HERE IS THE WARRANTY INFORMATION AS WELL AS A GOOD EXAMPLE ON HOW OUR 36 MONTH / 36,000 MILE NATIONWIDE PRORATED WARRANTY WORKS:
- Anything within the first 12,000 miles or 12 months is 100% coverage
- Once you hit 13 months, you owe the months or miles (whichever is greater) that you have already used in your warranty – for example:
- If a charge was $3,600 – to get a monthly cost we divide $3,600 by 36 months and get each month of the warranty worth $100.
- If the customer comes to us at 13 months with the same problem, the warranty is over the “free period” so you look at what is the total months since the repair and in this casethe customer had the repair 13 months ago – so you take the $100 per month listed above and multiply it by 13 months to see what the customer will owe – in this case it is $1,300.
- If the customer was 24 months out from the repair – then $100 x 24 – $2,400 is due for repair.
When we do the repair, we give the customer another 3 Y / 36,000 mile warranty on the labor and parts. The customer wins because most places just give a 12 / 12 warranty, so they would have to pay the entire about for the repair again….in this case $3,600.
Now, it is the judgment of the GM / Owner if they want to give the customer the repair free again based on the situation….we rarely have this happen at all, but if a customer came in after 13 -14 months with the problem, I will likely fix it for free.
I will get a parts credit for the bad part and likely also get a labor credit. Worst case I am out a few dollars of tech labor and a part that I purchased at cost. I still make money and the customer is happy.
We use this benefit to negotiate price all the time, so there are many good ways to use this offering.