Profit margin: Warranty work vs out-of-warranty work

DrivingPassion · 05-06-2019, 09:33 PM

For BMW dealerships, does anyone know, for sure, if there is a difference in the profit margin between work done under warranty vs those done out-of-warranty?
I'm now curious ...

Pray for Mojo · 05-06-2019, 11:34 PM

Yes, there is two books, one for warranty time, the other for customer pay. Every manufacturer does this.

DrivingPassion · 05-07-2019, 12:03 AM

Quote:

Originally Posted by Pray for Mojo

Yes, there is two books, one for warranty time, the other for customer pay. Every manufacturer does this.

Would'nt human nature discriminate against the former since the profits are less?

EM240 · 05-07-2019, 07:38 AM

Quote:

Originally Posted by DrivingPassion

Would'nt human nature discriminate against the former since the profits are less?

Actually, there are bigger pockets to submit against with warranty work. It’s not unheard of for SAs to abuse it for that reason. In fact my SA was hired after being fired at a different non BMW dealership for tons of fraudulent warranty work in a bizarre set of circumstances.

05-06-2019, 09:33 PM	#1
DrivingPassion Lieutenant 130 Rep 485 Posts Drives: '15 M235xi Join Date: Nov 2006 Location: WA iTrader: (0)	Profit margin: Warranty work vs out-of-warranty work For BMW dealerships, does anyone know, for sure, if there is a difference in the profit margin between work done under warranty vs those done out-of-warranty? I'm now curious ... __________________ 2015 M235i xDrive 8AT
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05-06-2019, 11:34 PM	#2
Pray for Mojo Major 430 Rep 1,115 Posts Drives: 2014 M235i & 2018 X3 M40i Join Date: Apr 2014 Location: Calgary iTrader: (0)	Yes, there is two books, one for warranty time, the other for customer pay. Every manufacturer does this.
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