Insight: Do dealers make money or lose money on the 4yr/50k BMW service/maintenance?

Falafel Combo · 01-28-2013, 02:35 PM

How do they get reimbursed from BMW for all the "free" services performed on the cars, and all the recalls and warranty repairs?

justinnum1 · 01-28-2013, 02:40 PM

they bill the hours to BMW.

1.fresh.f30.335 · 01-28-2013, 02:49 PM

BMWNA (for US customers) is different than the ________ BMW dealer that you purchased your car at. The dealers are franchises, so while they are mandated to meet certain criteria to keep the franchise they are not directly responsible for the warrantee and contract that you sign with BMWNA.

In case you wanted to know why a dealer won't mind looking at something under warrantee its because the dealer gets paid for the time and parts from BMWNA; the back end infrastructure for service is networked together with all the other dealers and centralized at BMWNA. This means that BMW knows how much work has been put into a car, parts, etc. and can then pay it to the dealer. This is the best practice because it allows the end consumer to bring their car to any dealer and access the files, ensures that BMW isn't being ripped off by shady service departments (I know those don't exist, at all, ever...)

marseille82 · 01-28-2013, 04:23 PM

So what about BMW of Manhattan, they are owned by BMWNA I believe. Is it the same process for them?

01-28-2013, 02:35 PM	#1
Falafel Combo Banned 3773 Rep 6,673 Posts Drives: X5 xDrive50i Join Date: May 2011 Location: New England iTrader: (3)	Insight: Do dealers make money or lose money on the 4yr/50k BMW service/maintenance? How do they get reimbursed from BMW for all the "free" services performed on the cars, and all the recalls and warranty repairs?
	Appreciate 0 Tweet Quote

01-28-2013, 02:40 PM	#2
justinnum1 Major General 651 Rep 5,803 Posts Drives: 2018 330i Msport 6mt Join Date: Nov 2006 Location: South Florida iTrader: (0)	they bill the hours to BMW. __________________ F30 330i Alpine white/Coral red Msport 6MT
	Appreciate 0 Quote

01-28-2013, 02:49 PM	#3
1.fresh.f30.335 Second Lieutenant 91 Rep 286 Posts Drives: 2014 535xdrive M-Sport Join Date: Apr 2012 Location: NH-CT iTrader: (0)	BMWNA (for US customers) is different than the ________ BMW dealer that you purchased your car at. The dealers are franchises, so while they are mandated to meet certain criteria to keep the franchise they are not directly responsible for the warrantee and contract that you sign with BMWNA. In case you wanted to know why a dealer won't mind looking at something under warrantee its because the dealer gets paid for the time and parts from BMWNA; the back end infrastructure for service is networked together with all the other dealers and centralized at BMWNA. This means that BMW knows how much work has been put into a car, parts, etc. and can then pay it to the dealer. This is the best practice because it allows the end consumer to bring their car to any dealer and access the files, ensures that BMW isn't being ripped off by shady service departments (I know those don't exist, at all, ever...) __________________ '12 335i Sport Apline White w/black... Totaled '14 535i xdrive M-Sport Carbon Black w/Mocha Nappa
	Appreciate 0 Quote

01-28-2013, 04:23 PM	#4
marseille82 Captain 390 Rep 777 Posts Drives: 2022 X3 M40i Join Date: Sep 2012 Location: OH iTrader: (0) Garage List 2022 G01 X3 M40i [0.00]	So what about BMW of Manhattan, they are owned by BMWNA I believe. Is it the same process for them?
	Appreciate 0 Quote