Local Kubota dealer not honoring warranty

[TractorTidy]

This thread is wearing me out, after pg.3. Guys, listen, here is the way warranty works in at least the tractor industry, no matter what color.

Warranty is not an "open" work order where anything and EVERYTHING is covered and warr. will pay for all of a certain repair or workorder.
Warranty pays for most failures but there are many stipulations and exceptions. First, companies DO NOT pay diagnostic time. So if it take 2-3 hours to figure out the problem, no warranty on that time. Also, once problem diagnosed, they pay a flat rate for that type of repair and usuallly flat rates are under estimated. Example: a mechanic spends 3 hrs. on a particular repair, warranty may only pay for 1.5 hr. So the dealer has lost 1.5 hr. labor.
Also, sometimes you get retail on parts, sometimes you may only get 10% over. If your labor rate is $70/hr., some pay a fraction of that rate. Also, if there is P.U. and Del. involved, that is not generally covered, maybe the first one only. Lastly, warranty will not cover abuse or operator errors. For example, the guy who breaks the diff. housing to which the roll bar was mounted to because he hit his doorway. No, that's stupidity, not warranty.

So, as you can see, warranties on OPE and tractors don't pay the dealer fairly. It is a necessary evil for the dealer. You will almost never make money on a warranty and most generally lose money. You're lucky if you break even. ALSO, as I am experiencing now w/ 2 different companies, one tractor and one imp. manuafacturer, warranties drag on for 2-3+ months because companies are scrutinizing payment to the nth degree. They will try all they can to throw one out or part of it, especially on larger claims. Many times they require the defective item to be sent back before they pay. That takes a month or more.
Not to mention that the dealer has his money tied up in the new part and labor for several months before it is paid. Lots of time it takes many conversations and arguments w/ company. That's what I am doing right now on the above two and both have been since way before Christmas.

Now, I to will not do warranty on a machine that wasn't purchased from me if it was bought somewhere else because of a cheaper price. That's the price the customer has to pay for a cheaper price. Take it back to the original dealer so he can take the hit. He made the money off the deal to help absorb the warranty expense. The non-selling dealer shouldn't have to take
the "hit" on a deal he didn't sell. He'll very likely lose money just by touching it. That's not fair to him. If the customer wants to pay the difference then ok, but I haven't found one yet that does.

NOW, in this case, due to the guy moving into the area and if the original dealer is too far away to go back to, then I think the local guy should handle out of courtesy. I would. Maybe in that case, the customer would be willing to pay a little of the difference.

So that is the REAL scoop. I know because I used to be a Deere dealer and am a current dealer for another tractor brand so I deal w/ it continuously.
Hopefully you all can understand the dealer's position on warranty. You certainly would if you were a dealer.

 

[DK35vince]

Thanks to all the dealers who responded.
It is interesting to hear from both sides, consumers and dealers.
I'll admit when purchasing a new tractor I do shop around for a dealer I like and also prices.
If I purchase from a dealer that is farther away, I do take warrenty into consideration, because that is the dealer I will also use if a warrenty problem arises.

 

[grsthegreat]

This thread is wearing me out, after pg.3. Guys, listen, here is the way warranty works in at least the tractor industry, no matter what color.

Warranty is not an "open" work order where anything and EVERYTHING is covered and warr. will pay for all of a certain repair or workorder.
Warranty pays for most failures but there are many stipulations and exceptions. First, companies DO NOT pay diagnostic time. So if it take 2-3 hours to figure out the problem, no warranty on that time. Also, once problem diagnosed, they pay a flat rate for that type of repair and usuallly flat rates are under estimated. Example: a mechanic spends 3 hrs. on a particular repair, warranty may only pay for 1.5 hr. So the dealer has lost 1.5 hr. labor.
Also, sometimes you get retail on parts, sometimes you may only get 10% over. If your labor rate is $70/hr., some pay a fraction of that rate. Also, if there is P.U. and Del. involved, that is not generally covered, maybe the first one only. Lastly, warranty will not cover abuse or operator errors. For example, the guy who breaks the diff. housing to which the roll bar was mounted to because he hit his doorway. No, that's stupidity, not warranty.

So, as you can see, warranties on OPE and tractors don't pay the dealer fairly. It is a necessary evil for the dealer. You will almost never make money on a warranty and most generally lose money. You're lucky if you break even. ALSO, as I am experiencing now w/ 2 different companies, one tractor and one imp. manuafacturer, warranties drag on for 2-3+ months because companies are scrutinizing payment to the nth degree. They will try all they can to throw one out or part of it, especially on larger claims. Many times they require the defective item to be sent back before they pay. That takes a month or more.
Not to mention that the dealer has his money tied up in the new part and labor for several months before it is paid. Lots of time it takes many conversations and arguments w/ company. That's what I am doing right now on the above two and both have been since way before Christmas.

Now, I to will not do warranty on a machine that wasn't purchased from me if it was bought somewhere else because of a cheaper price. That's the price the customer has to pay for a cheaper price. Take it back to the original dealer so he can take the hit. He made the money off the deal to help absorb the warranty expense. The non-selling dealer shouldn't have to take
the "hit" on a deal he didn't sell. He'll very likely lose money just by touching it. That's not fair to him. If the customer wants to pay the difference then ok, but I haven't found one yet that does.

NOW, in this case, due to the guy moving into the area and if the original dealer is too far away to go back to, then I think the local guy should handle out of courtesy. I would. Maybe in that case, the customer would be willing to pay a little of the difference.

So that is the REAL scoop. I know because I used to be a Deere dealer and am a current dealer for another tractor brand so I deal w/ it continuously.
Hopefully you all can understand the dealer's position on warranty. You certainly would if you were a dealer.

You know, i do understand the dealers standpoint on this matter. However, by agreeing to sell a brand (Kubota, Ford, GM, Kioti, whatever) you also take over responsibility of taking on their warranty work. If a company warrants their product for 2 years, its a company warranty, not a dealership warranty.

Bottom line. You back your brand.

and Wallace is 1000% right. Your losing $50-100 now on this repair (over your regular rates) may get you years of customers future purchases in the future. Seems like cheap advertising cost for 10+ years of sales???

I actually made a repair of another electricians work on a job that had an open house that day. The original guy wasnt returning his calls. I came and installed the last remaining lights without saying...who was your original electrician...bla bla bla.

I got all of his work after that. That was 8 years ago, and i have wired many, many 5,000 - 8,000 SF homes for him since then. It was one of the best things i ever did for my business. Why would anyone turn down the thought of future business over a few bucks is beyond me

 

[Willl]

I to will not do warranty on a machine that wasn't purchased from me if it was bought somewhere else because of a cheaper price.

You should put that on a sign and stick it out in front of your shop.

 

[TractorTidy]

Willl, you're probably one of those!

 

[TripleR]

TractorTidy, gotta agree with grsthegreat and Willl. I buy locally, but if my dealer had that attitude, I would sure find someone with a different approach to business and customer service.

 

[beppington]

Now, I to will not do warranty on a machine that wasn't purchased from me if it was bought somewhere else because of a cheaper price. That's the price the customer has to pay for a cheaper price. Take it back to the original dealer so he can take the hit. He made the money off the deal to help absorb the warranty expense. The non-selling dealer shouldn't have to take the "hit" on a deal he didn't sell. He'll very likely lose money just by touching it. That's not fair to him. If the customer wants to pay the difference then ok, but I haven't found one yet that does.

This is good information. BTW, what is your dealership name?

 

[Martian]

This is good information. BTW, what is your dealership name?

Nice catch! I missed that. Maybe it's the OP's!:laughing:

 

[Robert_in_NY]

This is good information. BTW, what is your dealership name?

Its in his profile. Haltom Equipment, Mooresville

I don't know anything about him or his dealership/business. Its his investment and I feel that gives him the right to run it however he feels is proper and regardless if we disagree it isn't our place to attack him for sharing his honest thoughts on this particular topic. I actually appreciate hearing from both sides of this topic and if he is a good dealer then he won't have very many people buying tractors from outside his area to even have to contend with this problem.

And I didn't mean to imply you were attacking him Beppington, just in general as I see this thread turning ugly very fast.

 

[TripleR]

Its in his profile. Haltom Equipment, Mooresville

I don't know anything about him or his dealership/business. Its his investment and I feel that gives him the right to run it however he feels is proper and regardless if we disagree it isn't our place to attack him for sharing his honest thoughts on this particular topic. I actually appreciate hearing from both sides of this topic and if he is a good dealer then he won't have very many people buying tractors from outside his area to even have to contend with this problem.

And I didn't mean to imply you were attacking him Beppington, just in general as I see this thread turning ugly very fast.

Not attacking just restating an opinion consistent with my earlier posts.