Warranty repair doesn't pay for everything...?

AjaxTheDog · Jul 11, 2013

Wow...

nhwstormin said:
Unfortunately, this issue is all too common in all vehicle warranties. I suspect the dealer was not reimbursed too much to change out a sight glass, as opposed to a full engine or transmission overhaul, that's why they did not just waive the oil fee.

Also, the Governor (or at least his department of revenue) get's some of the blame. In Colorado, and in many other states, if the dealer does not "sell" consumables, then the dealer has to pay use tax on his cost for those items because the inventory exemption from sales tax only applies to items the dealer ultimately sells to his customer.

I recently went through a frustrating experience with my new Triumph Bonneville when the transmission failed at under 2000 miles in the middle of no where. I had to rent a U-haul trailer, an F-150 to tow it, motel costs because it failed after hours and gas to travel the 450 miles to a dealer. The ultimate problem was the manufacturer's employee never installed the clip that holds the gears on the shaft and the gears migrated and the end one fell off. While I got a new transmission, Triumph will not reimburse me for my substantial out of pockets despite the fact this was pure negligence, not really a material failure.

$35 seems like a helluva deal to me. I'm out over 10 times that number.

Thanks nwh, but I am not following what you are saying here. The dealer does sell the oil retail. And like I said, the reimbursement relationship between the dealer and BMW NA does not matter to me, the point is that the dealer has no right to modify my warranty terms because of that.

I think you are lucky you weren't injured or even killed because of the trans failure. A locked up wheel at interstate speeds is unimaginable to me and could have easily proved fatal for yourself and others if you were in a group of riders. I know incidental and consequential damages are not usually covered by warranties but if this was caused by negligence then that is a different matter. IMO you ought to talk to a lawyer about that.

billy walker · Jul 11, 2013

nhwstormin said:
Unfortunately, this issue is all too common in all vehicle warranties. I suspect the dealer was not reimbursed too much to change out a sight glass, as opposed to a full engine or transmission overhaul, that's why they did not just waive the oil fee.

Almost guaranteed not. They (the dealer) doesn't understand the terms of the warranty and how to write it up properly in order to get reimbursed. BMW NA is a stickler on warranty's - do the paperwork wrong and you simply get paid the wrong amount (as long as it is in BMW's favor) or you don't get paid one thin dime.

nhwstormin said:
Also, the Governor (or at least his department of revenue) get's some of the blame. In Colorado, and in many other states, if the dealer does not "sell" consumables, then the dealer has to pay use tax on his cost for those items because the inventory exemption from sales tax only applies to items the dealer ultimately sells to his customer.

This doesn't pass the smell test. Are you positive? The oil was not used by the dealer; it was given to a customer at no charge. If you have a sale at zero dollars there is zero sales tax due. In effect, if I give a t-shirt to a customer in CO I have no revenue as there is no sale. The store is responsible for the Use Tax? Of course, I know zero about CO sales tax laws. So it's easy for me to open my mouth.

Your statement is true for shop consumables used within the shop itself although oil would be an example where it may not apply. Example: take in a used bike that needs 1 quart of oil. You add the quart. There is no use tax as that oil now becomes a Cost of Goods Sold which effects your profitability and not your sales and/or use tax obligation.

Time for the popcorn eating emotiocon (is that what it's called?) to appear.

Warranty repair doesn't pay for everything...?

AjaxTheDog

New member

billy walker

BMW Rider

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