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Mike L - warranty question Posted by Ari [Email] ![]() ![]() |
Mike-
Is there a difference in how a dealership is paid on warranty work between a dealership car and a customer car?
I ask because I've seen a few dealers (not all) where the condition of the CPO cars is amazingly poor. I went to test drive one '01 wagon, and it gave off blue smoke for a good 30 seconds after startup. The salesperson was unconcerned, saying that, 'well, if anything is wrong, the warranty will cover it.' I would figure that a dealership would try and make the cars as nice as possible, as laying down a smoke screen doesn't make for a confident customer and a good sale. Only a few dealerships in the area seem to spend any effort in making the CPO cars look good. I've seen a few cars in need of repairs, or missing parts. I know they're used, but the implication in CPO is a quality, detailed car.
Does the dealership get different different warranty work reimbursement once it's in an owner's hands? That's the only reason I can come up with for a shop trying to sell cars off the lot in obvious need of work.
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