Key Takeaways:

• Dealerships are reimbursed by manufacturers for warranty repairs, so customers usually don’t pay for covered work.
• The type of warranty can affect how repairs are handled and who is responsible for the costs.
• If warranty repairs are delayed, keeping detailed records can help protect your rights.

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When your car needs repairs, if the issue is covered under warranty, the dealership usually handles the work without charging you, but have you ever wondered how that process works behind the scenes? Dealerships don’t simply fix cars for free. Instead, they work with the manufacturer to get reimbursed for the parts and labor. 

Here’s our breakdown of how warranty repairs are paid for, what role the type of warranty plays, and what you can do if your claim is denied or your repair drags on longer than it should.

Do Dealerships Get Paid for Warranty Work?

Yes, when a car needs service under warranty, the dealership submits a claim to the manufacturer to cover the costs of parts and labor, so customers aren’t charged for covered repairs.

How the Payment Process Works

• Claim Submission: After completing warranty work, the dealership files a claim with the manufacturer detailing the repairs.
• Reimbursement Rates: Manufacturers set specific rates for different types of repairs, which may not always match the actual time or effort required.
• Labor Rates: Technicians often receive a flat rate for warranty jobs, which can be lower than what they’d earn for customer-paid work. 

Who Reimburses the Dealership for Warranty Repairs?

When a dealership performs a warranty repair, the manufacturer is responsible for covering parts and labor costs; this allows the dealership to complete necessary repairs without charging you. The exact process can vary depending on the type of warranty and the dealership’s agreement with the manufacturer.

Does the Type of Warranty Matter?

Yes, the type of warranty can influence how repairs are handled and who pays for them. A factory warranty usually covers a wide range of repairs for a set period, with the dealership being reimbursed directly by the manufacturer. Extended warranties can work a bit differently; some require you to pay upfront and get reimbursed later, while others let the dealership bill the warranty provider directly. 

Service contracts are different from warranties and typically kick in after the factory coverage ends, but they may not offer the same protections or level of service.

Can You Take a Car Under Warranty to Any Dealership?

You can usually take your car to any service center for routine maintenance, but warranty repairs should be handled by a dealership authorized by the manufacturer. 

Using an authorized dealership ensures they have the proper training, tools, and access to official parts to complete repairs correctly and without risking your warranty. While regular maintenance can often be done at any reputable shop, it’s important to keep detailed records to avoid potential disputes.

Can a Dealership Deny Warranty Work?

Yes, dealerships can sometimes deny warranty claims if they don’t meet the terms. While they’re required to handle covered repairs, there are a few common reasons a claim might be refused: 

• Lack of Coverage: If the repair isn’t included in the warranty, the dealership can deny the claim.
• Modification Issues: Aftermarket parts or modifications that cause problems may lead to a refusal of warranty service.
• Maintenance Gaps: Skipping or missing required maintenance can also result in a denied claim.

If you feel a warranty claim was unfairly denied, you may have the right to appeal. As mentioned above, keeping detailed records of all repairs and maintenance will help support your case.

When Is Warranty Work Not Covered?

Most warranties include specific exclusions that owners should be aware of: 

• Normal Wear and Tear: Brake pads, tires, and wiper blades are usually not covered because they wear out over time.
• Accidental Damage: Repairs for accidents aren’t covered by the warranty; insurance typically handles these.
• Vehicle Misuse: Using your car in ways the manufacturer doesn’t intend, such as racing, can void the warranty.

What to Do If Your Warranty Repair Is Taking Too Long

If a warranty repair is taking longer than expected, there are a few steps you can take to handle the situation. 

Start by keeping detailed records of all your communications with the dealership, including dates, times, and the names of the people you spoke with, as well as copies of all service records and repair orders. Regularly follow up with the dealership to check on the status of your repair, and if delays continue, consider escalating the issue to the service manager or reaching out to the manufacturer directly. 

If you’re still having trouble, contacting a Lemon Law lawyer can help you understand your rights and explore your options for resolving the issue.

How Do I Know If My Car Is Still Under Warranty?

To find out if your car is still under warranty, start by checking your purchase documents and owner’s manual for coverage details. You can also provide your Vehicle Identification Number (VIN) to the dealership or manufacturer, who can confirm your warranty status. Keep in mind that warranties often have time and mileage limits, so reviewing these factors will help you determine if your car is still covered. 

Many manufacturers also offer online tools to quickly check warranty information using your VIN.

What Is the California Lemon Law?

The California Lemon Law is designed to protect consumers who buy or lease vehicles with ongoing defects. If your car qualifies as a lemon, you could be entitled to a replacement or a refund. 

Working with a Lemon Law attorney can make the process much easier. An experienced lawyer can help you understand your rights, guide you through filing a claim, and negotiate with the manufacturer to make sure you get the compensation you deserve.

Faulty Car on Your Hands? Contact Our California Lemon Law Firm 

If you have questions about your vehicle’s warranty or think your car might be a lemon, Norman Taylor & Associates can help. As one of California’s leading Lemon Law firms, we’ve helped thousands of clients successfully resolve issues with manufacturers. 

Call 818-244-3905 today to schedule your free consultation with our attorneys!

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✓ Content checked by the lemon law attorneys at Norman Taylor & Associates