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It simply IS true. Dealerships charge the customer a markup on parts that they get from the manufacturer for non-warranty repairs, a lot of the profit in a repair comes from the mark up on parts. On a warranty repair the dealership is not purchasing a part from GM and then selling it back to GM with a markup in order to do the warranty repair... they just get the part for free and charge GM for the labor.

Keith
No, it is not true. Period.

Let's look at a typical law - one from Washington state:

Their law says (the bold print was added by me):
Each manufacturer shall provide each of its dealers with a schedule of compensation to be paid to the dealer for any warranty work or service, including parts, labor, and diagnostic work, required of the dealer by the manufacturer in connection with the manufacturer's products. The schedule of compensation must not be less than the rates charged by the dealer for similar service to retail customers for nonwarranty service and repairs, and must not be less than the schedule of compensation for an existing dealer as of June 10, 2010.

The rates charged by the dealer for nonwarranty service or work for parts means the price paid by the dealer for those parts, including all shipping and other charges, increased by the franchisee's average percentage markup. A dealer must establish and declare the dealer's average percentage markup by submitting to the manufacturer one hundred sequential customer-paid service repair orders or ninety days of customer-paid service repair orders, whichever is less, covering repairs made no more than one hundred eighty days before the submission.

A copy can be found here: RCW 46.96.105: Warranty work.

Just about every other state has a similar law.

Short version: The dealership gets paid retail rate for parts when they perform warranty work.
 

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No, it is not true. Period.

Let's look at a typical law - one from Washington state:

Their law says (the bold print was added by me):
Each manufacturer shall provide each of its dealers with a schedule of compensation to be paid to the dealer for any warranty work or service, including parts, labor, and diagnostic work, required of the dealer by the manufacturer in connection with the manufacturer's products. The schedule of compensation must not be less than the rates charged by the dealer for similar service to retail customers for nonwarranty service and repairs, and must not be less than the schedule of compensation for an existing dealer as of June 10, 2010.

The rates charged by the dealer for nonwarranty service or work for parts means the price paid by the dealer for those parts, including all shipping and other charges, increased by the franchisee's average percentage markup. A dealer must establish and declare the dealer's average percentage markup by submitting to the manufacturer one hundred sequential customer-paid service repair orders or ninety days of customer-paid service repair orders, whichever is less, covering repairs made no more than one hundred eighty days before the submission.

A copy can be found here: RCW 46.96.105: Warranty work.

Just about every other state has a similar law.

Short version: The dealership gets paid retail rate for parts when they perform warranty work.
Yes, that is the law, and we all know that every dealer follows the letter of the law in every dealing they have with every customer. Always.

Bottom line, some dealerships will attempt to gouge customers however and whenever they can.

It’s not most, maybe not even many, but it happens. It’s happened to me more than once.
 

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Yes, that is the law, and we all know that every dealer follows the letter of the law in every dealing they have with every customer. Always.

Bottom line, some dealerships will attempt to gouge customers however and whenever they can.

It’s not most, maybe not even many, but it happens. It’s happened to me more than once.
Now you are moving the goalposts, but let’s break it down.

Warranty repair work is a significant portion of repair work performed by dealerships. You can bet your bottom dollar that they are going to obtain their legally mandated retail rate. Any dealership that doesn’t would be out of business quickly.

If the dealership’s motivation is to profit as much as possible, as you say (and I agree), their incentive is to have the work covered by warranty so the customer is left with money in their pocket to spend on non-warranty service and repairs. Under your theory, they would have LESS opportunity to make money. No dealership wants that.

Warranty coverage also makes for a happy customer. Happy customers are more likely to be repeat customers.

Simply put, neither honest dealerships nor dishonest dealerships have any incentive for a customer to pay out of pocket for work that could be covered by warranty.
 

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Now you are moving the goalposts, but let’s break it down.

Warranty repair work is a significant portion of repair work performed by dealerships. You can bet your bottom dollar that they are going to obtain their legally mandated retail rate. Any dealership that doesn’t would be out of business quickly.

If the dealership’s motivation is to profit as much as possible, as you say (and I agree), their incentive is to have the work covered by warranty so the customer is left with money in their pocket to spend on non-warranty service and repairs. Under your theory, they would have LESS opportunity to make money. No dealership wants that.

Warranty coverage also makes for a happy customer. Happy customers are more likely to be repeat customers.

Simply put, neither honest dealerships nor dishonest dealerships have any incentive for a customer to pay out of pocket for work that could be covered by warranty.
No, I’m not moving anything.

I related my personal experience, and you replied by citing the regulations that dealerships are supposed to follow when a repair is a warranty repair.

Here’s a scenario:

You go to a dealership with an issue that should be covered under warranty, and the honest charge would be $1000, paid for by the manufacturer. The dealership tells you that the repair is not covered by warranty, and is going to cost $2,000.

See how that works?

Apparently, so do some disreputable dealerships.
 

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No, I’m not moving anything.
Sure you are. You were just claiming that dealerships were not paid a markup for warranty parts. Rather than conceding that you were wrong you just switched to a different argument.

Here’s a scenario:

You go to a dealership with an issue that should be covered under warranty, and the honest charge would be $1000, paid for by the manufacturer. The dealership tells you that the repair is not covered by warranty, and is going to cost $2,000.

See how that works?

Apparently, so do some dealers.
We can all make up scenarios, but what matters is how often that happens. Without going into details, I am intimately familiar with this subject matter. (No, my company is not a dealership. I have no incentive to cover for them.) What you are describing is, at best, insanely rare.

Service advisors sell work based on pre-set rates. For example, a transmission change on a Toyota RAV 4 is rated at X number of hours. That’s what the customer (or manufacturer for warranty work) is charged. Manufacturers routinely audit dealerships and their service departments. Varying hours for the same job would stick out like a sore thumb. Even if they weren’t audited it would be a class action consumer fraud case just waiting to happen. There is an entire cottage industry of lawyers looking for these types of cases.

Service advisors aren’t carnival barkers sizing up each customer. They sell, for sure, but there are well established parameters. They try to sell you MORE work. But they don’t change rates from customer to customer. They want the work to be covered by warranty so they can try to sell more work to the customer. Trust me.

99.9% of the time when a dealership tells you that a repair is not covered under warranty it’s because they truly believe that it won’t be. They often go to bat for customers with the manufacturer. Customers are so skeptical of dealerships that they just assume that it’s the dealership who is screwing them over. If they took the time to really understand this area of dealership business, and had a genuine willingness to learn, they would realize that they are completely wrong.
 

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Sure you are. You were just claiming that dealerships were not paid a markup for warranty parts.


We can all make up scenarios, but what matters is how often that happens. Without going into details, I am intimately familiar with this subject matter. (No, my company is not a dealership. I have no incentive to cover for them.) What you are describing is, at best, insanely rare.

Service advisors sell work based on pre-set rates. For example, a transmission change on a Toyota RAV 4 is rated at X number of hours. That’s what the customer (or manufacturer for warranty work) is charged. Manufacturers routinely audit dealerships and their service departments. Varying hours for the same job would stick out like a sore thumb. Even if they weren’t audited it would be a class action consumer fraud case just waiting to happen. There is an entire cottage industry of lawyers looking for these types of cases.

Service advisors aren’t carnival barkers sizing up each customer. They sell, for sure, but there are well established parameters. They try to sell you MORE work. But they don’t change rates from customer to customer. They want the work to be covered by warranty so they can try to sell more work to the customer. Trust me.
I guess we’ll just have to agree to disagree when it comes to what some dealers will or won’t do to cheat customers.
 

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Sure you are. You were just claiming that dealerships were not paid a markup for warranty parts.
I never claimed anything about dealer markup, or parts, maybe that was another forum member?
 

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I guess we’ll just have to agree to disagree when it comes to what some dealers will or won’t do to cheat customers.
I’m not suggesting that it never happens. I’m just saying that it’s so rare that you would be extremely naive and foolish to assume it is happening. There is definitely not a concerted effort by dealerships to deny warranty coverage as some people here have suggested.
 

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Hummm.. are we starting to see components that can't be expected to make it to 100K? Chevy has never been know for the durability of their modern cars. It would be ironic if the main battery turned out to be the longest lasting component of the Bolt..
Don't worry, I have no doubt that at least the members of this forum are able to articulate when they call corporate with their lawyer in the background that whatever failed no matter what is part of the 8/100k covered area. As for the main battery, they padded the degradation level to a point where I don't think they will ever see a claim beyond a cell going completely south. The interesting part, is that there is a group that thinks the 2020 game changing increase in range is significant. When we will start seeing the discussions where members are going into the dealership to fight over loss of range fighting with Torque screenshots that it's time to replace the battery?
 

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That could be the case. If so, my apologies.
Sometimes hard to keep track.

Let’s hope we hear from the OP again, it’s his very expensive “gearbox” repair that kicked-off this discussion.

We’ll wait and see if his issue gets resolved, one way or another. Hope GM and the dealer come through for him.
 

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it’s his very expensive “gearbox” repair that kicked-off this discussion
Wonder if it ran low on oil, oil pump failed, or the filter was clogged. Having an issue with the oil system is about all I can imagine can happen to a gearbox.
 

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Can the original poster clarify what parts were replaced and if it was under warranty and if not how much it cost? Also, did it fix all problems? Under 100 K is not good for major things to be failing.
 

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I am not surprised about the struts. The Bolt is a small, but very heavy car with the weight of the battery. The suspension was a concern when I bought it, but at 14,000 miles hopefully I have a long way to go before I find out.
 

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I am not surprised about the struts. The Bolt is a small, but very heavy car with the weight of the battery. The suspension was a concern when I bought it, but at 14,000 miles hopefully I have a long way to go before I find out.
There are plenty of heavier cars out there, not as small perhaps but the engineering knowledge and parts to deal with a heavy load are certainly well understood. I really don't see any reason to expect the suspension on the Bolt to be any worse than other vehicles. I have a 1993 Plymouth Grand Voyager that I've owned since new - it's heavier than the Bolt, has had its front and rear shocks replaced exactly once, and nothing else in the suspension has been an issue.
 

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In my opinion, struts / shocks at 86000 miles is not unheard of for a vehicle of any kind or weight.

Not ideal sure, but I've had to replace struts at 70k on a Maxima that was regularly driven on a poorly paved suggestion of a road.

Also I guess I'm looking at the gearbox repair from a different class expense of former vehicles, because if it includes everything in one unit that TimBolt describes, that doesn't seem too bad. Honestly a cost I would pay to keep from buying another car.

What makes this really hurt for the OP is the lease agreement.
 

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Well, I have a 2013 Volt with 130k miles that has needed NO repairs. My Bolt has 80k and no repairs either. But road conditions and winer I guess can make a difference. Living on California and driving on pretty good highways probably makes things a bit easier on my cars. Still, I'm impressed that neither my Volt or Bolt have any interior squeaks or rattles either.
 

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It could be that the OP lives in a pothole-ridden city like San Francisco, with most of those 86,000 miles driven during commercial operation with an average weight of 2+ passengers, and maybe sometimes in a hurry, hitting potholes and speed bumps with as much as 1000 lb total cargo in a car that is already heavy.

Uber drivers rarely realize just how poorly they're paid because they don't take vehicle depreciation and maintenance into account when looking at their "profit".

But a lemon? It obviously does not meet the definition for that. It may not even be a surprising failure.
 
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