Labor warranty on parts installed along with major repairs
Posted to Shop Management Forum on 3/7/2017
55 Replies
I searched the archives to see if this was previously
addressed and could not find a case of it. So, here goes...
In the course of replacing and engine or a clutch for
example, the rear main seal is replaced not because it's
leaking or maybe because it is, doesn't matter. Since the
rear main seal is easily accessed during such a repair, I
generally charge .5hr to 1.0 hr. for the installation.
That's it, installation of a part, not the actual repair.
So, suppose that rear seal fails in the next year or 12K
miles (my warranty term); how do you guys deal with that? Do
you a.) replace it under your parts & labor warranty;
even though you never really got paid to do it the first
time. b.) replace it with a new seal(part is guaranteed) but
charge the labor you did not charge when you installed it at
the discounted rate, since it was accessible at the time; or
c.) Charge full labor to replace the seal and provide a seal
for no cost?
I'd like to hear other perspectives on this and how to
present it to the customer so they understand up front how
this works when you/they circumvent the normal labor costs
associated with a repair, while performing nearby repair.
This has been an issue in the past and my policy is
difficult to explain and seems to blow people away. Maybe
because they are playing dumb or maybe because they simply
don't understand that they have to pay for an installation
at full price to get a warranty replacement/re-installation
for free.
So here's my presentation: "Mr. Smith, I have replaced the
engine in your car with a used engine which has a 90 day
warranty. The rear main seal was leaking, normally, this is
an expensive repair if the engine is in the car. As we
previously discussed, it's smart to replace the rear seal
before installing the engine so that you don't have to do it
later and pay the higher cost due to labor. The seal itself,
has a 12/12 warranty but the labor to replace it is not
warranted. IF it fails and has to be replaced, the usual
labor charge to replace it will be charged. The part has a
warranty, but installation is not covered. If the seal
starts leaking and you pay usual labor charge to have it
installed, the entire repair will be warranted for the
duration of the original part warranty and the labor will be
warranted for 12/12 from the second date of installation."
This eliminates the problem of installing said part and
feeling/being compelled to replace a 5-6.5 hour job part for
free. They like to think that since you installed it, it has
the same warranty terms as if you did the repair
specifically for the rear seal. Just because you saved them
money installing it when it was easy, should not mean that
they win if the part fails and never pay the actual price to
replace that part.
Another common situation is replacing cam and crank seals
when replacing a timing belt. The Belt job works out fine,
but the front crank seal or a cam seal starts leaking. So,
mostly we seem to charge a small amount per seal in addition
to the timing belt labor. I've had to replace a cam seal
that failed and it was a lot of work to do for the .5
additional I got when I installed the seal. Every time we
offer to fix a problem before it becomes one or save someone
$, it should not put us in a position to lose $$$. This is
why I discuss this with people up front. What do you guys
do, think, suggest? There must be a better way to present
and deal with this kind of thing. I don't have a full
warranty policy printed on the reverse of my invoices like
they do at the dealerships.
Robert Nissen Owner/Technician Nissen Automotive, Inc Angier, North Carolina, USA
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