Warranty Work

[NH55]

I know this topic has been discussed many times but I have a situation which I have not read about here.

I live in CT and NH and bought my tractor from an out of state dealer in December. 2 weeks ago I dropped it off at our local dealer in CT to have some warranty work done on the backhoe. They told me it would take 7 - 10 days to get the parts. Today I got a letter from them saying that Warranty work has many hidden costs (Admin, some Labor etc) which are not reimbursed by New Holland and that they build into the cost of a tractor when they sell it. They want me to send them $300 to cover this and, in the future, if it appears they have spent more than $300 covering my warranty work they will charge me again. I called New Holland about it and they are going to get back to me.

I have several issues with this.

First, if I am in NH and have a problem will I have to pay a dealer up there to do warranty work? Seems like a flaw in the warranty program.

Secondly, for $300 this dealer has basically lost any future business I would have given him in parts, maintenance and new purchases. Seems like a drop in the bucket for what could have been more money in his pocket in the future.

Anyone ever heard of this type thing or have any thoughts?

Thanks

 

[SteveInMD]

I had an oil leak at the rear end with less than 100 hours on my tractor. I was never given a bill, but I'm pretty sure the paperwork the service manager's desk said 6.5 hours of labor. I wasn't charged a penny for any of it.

 

[Soundguy]

Though I think dealers are more willing to work on equipment sold thru them.. doesn't seem like they should charge for warranty work... I've never had a car dealer do that. I've had my gmc yukon and dodge ram in for warranty and recall work to dealers that I didn't purchase thru.. etc.. never heard a word about it.

Soundguy

 

[mahlers]

Sounds a little strange to me - unless the charges they're referring to are related to transportation to/from the dealership. It would also be reasonable for them to charge some extra if you have a non-NH backhoe on the tractor. Since the backhoe can often cause some difficulties in working on the tractor (clearance issues around the subframe, removal/re-install of the subframe if necessary, etc.), it would be reasonable for them to charge extra for time spent doing things that they wouldn't otherwise have to do for warranty work. If you delivered the unit to them yourself, and you have a New Holland backhoe on the tractor (and no other aftermarket implements that they need to deal with), then that $300 seems like a rip to me.

 

[thcri]

I guess it boils down to how the New Holland warranty program works. Each industry is different. Example, in the heating and air conditioning business the manufactures don't pay labor on warranty work unless you buy some extended warranty program. So if someone comes to me to fix a furnace that was purchased through a competiting dealer I tell them I can replace the parts under warranty but can't give the labor. The installing dealer typically will add to the sale to cover the labor for a year. As Soundguy mentioned he took his Yukon to another dealer and they fixed it no charge. That is because in the automotive industries no only pay for parts under warranty but they also can collect a markup on parts and collect labor from the manufacture. So they encourage it. How does the tractor industry handle it, I don't know and maybe a New Holland dealer here can chim in. But there has been many discussions on TBN about buying from one place and expecting to get service from another. Talk of well they may handle the warranty but you may be on the end of their list. And New Holland my pay for labor and parts but does the warranty cover freight and paperwork. $300 does seem high for paperwork etc and I would be calling around asking other dealers in the area if they could help you and yes I would not buy anymore product from this dealer.

A thread I will watch.

murph

 

[NH55]

It is a New Holland Backhoe and I did drop it off myself. It also ticks me off that they waited almost 2 weeks to bring this up.

 

[JerryG]

It sounds almost like they are trying to charge you a fee for not buying from them. They haven't done the work have they?

 

[NH55]

No not yet. I get the impression they think they have me over a barrell as it's been 2 weeks now.

The person I spoke with at New Holland said she had heard of similar situations before. I can't wait to hear what they have to say about it.

 

[JerryG]

Please let use all know what they say.

 

[thcri]

If they are giving you a run around or trying to take money from you when there is actually a warranty they could end up losing their New Holland dealership.

murph