Infiniti Dealer Labor Rates - Extended Warranty Won't Pay

[RocketCityJ30]

Hi all,

I just experienced my first extended warranty service call on our 2004 M45 at the local Infiniti dealership, and am less than pleased with the warranty company's performance. The cruise control stopped working, and a self diagnosis revealed either the ICC sensor or the ICC control unit. So, I took it to our local dealer, and sure enough, it is a bad ICC sensor - $1200!. But wait, I have my extended warranty from Royal Administration Services/Protective Administrative Services that will only cost me the $100 deductable.

Well, not so fast....first the dealer calls to tell me the company is questioning the diagnosis and such an expensive part, so they send out an inspector. Inspector does verify the part is bad, but now the warranty company wants to see if they can find it cheaper at other than the dealership. Next day, warranty company approves the claim and lets the dealer order the part, but the dealer now tells me that the warranty company will not pay their labor rate of $100/hour. The company says the maximum is $85/hour. In addition, the warranty company says the job should take 1.5 hours from diagnosis to completion, and the dealer says the alloted time is 2.5 hours.

Bottom line is the dealer says I have to pay the difference plus the deductable that the warranty company will not pay. Nowhere in my contract does it say there is a specific labor rate ceiling, only that the costs for repair must be reasonable. So, I called around to the local BMW and Mercedes dealers, and they also charge $100/hour. I called the Infiniti dealer in a much larger city where the car came from, and they start at $110/hour and go up to $120/hour.

Has anyone had a similar experience? What Infiniti dealer labor rates you are expereinceing in your area? We live in Huntsville, AL which is not a high cost of living area. I think the warranty company's rate chart for dealer service must be behind the times.

I intend to fight this with the company, as it can only get worse with more use of the extended warranty and more serious car failures in the future, and I want to nip it in the bud now.

I would appreciate any data on current labor rates anyone has experienced lately.

Thanks,

John

[M45Caliber]

Another reason to stay with the INFINITI extended warranty and not an aftermarket 3rd party company. These types of stories are not uncommon.

AFTER they have paid the dealer (so you get at least a grand out of them FIRST) call and ask for a senior level manager. Tell them they can either pay you the full amount (per your warrranty booklet) minus the $100 deuctible (that you already paid) or you will seek judgement against them in small claims court. Since you are only wanting about $300 or so,this is your best bet. They will have to incur the cost of an Attny, so my guess is you will see a check from them rather quickly.

Oh, and ask them to point out the contractual section that limits the hours and rates. Then get your dealer to copy the shop manual that states the number of hours for diagnostics and repair. You already did the legwork on the local shop rates, so you already have that for the courts. I'd call a big Nissan shop too -- just to be safe.

If you represent youself (easy to do with the "ammo" you have) there are no fees to speak of, so this is why it's the best scenario based on the amount you are seeking.

Obviously it may vary by state - perhaps an attny could chime in?

good luck - let us know what happens.

[SteveTheTech]

+1 for Infiniti Elite, they cover every thing with little to no question (from the dealer). I am sorry you are having such bad luck, but you are not alone. The company probably works with cheaper cars, that do no have ICC.

I have personally had some battles with these aftermarket companies. The job of replacing the ICC CU is not the easiest thing in the world and it requires recalibration of the sensor vertical angle, using a target board and a Consult. It sucks that they want you to pay more out of pocket, but that's an issue for the warranty company.

I would advise all other members and future owners who are searching for an extended warranty to stay as far away from this company.

Good Luck with your battle, keep us posted.

[RocketCityJ30]

Thanks for the replies on this topic so far. One somewhat key thing about my situation I forgot to mention in the first post is that this 3rd party extended warranty came with the car and was easily transferable ($50). On paper, you are right, it looks like a great warranty - 6 years or 100,000 miles - covers everything except maintenance items. But then the first time I go to use it.......

We have had third party warranties several years back on used cars we bought (our 1994 J30T being one of them which we bought in 1997), and no problems with service or labor rates. I read past posts on more recent experiences, and it seems the industry has gotten much worse on delivering what they promise.

Any more data points out there on local Infiniti dealer labor rates?

John

[SteveTheTech]

I think it has allot to do with the integration of more electronic control units. You may want to get a list of exactly what they will cover. I have had dealings with many aftermarket warranty companies some good, some bad. It sucks that they did not provide a detailed description of what they will pay for, and therefore effecting your final decision whether to go with them or not.

[jadeM45]

I have CUNNA Mutual's Mechainical Repair Coverage and have had them replace over $6,000 worth of stuff. Everything from the trunk shocks to a new headunit and CD changer. They ***** with the rep sometimes and try to find cheaper alternatives but allways lament and pay the dealer. It was bought through my credit union and was $1350 for 5 years and 60k miles. Best thing I ever bought.

[szh]

On my 1995 Q45, I had a third-party 100k warranty and had to argue with them on a couple of occasions - had to threaten them with a lawsuit (just a threat, did not need to actually do it) one time to get them to do something. The Infiniti dealer helped me out too.

Needless to say, this time on my M45, I have the Nissan-Infiniti extended warranty ...

Z