty work?

bcreed1983 · Jun 20, 2018

What tripp said is correct, I work at a Ford dealership and we have a pre-negotiated warranty labor and parts markup rate. It varies from state to state and dealer to dealer depending on a lot of factors but as a rule of thumb it is never the same as customer pay labor rate.

tripp · Jun 20, 2018

NoVaGT said:
So, how are the dealers paid for their labor on warranty work?

Same way, except Ford sets the labor time (as opposed to Mitchell, Alldata, etc which set the customer pay rates based on warranty times). If the warranty job pays 3 hours, and the tech takes 2 hours to do it, the dealership still gets 3 hours at whatever their warranty labor rate is.

Warranty Repair Rates

NoVaGT

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Ace21

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TomcatDriver

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tripp

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jonrjen

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NoVaGT

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bcreed1983

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tripp

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