11-15-2011, 06:17 PM | #1 |
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Warranty repair data
Anybody have any data as to what an "average cost of warranty repairs" is on BMWs. Not cost to consumer obviously because it's a warranty. Also curious to know what percentage of extended warranties actually are used. Obviously dealerships and manufacturers would not keep pushing them if they lost money on selling them. It's insurance basically and as a whole they must be making money on thm or they would stop offering it. Just fishing here. Please respond if you have any info.
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11-15-2011, 07:32 PM | #2 |
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Extended warranties are a total win for the dealer, particularly if they're used. They get the bennie up front or the sale, then if it's used later they charge the work to BMW. BMW dollars come in to the dealer. The warranty means the business comes to the deler vice some third party. For the dealer it's only a question if they get paid once or more. On the second part it benefits the car owner, too. Only a loss for the owner if never used. For the manufacturer, they make money if their quality beats their reputation -- essentially a hedge.
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