[username]

Does BMW pay dealerships for labor and provides free part for warranty repairs?

 

[in_d_haus]

I know they provide parts...probably labor too.

 

[The HACK]

Does BMW pay dealerships for labor and provides free part for warranty repairs?

You've already paid for all that whey you bought your car...I can't imagine outside of research and development costs, these cars costing more than $15,000 in raw materials and labor.

 

[CD-55]

Does BMW pay dealerships for labor and provides free part for warranty repairs?

Of course they pay for labor and it is a lot of money! The parts get charged back to BMW

 

[Dr. Phil]

I'm fairly sure they charge out by hour for warranty work. The rate is obviously lower then what we pay but they do get paid.

I know for sure this is how it works for other brands (Honda service manager explained it to me).

 

[Alex Baumann]

I don't know if we feel sorry, but I'm sure my dealer feels really sorry since I got my car. Beside all these labor and parts cost, they must buy a big pack of coffee and pralines for me, to have enough supplies for my weekly visits.

Apart from that they must pay for my Prozac now

 

[DrBimmer]

Here's the scoop

I'm fairly sure they charge out by hour for warranty work. The rate is obviously lower then what we pay but they do get paid.

I know for sure this is how it works for other brands (Honda service manager explained it to me).

Here is a brief insight into the world of warranty work. Lets take a simple repair like an engine oil service. The warranty pays 6 FRU's to do this repair. Each FRU (flat rate unit) is equivalent to one eigth of an hour. Therefore, the dealer gets .75 hours labor. The labor rate varies from shop to shop and is calculated by BMWNA. My dealer for example charges $90 an hour, and BMW pays them $86 an hour, up from just $75 a few months back. The difference is much smaller than it used to be. As far as all else goes, the labor hours are usually less, but everything else is quite similar.

The dealer also pays for the parts, albeit at a discounted rate. The price they pay is something like 40% above dealer cost. This is significantly less that what you or I pay, but the dealer does make a good sized profit.