Just a question/discussion about dealers and warranty.

[ultrarunner]

It is all true... this is why most successful brands like Caterpillar provide outstanding service... I'm a nobody with a 25 year old machine and yet my local CAT dealer has always treated me like a king... and no exaggerating.

The idea behind lower reimbursement is the Manufacturer is only covering costs... not profit.

The problem comes when Manufacturers cut even more or/and the unpaid expenses are not covered.

I grew up around the car business and here was a common scenario...

A customer would have a problem and bring in the car and leave it...

Dealer would often need to get the zone or territory manager involved for approval of the scope of work... this can take days, discussion, moving the vehicle around, storage, liability for damage.

In the best case scenario... the repair is approved the the dealer is reimbursed for the MECHANICS cost... not the cost plus profit.

So all the wrangling and overhead and often diagnostic time is not covered...

On the other side... having a Dealership is suppose to be a profit center and your territory is protected in the franchise agreement...

I've seen a lot of warranty issues with small, thinly represented and/or under capitalized brands... anyone remember the Sterling, Yugo, etc? these dealers and their cars just ceased to be...

 

[MHarryE]

I wasn't sure how agricultural equipment companies handle it anymore but somebody answered it above. Cat's warranty is the company supplies the parts and the dealer foots the bill for the labor. However note that Cat dealers have exclusive territories - well defined and dealers do not cross borders. An exception to the dealer covering the labor cost is when there is a special program - example might be finding a weld was found to be missing on a group of machines. In that case the dealer would get paid warranty labor and mileage to have a technician go to a job site to repair.

Twenty-five years ago when I worked for Allis-Chalmers followed by Deutz-Allis and then Case-International, the dealers did get paid labor for warranty although not at retail labor rate. Parts were reimbursed to the dealer at dealer net which doesn't really doesn't cover handling cost.

So it is not as easy as dropping by any dealer and expecting them to give you the same support as the dealer who profited from the sale. Part of Cat being different is their exclusive territory agreement. They have their territory and the agreement is they will take care of anyone's equipment in that territory.

 

[jeff9366]

To correct a common misconception by about everyone including people on here: manufacturers DO NOT reimburse dealers fully, 100% on warranties. This applies to all manufacturers. Minor adjustments, diagnostic time, misc. labor, transportation and time overages ARE NOT covered by warranty. Warranty IS NOT covered 100% to the dealer.

This is how my Kubota dealer explained Kubota's warranty support to him; TIGHT.

I have Kubota KTAC insurance @ $400 per year. $250 deductible aside, KTAC pays liberally and fully on insurance claims, including transportation for repair. I put 200 - 250 hours per year on my tractor. On that many hours the KTAC insurance is cheap.

My Kubota dealer pulled one customer's tractor out of customer's pond and replaced the complete engine not once, but twice, in just over two years. KTAC paid without complaint.

 

[dragoneggs]

Lots of great replies to the OP here. I think I am blessed with a great dealer near me. I did buy my tractor from them but I have had other stuff that they graciously offered their help on, whether they fixed it or just pointed me how to DIY. I think if you don't get satisfaction from your dealer then do call the manufacturer and explain. Manufacturers tend to be more protective of their brand than dealers (especially when they are not exclusive).

 

[rbarker]

My Kubota dealer pulled one customer's tractor out of customer's pond and replaced the complete engine not once, but twice, in just over two years. KTAC paid without complaint.

Now that's what I call a slow learner.... Lol

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[Navasot]

Now that's what I call a slow learner.... Lol

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What do you mean I cant use this tractor like a dozer??

 

[ksluy]

I am with darow I have went to the same dealer spoke to a complete jerk then came back two years later and have a great experience. But yes your warranty is good at any dealer that sells that brand.

 

[k0ua]

I can tell you this much. I bought an L3400hst from dealer A. I made an offhand mention of something I had read about the Kubota Standard L's having a jerky 3pt hitch. Sales guy replied if there is something wrong with the 3pt we would repair it. When I got tired of the jerky 3pt hitch, I called the A dealer, keep in mind this is the selling dealer. Service manager said, "this is the way they are" I can send you a suction hose, "it helps some of them" etc.. Keep in mind this tractor is still in warranty. I advised him I had tons of websites documenting this problem as a universal problem with this series. He said sorry, they don't pay attention to websites or forums.

I went to dealer B about an hours drive in the other direction across the border in another state. He did not owe me a thing. BUT he tried everything in his power to research the problem and contacted the regional service manager from Kubota. He reported back the regional Kubota manager would not help as "that is just how the standard L series is" If I had wanted a smooth 3pt hitch I should have bought a Grand L.. Dealer B offered to put on a 3pt hydraulic valve section from a 3130 Grand L. But he could not do it for free. BUT he did offer me a major parts and labor discount. Keep in mind this is Dealer B who does not owe me a thing, but he is busting his axe to try to make me happy. He also contacted Kubota corporate.

Kubota corporate took a long time to respond. In the meantime I traded the tractor for a Kioti DK35seh. My problem went away on the same trailer that brought the Kioti!

Some time later I got a phone call from Kubota corporate, to discuss my problem, I advised I did not own the tractor any longer, he responded, "well I guess we cannot help you then".. I am not sure what they were go to do, as I cut him off before he had a chance to say.

So dealer responses vary.
Selling dealer: "go pound sand"
Concerned dealer in another state: "I am very sorry, and will do anything to try to help you with this".
Manufactures Regional Service Rep: "go pound sand"
Manufacture: did call back, eventually, not sure what if anything they would have done for me.

 

[allen in texas]

Ok, now I have a good understanding of "why" a dealer might not want to work on something they didn't sell but does not the fact remain that they "should" work on a warranty claim?

 

[jeff9366]

Dealers are always insecure about the amount of money they will be reimbursed by the factory for warranty work.