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Parts warranties
I’m wondering how everyone is handling parts warranties, especially those relating to rebuilt engines and transmissions (we’ve seen too many defective or premature failures on these, and the manufacturer is not standing behind its product, heck we’ve seen too many sub-par parts across the board!)
Here’s what I’m considering to update our terms. (BTW, we specialize in Land Rover, so our labor terms are above what the dealer and other area LR shops are offering, though I realize it may not seem like a strong warranty compared to the industry averages)
Warranty:* Labor for all general service repair work on NAS (North American Spec) vehicles under 20 yrs. old are warranted for 2 yrs. or 24k miles (whichever comes first), to the original purchaser.
* Labor for all ROW (Rest of World) imported vehicles, Vehicles over 20 yrs. old, Accessory installations, aftermarket add-ons, or modifications are warranted for 1yr or 12k miles (whichever comes first), to the original purchaser.
* Part warranties are dictated by our suppliers and manufacturers; generally, the warranty as stated above for labor is applicable unless otherwise noted. We will work on your behalf to facilitate any warranty claims.
* Engine and transmission labor warranties will match the supplier/builder’s parts warranty up to the labor warranties as stated above.
* Rebuilt and remanufactured parts; including engines, transmissions, transfer cases, differentials, and more are limited to 1yr or 12k miles (whichever comes first), unless documented otherwise.
* Any warranty work must be performed at “_________”.
* Used parts are warranted for 30 days, no labor warranty is offered on used parts.
* Customer-supplied parts are installed with no warranty for parts or labor and are installed at the customer’s risk.
Invoice signature:
Customer acknowledges warranty terms, and receipt of merchandise and services.
Thanks for your feedback.
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3 Replies
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That’s a lot to cover. Here are a few thoughts and procedures. We are an all makes shop.
Overall, we are seeing more defective parts than we used to see. NAPA has a reasonable labor claim system.
Most engines we install are used with a verifiably good service history per CarFax. Warranty varies.
Most transmissions we sublet for rebuilding. If that is not an option, we would go with OE or used units as we do with engines.
Almost everything we do, new and reman, includes a 2/24 warranty to the current owner regardless of what the parts company offers.
We install almost no add-on items.
Warranty work done elsewhere must be pre-approved by us.
We do not install customer-supplied parts.
We’ve developed these policies over 40+ years, and they work well.
Here is what appears on most invoices:
WARRANTY: We stand behind our workmanship! We will replace defective new and remanufactured parts listed above at no charge or refund the cost (our choice) within 24 months or 24,000 miles (unless stated otherwise), whichever comes first, from the original date of service—warranty limited to items charged for on this invoice. Warranty applies only if the current owner owns the vehicle and the vehicle is not used for commercial purposes. All warranty repairs must be pre-approved by Auto Centric Inc.
I hope this helps.
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Lots to unpack here,
We offer 4 years or 40,000 miles parts and labor.
Our labor rate and effective labor rates are set to support our warranties
Our labor rate and Parts GP’s are set to support our warranties.
No client supplied parts.
Warranty on street legal performance applications (on or off road) as far as parts are 12/12 unless it is clear it was a crap part.
We use the absolutely best parts we can get. We buy a lot of tier one OE parts unless not available then we can drop down.
We no longer work on vehicles over 20 years old unless it is from a very good existing client. Some time some of these parts have to be used and in most cases we will rebuild that used part to maintain the warranty.
Alignment’s are 12/12
The national affiliation we belong to offers 3/36, if a client is out of town between the 3/36 and out to the 4/40 and it is determined that it is our responsibility we will deal directly with the shop at what ever their rate is..
Negotiated fleet and municipality contracts (discounted) are 12/12.
Full pay fleet are 4/40
Engines and transmissions are per the manufacture warranty 5 year/100K etc,
Bottom line for us is we know what percentage of warranties we will have in a given year and how much it will cost the business and becomes a part (no pun intended) of what we must bill for our 20% net. It is just the cost of doing business.
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Jeffrey,
It sure sounds like you’ve had some warranty issues lately. If you’re a small operation, these issues can seem incredibly daunting. I understand your goal with your documentation is to protect yourself, but that documentation would drive me away if I were a potential customer. It oozes a lack of confidence in what you’re installing.
If you have a quality issue, vote with your wallet and find another source for parts you feel confident installing. After all, it doesn’t matter where you get them; it’s your reputation on the line. Choose wisely. If higher quality parts cost more, charge more, and don’t worry about the vehicle owners who don’t want to make a sound investment in their vehicle.
I agree with both Tom and Craig. Ultimately, parts failure is a cost of doing business and should be built into your profit model to account for the disruption so you’re making the profit you deserve.
Happy Thanksgiving to you and your family!
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