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Joe Marconi

Let's Stop Compromising with Extended Warranty Companies

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This past week, we had a customer that needed a steering rack. After giving the customer a price, and authorizing the repair, she suddenly remembered she had an extended warranty.


My service advisor explained to her that many extended warranty companies do not always pay the price we need for the job, and that they try to make deals.


Let's fast forward: after the warranty company authorized the repair, the claims rep told my service advisory that they we send us the rack ( common thing these days, right?). My service advisor tried to refuse, but the claims rep threatened they would take the car to another shop. In fact, he said, "There are shops in your area, willing and ready to do the job."


At this point I got involved, I told the rep, "First this is my customer, not yours. We diagnosed the rack, we have authorization from the customer to repair the car and do not threaten me again!"


The rep backed down and offered to pay the suggested list on a reman rack. I then called the customer, expanded to her in detail about what HER warranty company was trying to do. I also let her know that she would have to make up any shortfall in the price, which amounted to about $65.00.


It's tough out there, and too many of us are not getting the much needed dollars we need to survive. We need to stand together on this. If we cave to an extended warranty company, we will all go down in flames.



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