Warranty costs are growing faster than anyone expected. They’re costing automakers billions, but they could be a blessing in disguise for car dealers. Jim Roche, CEO of WarrCloud, explains what’s driving the increase and how both car companies and dealers need to react.
Wow.. so insightful. My family over the last 15 years has become ” A no questions asked Lexus buyer” because of the low repair costs and incredible treatment by the dealer service department. In 15 years we have had 4 repairs paid for by owner and amazing red carpet treatment. This means we always go to the dealer even if it is 20%+ for everything. Yet, it seems our go to dealer must have a new service manager. Took in the RX350 that is 7 years old at 100K – no issues out of the norm. Went back at the 110K interval and all of sudden it needed 5k of new suspension parts, flushes etc. and had control arms that needed to be replaced because it was dangerous to drive off the lot. Took it to another Lexus dealer and had them check it. They said all is well. Still love Lexus but sad that our old dealer has resorted to the entire false maintenance push( i.e. change the oil every 5k when Lexus say 10K and “you need to flush your transmission at 100K” that has given dealers a bad name. BTW is it true that the manufacturer pays 50% less than we do for repairs when it comes to warranty?