clangjr

Can someone explain how dealers make money from warranty service?

docjan_uk

The dealer bills AOA or Audi UK for parts and labour.
If they could they'd rip that car half to pieces to milk Audi dry ;p

Audi itself sets aside a certain percentage from each car just for warranty work.
Porches set aside 25% of their value just for warranty work... and they make a crapload of $ as a company which just goes to show how much they overcharge... but for a good product

clangjr

The reason I ask is because I am trying to get out of this demonic A4, and I've had it in for service a TON of times. If they make a fair amount of money each time I bring it in, I think that should be considered in my dealings with the new vehicle. Is this unreasonable???

April

Give the service manager a list that shows when you brought in the car, and what you wanted done. Also note whether it was done or not. Note what is presently fixed and what is not fixed. Ask the service manager to make an appointment with the zone rep to inspect the car. You can do this whether the car is still able to qualify for lemon or not - so long as it is under warranty.

docjan_uk

I mean weve been in a crap load of times too, just want to get rid of this current car...zero luck with it.If you want to lemon it or get some kind of a favourable exchange, you would have to start writing to the dealership and AOA or Audi themselves and start voicing the issues and how you feel about the way this car has been.
Then you could get some kind of token offer... depending on how bad the car is, you could kind of get some kind of a favourable exchange though as for talking about the business you give them due to warranty, that particular route is hazy at best.
Always worth a mention of course.

Shaun

Dealers don't get paid as much by Audi to do warranty work as they would from billing the customer for the same job. This is part of their incentive to avoid warranty work claims and charge the job to you... :&gt

lawong

haha... citris status.. I love it.

April

into a hefty chunk of change if the dealer can get into the top three dealers for their region each quarter. So it's a fine balance between trying to make money up front, and trying to hit the bonus on the back end. So ticking off everyone by "fixing" their cars multiple times won't help them in the end. Not only that, but too many repeat repairs, and AoA can audit the entire service and parts dept to see if they are being repeat billed or overcharged. Heavy fines for that.